FTA to double volume of Trade between Pakistan, Sri Lanka
[July 07, 2005] 

Pakistan Times Foreign Desk

COLOMBO (Sri Lanka): With the setting of free trade agreement this month, the volume of business between Sri Lanka and Pakistan is expected to get double touching the level of almost 300 million dollars in the first year.

Pakistan's first independent daily e-Newspaper, ‘Pakistan Times’ understands through credible links that the projected dealings between the two South Asian nations would become twofold in goods such as tea, betel leaves and cotton after the deal comes into force.

A three-day Pakistan trade exhibition which opened in Colombo at the weekend proved very successful, opening vistas for a further boost in bilateral trade. Similar events are expected to be organized by Sri Lankan exporters in Pakistan.

Perspective

The magnitude of Pakistan’s exports to Sri Lanka was worth 97 million dollars in 2004, up from 76 million dollars in the previous year.

On the other hand, Sri Lanka's exports to Pakistan stood at 48 million dollars, up from 38 million dollars in 2003.

Pakistan's cabinet approved the free-trade agreement on April-12 and both countries were expected to make the treaty operational shortly.

Significantly, the two countries are members of the seven-nation South Asian Association for Regional Cooperation [SAARC] which has also agreed to pursue a free-trade arrangement covering one-fifth of the world's population.

A full regional free trade agreement was to be in place by 2001 as agreed by SAARC leaders in 1998, but negotiations are still underway.

Bilateral Route

The slow movement of SAARC prompted Sri Lanka to use the ‘fast-track’ bilateral route to boost trade and Sri Lanka in late 1998 signed a free trade deal with India.

Sri Lanka is negotiating similar deals with Bangladesh and Maldives.

The SAARC, which was founded in 1985, is to promote economic cooperation among the member countries which include Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

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Last Updated Date: July 07, 2005 .