Pakistan is the second largest trading partner of Sri Lanka in the SAARC region.

A substantial growth in bilateral trade is seen in both exports and imports, especially after Pakistan-Sri Lanka Free Trade Agreement (PSFTA) was implemented in 2005.

The value of total trade between the two countries, has increased from US $158 Mn in 2005 to US $350 Mn in 2010.

The balance of trade has been in favour of Pakistan.

Pakistan ranks as the second largest buyer for Sri Lanka in the SAARC region, accounting for around 10 % of Sri Lanka's total exports to the region.

Sri Lanka's exports to Pakistan reached the highest at US $71.42 Mln.

in 2008 while in 2010, value of exports to Pakistan has registered US $60.38.

When compared with the export value of US $40 Million in 2004, prior to the implementation of the Free Trade Agreement, it could be seen that there is very positive impact on Sri Lanka's exports to Pakistan in subsequent years.

Sri Lanka's main exports to Pakistan are natural rubber, fresh coconuts, desiccated coconut, copra, coconut fibre, betel Leaves, tea, spices, new pneumatic tyres, electric switches, animal food, aluminium foil, wood charcoal and activated carbon, synthetic filaments, footwear sole, plastic based articles, natural graphite.

Items such as pineapple, porcelain tableware, ceramic tiles, furniture, fiber board of wood, herbal cosmetic products and plastic articles are gradually entering the Pakistan market.

Similarly, Sri Lanka's imports from Pakistan have increased considerably to reach US $281.76 Mn in 2010.

This significant increase compares with the import value of $108 Million in 2004, the year before the implementation of Free Trade Agreement.

Major import items from Pakistan to Sri Lanka include cotton, rice, cement, potatoes, onion, medical instruments, pharmaceutical products, textile fibres, cotton fabrics, leather, steel pipes, spices such as coriander, polyethylene, paper board, citrus fruits, electrical machines & apparatus, packing materials, tractors, dried fish etc.

These increases in bilateral trade, especially during last few years is a clear reflection of potentials that are available for both countries in further expanding the two way trade.

There is a need therefore to study the business opportunities available in each other's market by the business community.

Regular, interactions between the business community at both individual and organisation level is of utmost important in this direction.

It is therefore important for the business community to look for various trade and business oriented events organised in both countries where partnership could be established.

It is important to know that both countries have implemented the final phasing out of import tariffs under PSFTA, paving the way for duty free access for more than 4500 product categories in each other's market.

The Main objective of this Free Trade Agreement is to expand bilateral trade, offering a comparative advantage over the products originated from other supplying counties.

Authorities of the two countries are regularly monitoring and reviewing the progress of the bilateral trade and economic relations and are in the process of addressing issues that are being encountered by the business community.

During the 10th Ministerial Session of the Joint Economic Commission held Last year in Islamabad, the two sides agreed to address various issues that have arisen with the implementing of the Free Trade Agreement, in order to facilitate business flows.

Given the wide range of products covered under the Agreement, and the eligibility for duty concessions with more flexible rules of origin criteria, it could be expected that trade between the two countries will improve significantly while the product base being diversified.

However, the full potential for growth and expansion in bilateral trade under the FTA is yet to be explored by the business communities of the two countries.

In the field of co-operation in joint ventures and investment, both countries are yet to exploit the full potential.

At present, bilateral investment between the two countries is at a very moderate level.

Currently there are about 25 projects undertaken by Pakistan investors in Sri Lanka covering areas including Chemicals, Rubber, Plastic, Apparel manufacturing, Leather products, Food and Beverages, etc.

Efforts are now being made by both Governments and private Sector organisations to strengthen and expand the trade and economic relations by holding and participating trade exhibitions and promotional events, exchange of trade delegations while improving direct connectivity between the two counties.

In this direction Sri Lanka has invited Pakistan Business community to visit the forthcoming international trade Exhibition SRI LANKA EXPO 2012 scheduled to be held in Colombo from 28-30, March, 2012.

The Exhibition will showcase a wide range of Sri Lankan products to overseas buyers ranging from agricultural products to industrial products including apparel, rubber and rubber based products, spices, tea, coconut and coconut based products, fruits and vegetables, fish and fishery products, ceramics and porcelain, boats, electrical and electronic products, printing and stationary, confectionery items, gems and jewellery, ICT/BPO/KPO .

Sri Lanka is emerging as a regional hub for trade, investment, tourism and related activities in this part of the world.

Symposiums on Investment and Tourism with the participation of leading international investors, professionals will also be held parallel to this Exhibition to facilitate overseas investors and representatives in tourism industry.

This event is expected to draw over thousand overseas buyers, investors and representatives from tourism industry.

Sri Lanka EXPO 2012 will be a good platform for the business communities of the two countries to explore new business opportunities, in trade and investments.

This will be a unique opportunity for Pakistani business community, investors and representatives in the Tourism industry to meet with the Sri Lankan partners and establish business contacts.

The Sri Lanka Consulate General in Karachi in co-operation with Sri Lanka High Commission in Islamabad will facilitate the visits of Pakistan businessmen to this international event.

Details on this event, including registration, concessionary air tickets , hotel accommodation are available on web: www.srilankaexpo.com .

More specific information could also be obtained from the Sri Lanka Consulate by contacting the commercial division Tel (021) 35854024 Fax: 35857472 E Mail: slcgkhi@yahoo.com, slcgkhi@cyber.net.pk web.

www.slcgkhi.com.

Copyright Business Recorder, 2012

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