Pakistan-Sri Lanka trade to reach US $ 500 m
US $ 250 m export credit line to Sri Lanka:
Anjana Samarasinghe and Charumini de Silva
The Trade between Sri Lanka and Pakistan is to reach US $ 0.5 billion
within the next five years. Pakistan President Asif Ali Zardari
addressing the Sri Lanka - Pakistan Business Forum 2010 yesterday said
the two countries have had a good relationship as good friends and
partners in the region.
Pakistan President
Asif Ali Zardari |
“With the restoration of peace; the sky is the limit for Sri Lanka.
This is a unique situation for Sri Lanka to recover. Sri Lanka will
recover gradually and Pakistan will sincerely assist Sri Lanka,” he
said.
He also called for a barter trade with Sri Lanka rather than
depending on dollar-denominated trade.
There should be incentives for foreign investors that make them keep
their profits here in Sri Lanka rather than taking out from the country.
President also proposed that there should be discussions with high level
financial teams from both countries in formulating strategies to support
each other. Sri Lanka needs to develop many parts of the country and
Pakistan is ready to assist in improving infrastructure of the country.
Pakistani companies should visit Sri Lanka to seek investment
opportunities and invest, he said.
Industry and Commerce Minister, Rishad Bathiudeen said the bilateral
trade between the two countries has improved remarkably. The total
turnover of bilateral trade between Sri Lanka and Pakistan in 2005
recorded US $ 150 million, which grew up to US $ 252 million in 2009.
This is a great indication of the strong trade between the two
countries.
“It is time that Sri Lanka and Pakistan should further strengthen our
bilateral trade agreements while increasing the volumes of trade,” he
said.
Sri Lanka recorded an eight percent growth during the first six
months of this year, while becoming one of the best performing capital
markets in the world. The macro economic fundamentals are stronger and
stabilized. The industries, trade and commerce are taking place in a
rapid growth; with the investor friendly business environment the
country offers great access to the market as well. The trade ties
between the two countries should be enhanced and promoted to have a
constant impetus. There are immense potential opportunities in tourism,
textile, IT, agriculture, fisheries, telecommunication, leather
products, infrastructure, and sports products for the Pakistan investors
to venture into. Sri Lanka is one of the most preferred countries for
investments especially in the areas of garments, packaging, IT,
telecommunication and rubber.
Sri Lankan investors have many opportunities in the power, gas and
mining in Pakistan and Pakistan will offer similar incentives to those
Sri Lanka offers for these investors Pakistan State Minister and Board
of Investment Chairman Saleem Mandviwala said at the Business Forum.
He said that Pakistan will also extend an US $ 250 million export
credit line to Sri Lanka to facilitate trade between the two countries.
“We will also bring down more projects to Sri Lanka,” he said.
Air links between two countries will be further strengthened with
direct flights and visa procedures will be relaxed to have more access
to Pakistan and facilitate more trade and investment among two
countries, he said.
“We invite the Sri Lankan business community to explore the business
opportunities available in Pakistan,” he said.
Pakistan is the second largest trading partner of Sri Lanka in the
South Asian region and the Pakistan, Sri Lanka FTA covers over 4,000
products. |