Sri Lanka-Pakistan trade sliding down

New envoy expresses concerns at SL-Pakistan Biz Council meeting

Newly-arrived Pakistani High Commissioner in Sri Lanka Maj Gen (R) Syed Shakeel Hussain stressed the importance of Sri Lanka and Pakistan working together towards resolving impending trade issues between the two nations immediately.

The High Commissioner stressed this point while expressing his deep concern over the slide in trade between Sri Lanka and Pakistan in recent times. During the last year, he said it has gone down by $ 100 million.

Meeting the members of the Sri Lanka-Pakistan Business Council (SLPBC) at the Ceylon Chamber, the High Commissioner pointed out that this was saddening, especially in the backdrop of an FTA existing between the two countries.

Speaking here, Sri Lanka-Pakistan Business Council President Rohitha Thilakaratne said that the existing potential between the two countries was certainly not tapped.

“Unfortunately as we discussed, the trade agreement that was signed between Sri Lanka and Pakistan is not giving the desired results. Instead of going upward, we are looking at a downward trend.  I think that is something that both countries will have to focus immediately and resolve,” said Thilakaratne.

He added that numerous violations of the FTA even without consulting the bilateral partner have resulted in Sri Lankan exports to Pakistan dropping. According to him, long delays in resolving FTA issues are also an issue faced by the Lankan exporters to Pakistan.

Thilakaratne also suggested that apart from commodity and goods trading, both countries also should focus on investments and setting up joint ventures in the areas of pharmaceuticals, leisure, construction material, sugar and niche sports goods markets.

“Pakistan is the 11th largest and most populous nation in the world but it is definitely not tapped.  We need to raise the trade exchange to $ 1 billion. It is possible,” Thilakaratne further said.

In the meantime, the Pakistani High Commissioner answering questions raised by the members of the Sri Lanka-Pakistan Business Council said: “I would request this powerful forum SLPBC to work it in two tiers. Firstly, issues relating to the existing FTA and trade; secondly, create a strong mechanism with stakeholders to mitigate and resolve issues and to promote investments.”

He insisted on setting up a stakeholders committee comprising a cross section of importers/exporters, which should include a representative from the trade desk of both High Commissions.  

The envoy also promised to look into the areas of extending visa period of regular business people and high import duty related issues.  He called upon the SLPBC Committee to list down all the present issues on the FTA faced by the Sri Lankan businessmen without any further delay.

The trade between Sri Lanka and Pakistan during year 2014 stood at $ 350 million, this is nearly a $ 100 million slide, compared to the trade exchange occurred in 2013. The trade balance stands in favour of Pakistan.