KARACHINULL-Sri Lanka FTA needs revision to enhance export quota of Pakistan agro-based products. A seminar will be held on the second of next month wherein trade experts, KCCI members and High Commissioner of Sri Lanka will discuss modalities to increase the bilateral trade.
 
This was agreed in a meeting between President KCCI Abdul Majid Haji Muhammad and Consul General of Sri Lanka , V.S. Sidath Kumar here at Karachi Chamber of Commerce and Industry, said KCCI statement here on Tuesday.

President KCCI, on this occasion, said in Pak-Sri Lanka FTA, the export quota of Pakistani rice , potato, and other agro products is not adequate.
 
Abdul Majid urged both the Governments for deliberation to revise the FTA in view of expansion in bilateral trade. Sri Lanka is importing Indian agro commodities to fulfil its need whereas the same products can be exported to Sri Lanka under FTA if the quota is revised.
 
It was agreed in the meeting to hold a seminar on Pak-Sri Lanka FTA on December 2, 2009, wherein Pak-Sri Lankan trade experts, members of KCCI and High Commissioner of Sri Lanka will address and identify products and areas and discuss ways to boost the bilateral trade.
 
President KCCI Abdul Majid voiced that both countries have good friendly, economic and trade relations. Balance of trade between the two countries is in favour of Pakistan, increasing year by year since 2001-02 Pakistan’s exports increased from dollars 71.96 million in 2001-02 to dollars 214.95 million in 2007-08, shows increase of 198 percent.

On the other hand imports from Sri Lanka increased from dollars 28.52 million in 2001-02 to dollars 61.58 million in 2007-08, shows increase of 116 percent.
 
Abdul Majid highlighted that there is ample goodwill for expansion of trade and establishment of joint ventures between the two countries in agro-based products including sugar production, seafood processing; value-added textiles and garments; tea and its plantation; electronics; metal fabrication and light engineering; pharmaceutical products; dehydration, preservation and canning of fruits and vegetables etc.

Abdul Majid said that Pakistan and Sri Lanka were lucrative investment destinations for exporters of both countries as on the one hand Pakistan was a gateway to resource-rich Central Asian States while on the other hand Sri Lanka enjoyed duty-free access to huge European Union and Indian markets.

He asserted on the joint ventures in food processing, seafood, fruits and vegetables, ship-breaking, value-added textile products, sports and surgical goods and pharmaceutical. Chamber Chief also invited the Sri Lankan companies to participate in the 7th International “ My-Karachi NULL of Harmony Exhibition” to be organized in June 2010.

Senior Vice President KCCI, Rasheeduddin Rashid underlined the need for joint ventures in construction and cement sector. Pakistan cement manufacturing are ISO certified exporting cement to various destinations worldwide. He informed that Pak-Sri Lanka have similarity in marine aqua-culture therefore Sri Lanka, using modern techniques, can outsource its technology and services to modernize the shrimp farming, bamboo farming etc. in the costal areas of Sindh.

Consul General of Sri Lanka, V.S. Sidath Kumar, complimented the vibrant role of KCCI to promote trade. Commenting on the Pak-Sri Lanka FTA, Sri Lankan Consul General highlighted that possibilities do exist to increase export of agro-based products to Sri Lanka subject to revision of FTA.

He informed about the great demand of Pakistan onion in Sri Lanka which is not included in FTA. He seconded the suggestion of SVP-KCCI to collaborate in shrimp farming and sea food products. He invited KCCI members to participate in Agriculture, Livestock and Fisheries MEDEX-2009 expo. Sri Lankan preferred Pakistani Pharmaceutical products therefore Pakistan Pharma export should be enhanced, he said. He also invited KCCI members to invest in Sri Lanka where the Government is providing equal opportunities like Pakistan for foreign investors.
 
Speaking of trade potential between two countries, Lankan envoy informed that bilateral trade is improved to 70 percent whereas the existing trade potential of dollars 300 million was not achieved yet. Trade between SAARC countries is facing problems and the trade was only 5 percent, on the other hand trade between ASEAN countries was 26 percent.