Sri Lanka-Pakistan pledge to deepen bilateral trade relations

• Visiting Pakistan PM Imran Khan calls for improved trade relationship to uplift subcontinent
• Invites Lankan biz to invest in China- Pakistan Economic Corridor
• Stresses ongoing conflicts in region have led to opportunities slipping away
• SL expresses interest to increase PK-SL trade figures from millions to billions
• State Minister Cabraal says two countries should move from geopolitics to geoeconomics 

By Shabiya Ali Ahlam
Sri Lanka and Pakistan yesterday affirmed commitment to actively explore and further deepen trade relationships, an effort that would not only benefit the two nations but also help the Indian subcontinent emerge stronger on the world stage.

Pakistan Prime Minister Imran Khan, who was in Sri Lanka on a two-day visit, stressed the need for countries in the subcontinent to resolve the ongoing conflicts and focus on boosting trade, so that the population of these nations can be lifted from poverty. “Conflicts are no way of solving problems. All these problems are subservient to trade, everything is subservient to investment, well-being and business.

We need to resolve our differences through dialogue, not through conflict. Because eventually, when you do not trade in a  subcontinent with almost 1.3 billion people, a huge potential is lost,” said Premier Khan while addressing the Sri Lanka-Pakistan Trade and Investment Conference in Colombo yesterday morning. 

He added that it is unfortunate that the region does not have the ability to resolve political differences through dialogue, which has led to negative economic repercussions for the entire region.

In boosting trade relationship with Sri Lanka, Premier Khan called on the Lankan business community to consider investing in the China-Pakistan Economic Corridor (CPEC), which according to him would allow greater access to new markets for trade.

The CPEC, which is a framework of regional connectivity, is conceptualised to not only benefit China and Pakistan but also is expected to have a positive impact on Iran, Afghanistan, India and the Central Asian Republic among other regions.

Speaking on behalf of the Sri Lankan government, at the event that was also graced by Prime Minister Mahinda Rajapaksa, was State Minister for Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal.
The State Minister pointed out that Sri Lanka and Pakistan have made little effort improving trade, despite there being opportunities and must look to increase trade in billions of dollars.

“We should be looking at a lot more, given the relationships that we have, the friendships that we enjoy, the way in which we have cooperated with each other. This tells us that we should be talking about trade and investment in the billions. 

“Let’s see whether today would be the day where we start on that journey,” said Cabraal.

Just as Prime Minister Khan, the State Minister too called on the visiting Pakistan business delegation to invest in Sri Lanka’s upcoming Port City project and the Hambantota investment zone.

He stressed it is time Sri Lanka and Pakistan move from geopolitics to geoeconomics.

Meanwhile, during the investment forum, Pakistan and Sri Lankan businesses were presented with the opportunity of exploring avenues of trade.

For Pakistan, Sri Lanka is the 19th largest export destination and the third biggest market in South Asia for its products. Bilateral trade between Pakistan and Sri Lanka has increased after the signing of Pakistan-Sri Lanka Free Trade Agreement (PSLFTA) in 2005.

However, according to the Trade Development Authority of Pakistan (TDAP), although the PSLFTA has been in practice for 15 years, much has not been achieved by both the nations due to lack of awareness of the agreement and the benefits it offers. The 2020 TDAP report stressed it is necessary for the Sri Lankan market to be promoted for its potential.