EDB stages seminar on ‘Export opportunities in the Pakistan market’

The EDB organised a seminar on ‘Export opportunities in the Pakistan market’ with the objective of increasing awareness of the market opportunities available in the Pakistan market for Sri Lankan products. 

The seminar was held on 28 June at the EDB auditorium with the participation of over 100 industrialists. 

The seminar covered areas of business opportunities in Pakistan, concessions available under PSFTA, industry experience in doing business with Pakistan and also shared the information of the desk research conducted by EDB and the findings of the study done by the Sri Lanka Consulate General in Karachi on Sri Lanka Tea in the Pakistan market.

Acting Pakistani High Commissioner Dr. Sarfraz Ahmed Khan Sipra said that Sri Lanka-Pakistan friendship is very important and explained the potential for the development of trade between the two countries. 

Pakistan High Commission Commercial Secretary Adnan Younis Lodhi said that the progress of the FTA has now stagnated and that there is a need to agree on a deeper FTA with more product coverage along with the Services and Investment chapters if we wish to see faster growth in economic relations. He also announced that Sri Lanka has been granted ‘Guest Country’ status at the Expo Pakistan exhibition to be held in Karachi in November 2017. This is the first occasion that Pakistan recognised a foreign country as the ‘Guest Country’ and this was granted to Sri Lanka under the MoU between EDB and the Trade Development Authority in Pakistan.

Department of Commerce Deputy Director G.L. Gnanatheva provided detailed information on the Pakistan- Sri Lanka Free Trade Agreement, its utilisation and trends in the consumer behaviour of Pakistan towards our main exports of betel leaves, tea, etc. 

Pakistan-Sri Lanka Business Council President Rohitha Thilakaratne stressed the need of visits of regular trade delegations and exhibitions in order to create stronger relationship between the two countries’ business communities. Sri Lanka-Pakistan Friendship, Trade and Investment Association President Ifthikhar Aziz also shared the experiences of working with the Pakistan business community and the opportunities available for Sri Lankan companies in Pakistan.

Exports to Pakistan were less than 1% of Sri Lanka’s total exports to the world. Sri Lanka needs to increase exports and expand production facilities where there is potential for trade. In addition to the present exports, electronic and electrical components, value added rubber products, porcelain products, paper products and processed food. Gems and jewellery can be identified as potential products for exports to Pakistan. There are products for which there is high demand in Pakistan and adequate production in Sri Lanka, but lesser tariff concessions under the FTA. Therefore, it is needed to develop strategies to explore opportunities in the Pakistan market for these products.

The Pakistan-Sri Lanka Free Trade Agreement (PSFTA) came into force on 12 June 2005. Pakistan implemented its final phasing out commitment and Sri Lanka now has duty free market access for more than 4,500 products. Approximately over 7,000 Certificates of Origin are issued annually under the PSFTA for Sri Lankan companies.

Sri Lanka’s export to Pakistan, which was $ 43 million in 2005, has marginally increased to $ 64 million in 2016. However, Sri Lanka’s imports from Pakistan, which was $ 116 million in 2005, has increased to $ 281 million in 2010, $ 297 million in 2015 and $ 304 million in 2016 with an average growth of 9% during the 2005-2016 period (source: Sri Lanka Customs). 

The major export products to Pakistan are tea, betel leaves, coconuts, wood charcoal, pepper of the genius piper, etc. Sri Lanka’s export product basket needs to be diversified to Pakistan as Sri Lanka’s main exports products in the primary form, earning lower value export value. Only a few new products entered the Pakistan market, including paper products and finished rubber products.

During the seminar, Sri Lankan companies of the herbal cosmetic sector, fisheries sector, aquarium fish sector and tea and rubber tyre sectors raised their concerns mainly in the areas of FTA concessions, market access and the potential in the Pakistan market for their products.

Sri Lanka is aiming to achieve export earnings of $ 20 million in 2020. To reach this target, the PSFTA should be exploited strategically considering that Pakistan is the second largest economy in South Asia. 

The EDB has planned a series of activities to increase exports to Pakistan. As a first step EDB did market research on the Pakistan market for selected potential products with the assistance of a research consultancy company. The ultimate objective of this study is to identify a strategy to penetrate the Pakistan market for the selected Sri Lankan products and create a linkage between the Sri Lankan companies and the Pakistani buyers. 

These findings will be disseminated later to the Sri Lankan companies through an information seminar and also by publishing them on the EDB website. The Sri Lanka country pavilion will be organised with the participation of a group of Sri Lankan companies at the Expo Pakistan exhibition in Karachi, in November this year. 

A business forum and B2B session will also be arranged to coincide with our participation at this exhibition in Karachi. Therefore, the interested companies could participate in the Expo Pakistan exhibition and other parallel events in Pakistan in November 2017.