'Bilateral trade with Pakistan, encouraging'

With the 2005 implementation of the Free Trade Agreement (FTA) between Sri Lanka and Pakistan, we have witnessed very encouraging results in our bilateral trade. Exchanges between the two countries have increased substantially and Pakistan is now the second largest trading partner of Sri Lanka in the SAARC region, said Industry and Commerce Minister Rishad Bathiudeen.

Minister Bathiudeen was addressing the Federation of Pakistan Chamber of Commerce & Industry on July 5. He was leading a Sri Lankan delegation to Pakistan for ministerial level discussions on the Joint Economic Commission.

The value of total trade between the two countries has increased from US $ 158 million in 2005 to US $ 342 million in 2010.

"As we are all aware, Sri Lanka and Pakistan have been enjoying friendly and cordial relations in diverse fields. Among them trade and economic activities play a very important role.

"I need not emphasize the fact that Pakistan has been a very close and a genuine friend of Sri Lanka. Our two countries are connected with deep rooted bilateral cooperation, sharing common views, and expectations on many regional and international issues," he said.

Speaking of the Joint Economic Commission effort, Minister Bathiudeen said: "under the 10th Session of Sri Lanka Pakistan Joint Economic Commission bilateral forum, we explore ways of bilateral cooperation in various fields." The expansion and development of trade, economic and commercial activities between our two countries is very much a priority in our agenda, he said.

"Even though our bilateral trade has been increasing over the years, it has not shown the full potential. We need to harness the close relationship and make full use of the opportunities available before us with a view to enhancing our bilateral cooperation, for the mutual benefits of both countries," he said.

What is important at this stage, is for the business community in both the countries to look for new opportunities, created under the FTA, and explore them, to the full potential. Except for a few hundred products, listed in each-others' Negative Lists, all other products are eligible, for duty concessions and duty free access, to each-others' market under the Pakistan - Sri Lanka Free Trade Agreement. This certainly gives an opportunity for the business community of both the countries for greater market access, he pointed out.

"Sri Lanka has a lot to offer to the Pakistan market. We produce high quality agricultural, manufactured and industrial products. We are well known for our natural rubber, tea, coconut and coconut based products, spices, betel leaves in the agricultural sector, for which there is a good demand in Pakistan. Sri Lanka is emerging as a new destination, for trade and economic activities, in this part of the world," he said. We have now gained a ground, for manufactured and industrial products, in addition to our traditional products, he added.

Porcelain tableware and kitchenware, ceramic tiles, furniture, electrical switches and sockets, fiber board of wood, herbal cosmetic products and plastic articles are some of the products that Sri Lanka has been able to promote in this important market of Pakistan.

Similarly, Pakistan has a lot to offer to us from agricultural products to manufactured and industrial products. There are many more opportunities in our countries and for this, the business community need to engage, and enhance interactions with your counterparts, and explore those emerging opportunities," Minister Bathiudeen said.

"Sri Lanka has recorded an impressive 8.1% economic growth, which is the highest growth-rate that Sri Lanka achieved during the last few decades. The economy is expected to grow, even at a higher rate of 9% in 2012 and 2013, he said. We have witnessed these improvements in our economy across almost all the sectors. With these macro- economic developments, Sri Lanka is now seen, as a fast growing economy in Asia. While we project an increasing growth of our economy the government is fully aware of the basic needs of the business community, the minister added. The government has focused on the need for developing the most needed infrastructure facilities, in our process of faster economic growth. Foreign investors and entrepreneurs, are given special attention to undertake business activities in line of their business, within the government economic policy. We have opened almost all sectors, of our economy for foreign investments, he said.

"Hundred percent foreign ownership of investment projects is allowed," he added.