Virtual biz forum promotes greater trade and investment between Sri Lanka and Pakistan

By Angelica Bamaramannage

Bilateral trade between countries is a key aspect to focus on as the world struggles to recover from the economic downturn caused by the unprecedented impact of COVID-19. In this spirit, with the aim of promoting trade between Sri Lanka and Pakistan, the Sri Lanka Export Development Board (EDB) together with the High Commission of Pakistan in Sri Lanka organised a virtual session on Friday, 18 September highlighting the trade and investment opportunities available in both countries for participants from Sri Lanka as well as Pakistan.

The session was moderated by Anoma Premathilake who is the Director-Market Development of EDB. She stated the objective of the webinar as ‘to create awareness among the business communities in both countries and the opportunities available for trade and investment.’

The panel consisted of High Commission of Pakistan, Colombo Trade and Investment Attaché Asmma Kamal, Trade Development Authority of Pakistan (TDAP) Director General Riaz Ahmed Shaikh, Department of Commerce, Sri Lanka Director of Commerce Somasena Mahadiulwewa, and Board of Investment (BOI) Sri Lanka Executive Director/Investment Promotion Prasanjith Wijayatilake. 

They presented on the Pakistan Economy and business and Investment opportunities, Pakistan’s import/export procedures and the role of TDAP in trade facilitation, export opportunities to Pakistan under the Pakistan-Sri Lanka Free Trade Agreement and Investment opportunities in Sri Lanka respectively. This was followed by a brief Q&A session.

The webinar was formally inaugurated by EDB Chairman Prabhash Subasinghe. “We’re quite passionate on both sides to improve our trading relationships and this webinar is part of that series,” he said.

Speaking of Sri Lanka’s economic recovery mostly being led by exports, Subasinghe pronounced that businesses in Sri Lanka were now fully operational due to the strong COVID controls enforced in the country during the peak months of the pandemic. He proceeded to highlight a few facts and statistics related to the existing trade relationship between the two countries including the free trade agreement between the two nations and managed to bring to his audience’s attention the possibility of doubling the trade potential of Sri Lanka which currently stands at approximately Rs. 80 million, to reach almost Rs. 160 million. ‘There is a vast untapped potential in trade between both countries, which can be exploited for their mutual benefit’, he added.

Pakistan High Commissioner in Sri Lanka Maj. Gen. (Rotd.) Muhammad Saad Khattak spoke of the mutual bond between the two countries through difficult times in history and the present challenge of achieving the massive combined potential that could be achieved out of which we are currently achieving only half. “History will remember us kindly if we face up to our challenges with commitment and deliver to the dreams of our leadership and people,” he stated. 

The High Commissioner concluded his speech by assuring any potential Sri Lankan investors present that should they walk up to him with the intention of improving the bilateral trade between SL and Pakistan, he will do all in his power to make sure they are supported.

The first technical session by Asmma Kamal mainly focused on two areas: namely the economy of Pakistan and the bilateral trade between Sri Lanka and Pakistan. 

She provided a basic overview of Pakistan’s economic indicators and a few key features of the economy in order to give the participants an idea about the advantages of investing in Pakistan; such as the strategic location, business friendly government with strong reform agenda, ease of doing business, major tariff concessions and the high potential consumer market due to increasing disposable income. She went on to list out investment incentives under the three broad categories financial benefits, business services and basic infrastructure services. 

According to the data she presented the top imports from Sri Lanka to Pakistan are vegetables, wood, MDF, natural rubber, coconuts and cashew nuts, etc. Priority sectors for trade and investment with SL as stated by her are Traditional sectors: Portland cement, textile products, rice and pharmaceuticals; service sectors: construction, textile processing, tourism and hospitality and information technology; non-traditional sectors: surgical and dental instruments, iron and steel products, electrical fans, dates, men’s apparel, paper, leather, wheat and maize and cane sugar.

Kamal’s very informative presentation was followed by that of Riaz Ahmed Shaikh. He commenced his session by explaining the role of TDAP which is the trade promotion organisation in Pakistan- an authority by an act of parliament and works in tandem with the ministry of commerce. He explained that any exporter or importer needs to approach TDAP which will then provide them with the requisite information, facilitation and support as needed. 

In addition to that, TDAP also issues VISA letters, referral letters to embassies, airport passes, certificates of origin, etc.; supports incoming and outgoing delegations and participates in exhibitions around the world. He informed the participants about upcoming virtual exhibitions related to the textile sector that are to be held in the month of November as well as a few seminars on the importance of the free trade agreement (FTA) between SL and Pakistan which will benefit exporters of both the countries. 

Further elaborating on the import and export procedures, Shaikh spoke of the national exporters training program, which is a comprehensive document about export procedures which could be useful for any potential exporter. He concluded by asking any potential exporters who wished for additional resources to visit the TDAP site.

The next session focused on export opportunities under PSFTA. Somasena Mahadiulwewa spoke of the barriers for the foreign market access, the Department of Commerce which functions as the focal point for all free trade agreements in Sri Lanka, elements of FTA such as the Harmonised System Codes (HS Number) and Rules of origin criteria which were explained in brief, the PSFTA, potential products under PSFTA and the current major issues faced by Sri Lanka under PSFTA. The session held a wealth of knowledge for any private sector business considering the prospect of exporting their products and wanting to know what to export and how exactly it works.

The final session under the topic ‘Invest in Sri Lanka’ by Prasanjith Wijayatilake was aimed at potential investors in Sri Lanka. He gave the participants an idea of Sri Lanka’s business environment and also what the economy of Sri Lanka comprises of as an investment destination. He spoke of Sri Lanka’s talented workforce, ease of doing business, competitiveness and productivity, market access and the state of economic recovery in the aftermath of the COVID-19 pandemic. 

He elaborated on the focus sectors which are Pharmaceuticals, food processing, auto components and apparel. He also explained Sri Lanka’s tax structure – which is very investor friendly and business friendly and other investment incentives. In conclusion, Wijayatilake highlighted the services offered by the BOI to potential investors such as research relevant to investment, policy clarification, connection to relevant stakeholders and so on. The gist of the presentation was that there is plenty of space for investment in Sri Lanka if one wished to capitalise on the same.

The final segment which was the Q&A session brought the webinar to a close. The fifth and final panellist G.L. Gnanatheva was introduced as the Consulate General of Sri Lanka in Karachi. He responded to a few questioned posed by the participants about the most demanded exports from Sri Lanka to Pakistan such as betel leaves, fresh coconuts, coconut oil, roofing sheets and gypsum boards. 

He also urged Pakistan policy makers to maintain a consistent trade policy as exporters are discouraged by frequently fluctuating tax rates. A few issues that had not been brought into the spotlight previously were also uncovered during this session and will be discussed in detail over future webinars as promised by TDAP.