Bilateral trade between Pakistan and Sri Lanka is not operating successfully under the Free Trade Agreement (FTA) due to high import duty on the imports of certain items from both the sides.
A source told Business Recorder here on Tuesday that according to Sri Lanka, Pakistan has imposed high duty on the import of betel nut and betel leaf, as Pakistan already claimed that it was important source of revenue, therefore, it would be difficult to curtail.
Pakistan on the other side said that Sri Lanka has levied high import duty on Pakistani onion, potato and rice.
The source said that Pakistani high commissioner is continuously in contact with the Sri Lankan importers and stakeholders to facilitate in resolving the issue, and to make trade more liberal.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Mian Arshad Alam's recent visit to Sri Lanka was part of this agreement, the source said.
The office-bearers of the Federation of Sri Lankan Chamber of Commerce and Industry and Ceylon Chamber of Commerce had viewed that Sri Lanka was interested to boost trade with Pakistan as it was more viable for them as compared to India with respect to quality and price.
Delay in signing of preferential trade agreement with Sri Lanka was due to this issue, the source said.
He said that the possibility of a meeting between the two countries on this Preferential Trade Agreement (PTA) was expected in near future and that both the countries would try to settle the issue as soon as possible.
The source also said that both the countries were also interested in exchanging negative lists.