Zardari offers help for industries

Pakistan President Asif Ali Zardari Monday offered assistance to Sri Lanka in cement, sugar and dairy industry. He urged Pakistani and Sri Lankan businesses to benefit from liberal trade policies of either country, through joint ventures and investment.

Addressing a business forum, comprising leading business personalities and corporate leaders of Pakistan and Sri Lanka, on the third day of his visit to Sri Lanka President Zardari said Pakistani investors were keen to explore several new sectors.

The President said after a long and difficult struggle, Sri Lanka had finally overcome militancy and insurgency and said the country was poised for great things and historic achievements. The President lauded the resolve and determination of President Rajapaksa and the people of Sri Lanka and said, President Mahinda Rajapaksa's economic policies - Mahinda Chintana have revived the economy. He noted Sri Lanka's 8.5 percent GDP growth rate and said it

was a testimony of the brilliant economic policies.

"While the world was still recovering from global recession, Sri Lanka's growth was second only to China," the President added. Zardari said Sri Lanka was a gateway to billions of people and needed modern infrastructure to get more investments. He said Pakistan had largest reserves of cement raw material and could offer it to Sri Lanka to help build its infrastructure to attract foreign tourists and businessmen.

The President said he firmly believed that the money of investors in any particular country needed to stay and benefit the local economy. President Zardari proposed a high level conference of investors from either side to be jointly chaired by leaders from both the countries to give a final shape to their economic cooperation that might lead to better gains for private sectors of both the countries.

The President said scoring a political victory or winning a military war was not enough. President Zardari said economic revival and prosperity was the shared objective of Pakistan and Sri Lanka and the two countries must join hands for achieving this shared objective.

President Zardari said the recent devastating floods had affected Pakistan's economy and the government had taken measures for rehabilitation and reconstruction.

"We have adopted prudent policies to bring the economy back on the track. The International Monetary Fund has recently recognized these policies and extended a package," he said.

President Zardari said proximity between the two countries could be used to great mutual benefit. He said the present bilateral trade volume of US $ 300 million does not reflect the true potential of trade between the two countries and could be raised easily to achieve the target of one billion dollars in the near future. President Zardari said there was a huge potential for increased trade in; light engineering, fresh fruits and vegetables, processed goods, textiles, cement, pharmaceuticals and industrial chemicals.

The President said Free Trade Agreement has provisions that can be used to enhanced trade and asked the business communities of both the countries to provide feedback to the respective governments and identify bottlenecks in the existing trade mechanism. He asked the businessmen to invest in the thriving sectors of each others economies and said Pakistan on its part was ready to assist Sri Lanka in the sugar, cement and dairy sectors. He however pointed that in this regard closer cooperation in the financial and banking sectors was required and said closer linkages among the chambers and capital markets was needed.

The President recalled his meetings with the Sri Lankan leadership where it was decided to reinvigorate the Joint Economic Commission. He said the Joint Economic Commission has been tasked to explore the possibilities of this new phase of economic cooperation. Pakistan can help Sri Lanka set up sugar and cement plants in return for import of Sri Lankan produce and manufactures in Pakistan in barter trade.

He said the two countries have agreed to abolish the visa requirement for holders of diplomatic and official passport holders and agreed to start direct weekly air flights between the two countries from early next year.

He mentioned offer to open a branch of the National Bank of Pakistan in Colombo on reciprocal basis and said cooperation in banking sector was important for enhancing trade and business.

President Zardari said Pakistan has a rich Buddhist archaeological heritage which it has preserved and protected zealously.