FTA to boost Pak-Sri Lanka economic co-operation: Kumaratunga meets Musharraf

Pakistan and Sri Lanka on Tuesday expressed the hope that coming into operation of Free Trade Agreement (FTA) between the two countries would open a new era of trade and economic co-operation to their mutual benefit. 0President General Pervez Musharraf and visiting Sri Lankan counterpart Chandrika Kumaratunga told newsmen after formal talks that both the South Asian countries stand to gain enormously from bilateral free trade.
"The FTA will impart a tremendous boost to our economic and commercial ties, we will identify areas for developing greater economic co-operation, this will certainly be beneficial for both," President Musharraf said at Aiwan-e-Sadr.
The Sri Lankan leader reciprocated his views, emphasising that Colombo sees FTA with Pakistan as a major development in its relations and believes that it would take its bilateral trade to higher level.
President Musharraf expressed Pakistan's dismay and disappointment over the postponement of the 13th Saarc Summit.
Pakistan believes that we need to inject more seriousness into Saarc, which is for the benefit of all South Asian countries. Postponement of summits does not augur well for the effectiveness of this organisation," he said.
He suggested that there should be some formulations where no postponements are possible, saying all the member countries should work collectively to decide about it.
"If somebody does not want to attend, they should not, the others should attend - why should any one country have the onus of postponing or scuttling the whole meeting.
"We feel that because of the frequency of postponements we have been over the last few years, we need to collectively decide on what course needs to be taken, so that such postponements do not occur in future."
In her remarks, President Kumaratunga expressed the hope that new dates for the Saarc Summit would soon be worked out and the regional body would move forward for the economic well-being of the South Asian nations.
Referring to peace process between Pakistan and India, she said, improvement in their bilateral relations would augur well for regional economic co-operation.
The Sri Lankan leader commended President Musharraf's efforts for establishment of peace in the region.
"We would like to commend very sincerely President Musharraf's efforts at resolving the burning issue of region, that is issue of Kashmir between India and Pakistan."
She also lauded Pakistan's key role in the fight against terrorism.
"We too have been facing this problem in our country and making efforts for peace. At the moment the cease-fire is holding between rebels and the government.
"We wish President Musharraf and Pakistan success in their counter-terrorism drive."
President Musharraf also briefed the visiting leader about Pakistan-India peace process and the composite dialogue.
"Our efforts move in tandem on the confidence-building measures and the dialogue process going on between both the countries.
"Pakistan is very serious in moving forward on the betterment of relations between India and Pakistan so that the entire South Asian region benefits from it through the resolution of disputes to the mutual benefit of the people of the region," President Musharraf said.
Both the leaders said the two countries enjoyed excellent relations in political field and the area of defence co-operation. President Musharraf expressed the hope that Kumaratunga's visit would further deepen bilateral ties.
The Sri Lankan president thanked the government and the people of Pakistan for extending immediate help for tsunami victims.
Pakistan's relief assistance was greatly helpful in overcoming the initial difficulties, she said, while appreciating Pakistan's rapid response to the Sri Lankan suffering, she said.
President Musharraf assured the visiting leader of Pakistan's continued support to Sri Lanka and expressed grief and sorrow over the tsunami tragedy.
Meanwhile, Commerce Minister Humayun Akhtar and Sri Lankan President Chandrika Kumaratunga discussed bilateral trade relations, including Free Trade Agreement and agreed to strengthen these in the days to come.
Holding of a single country exhibition in Sri Lanka also came under discussion.
He said the visit of the Sri Lankan president was an historic event and both the countries would exchange diplomatic notes to initiate a bilateral Free Trade Agreement (FTA). This would be the first FTA of Pakistan with any country.
He said the FTA was the beginning of deeper economic and commercial relations with Sri Lanka and would take this process further by undertaking negotiations on trade in services and investment.
The commerce minister proposed single country exhibitions after operationalising the FTA.
The Sri Lankan president welcomed the proposal and assured co-operation to Pakistan in holding the single country exhibition in Sri Lanka.
Kumaratunga invited Humayun to visit Sri Lanka to further strengthen the existing trade relations.
Both the sides agreed to increase trade relations to their maximum potential.