Within a year the Trade Development Authority of Pakistan (TDAP) – the top government body responsible for promoting exports – is aiming to increase Pakistan’s exports to Sri Lanka to $500 million from the current $267 million. A FTA between the two countries came into effect in 2005, but is not being utilised to its full potential.
The trade balance is heavily in favour of Pakistan. Its exports to Sri Lanka amounted to $267 million while Sri Lankan exports to Pakistan were worth just $58 million, according to the Pakistan Bureau of Statistics data (2014-15). Vegetables are notable among the items being exported by Pakistan.
“Pakistan can easily double exports to Sri Lanka in a year’s time by effectively using the duty concessions under the Free Trade Agreement (FTA),” said TDAP Secretary Rabiya Javeri Agha in an interview with The Express Tribune.
The Pakistan Business Council (PBC), a not-for-profit research-based business advocacy forum that represents Pakistan’s 47 largest businesses, noted that Pakistan and Sri Lanka had the potential to increase bilateral trade over six times to $2.7 billion by just effectively utilising the FTA.
