President Zardari's Sri Lanka visit last year at the head of a high-powered team has resulted in the signing of a string of agreements and MoUs the essential thrust of which is towards broader mutual engagement that involves bilateral trade, joint investment and innovative bilateral initiates to structure a mutually beneficial partnership. President Zardari has offered to Sri Lanka barter trade in natural resources, in which both the countries are rich, though both of them are going to benefit tremendously.
The second plank of the bilateral trade strategy is the two countries could engage in barter trade without tying it up with dollar, which has its own complications. As the president has said, it will be a win-win situation for both sides.
Under the bilateral trade offer made by Pakistan lies a strategy under which capital can be repatriated, but not the profit, which would be compulsorily retained, to be reinvested in Sri Lanka. This will help dispel the impression that Pakistani investor is a fly-by-night operator, an unfortunate impression that seems to have consolidated over a period of time, thanks to the questionable activities of certain individuals. Secondly, it will signal Pakistan's long-term commitment to peace and prosperity in Sri Lanka that can help cement mutual trust.
A unique feature of the array of agreements Pakistan and Sri Lanka have signed is that these accords have been concluded on the basis of mutual respect and equality, and not on a patron-client pattern, which has mostly dictated by Pakistan's ties with other countries, mostly developed countries. Secondly, neither will there be an element of dictation by either side, which will help promote mutual benefit and respect. There is a need to conclude more of such agreements with other regional states side by side with our mutually beneficial relationship with western countries. There is a need to achieve the widest possible diversification in our trade and commercial ties, patterned on Pakistan-Sri Lanka ties we are planning to develop. President Zardari's visit to Sri Lanka has apparently been quite successful, though it will depend on the final outcome.
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