Pakistani fruit and veggie industry in Sri Lanka to enhance bilateral trade

A Pakistani trade delegation of fruit and vegetable producers and exporters is visiting Sri Lanka to explore the ways and means to enhance bilateral trade between the two countries.

The participants of the delegation specialise in the production and export of various fruits and vegetables including guava, chikoo (sepatila), mango, citrus, berry, potato, dry fruits, gurr, tobacco (cigar), fresh and dry dates, etc. The delegation consists of six members led by Faqir Nusrat Hussain.

Eager to reap maximum benefits from the Free Trade Agreement (FTA) between Pakistan and Sri Lanka, the delegation will also explore the opportunities in the tea sector. The delegation will visit Kandy to interact with the local Chamber of Commerce, Tea Research Board and to visit tea factories and spice gardens.

During their stay in Sri Lanka, the delegation will hold meetings with the Sri Lankan fruit and dry fruit importers as well as other stakeholders to explore the possibilities of enhancing bilateral trade.



The meetings scheduled with the Sri Lankan businesses would offer a good opportunity to the local businessmen to gain awareness and knowledge about the prospects for expansion of the two-way trade between Pakistan and Sri Lanka in the fruit and vegetable sector.

Sri Lanka was the first country to sign a Free Trade Agreement (FTA) with Pakistan. Following the FTA coming into operation in June 2005, bilateral trade between both the countries has been strengthened. Resultantly, Pakistan has now become the second largest trade partner for Sri Lanka in the South Asian region.

The enhanced bilateral trade between the two friendly countries is reflected by an increase in the number of products imported from and exported to Sri Lanka, such as fish, meat, vegetable, foliage, plant, sugar, biscuits, pastry, cakes, mineral products, fibre boards, leather and leather-based products, footwear, gems, jewellery, value-added copper products, electrical items, bicycles, boats and floating structures.

There is great demand for Pakistani products such as cotton yarn, fabrics, potatoes, pharmaceutical products, knitted or crocheted fabrics, articles of iron and steel, galvanised pipes, rice, fish, seafood, textile articles, articles of apparel and clothing accessories, rods of refined copper, etc.

Under the FTA, Sri Lanka and Pakistan have agreed to offer preferential market access to each others’ exports by way of granting tariff concessions. Sri Lanka is enabled to enjoy duty free market access on 206 products in the Pakistani market, while Pakistan, gained duty free access on 102 products in the Sri Lankan market.

The aim of a free trade agreement is to reduce barriers, to facilitate exchange so that trade can grow as a result of specialisation, division of labour and most importantly via comparative advantage.Items in the zero duty list of Pakistan include frozen fish, vegetables, spices, fruits/juices, polymers of vinyl chloride in primary forms, natural rubber, raw silk, tanned/crust skins, wool, some varieties of paper and board, carpet and floor covering, non-alloy aluminium, iron and steel products and toys/dolls.

Sri Lanka’s zero duty items under the FTA include chickpeas, dates, oranges, benzene, toluene, apparel and clothing accessories, ball bearings, penicillin, streptomycin, tetracycline and their derivatives and vacuum flasks.

The two friendly countries also signed a Bilateral Investment Treaty in December 1997, which came into force in January 2000 after ratification.

In addition a Memorandum of Understanding between the Board of Investment of Pakistan and Board of Investment of Sri Lanka was also signed in February 2007 to strengthen cooperation in all the sectors of investment of both countries.

This MoU provides support to the enterprises on both sides and encourages them to invest in both countries. The two BOIs also practice sharing of information on investment polices and projects and encourage exchange of expertise.

Pakistani agricultural products provide a cheaper and higher quality alternative to Sri Lankan imports from faraway countries and also add diversity in Sri Lankan markets to the advantage of consumers.