Pakistan and Sri Lanka are likely to ink Free Trade Agreement (FTA) during the meeting of Sri Lankan President Chandrika Bandaranaike Kumaratunga with Prime Minister Shaukat Aziz here. The Sri Lankan President, who is currently on a visit to Pakistan, will also discuss economic and trade ties with the high officials. This would facilitate trade between the two countries on win-win basis after exchanging the negative lists of commodities on which both Sri Lanka and Pakistan have agreed before signing the FTA.
Signing of this agreement to facilitate bilateral free trade between the two countries was delayed due to high tariff on the import of certain items from both the sides.
According to Sri Lanka, Pakistan has imposed high duty on the import of betel nut and betel leaf which, for Pakistan, is an important source of revenue.
Pakistan on the other hand said Sri Lanka has levied high import duty on Pakistani onion, potato and rice.
Negotiations at diplomatic level and exchange of trade delegations contributed towards resolving thorny issues and these efforts paved the way for signing the agreement.
In parallel, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in past few months was also in contact with Sri Lankan importers and other stakeholders to help solve the issue.
Federation of Sri Lankan Chamber of Commerce and Industry and Ceylon Chamber of Commerce also viewed that trade with Pakistan was more viable as compared to India with respect to price and quality.
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