Regulatory Duty imposition affects Pak-Sri Lanka trade

Regulatory Duty imposition affects Pak-Sri Lanka trade

Regulatory duty imposition is affecting trade between Pakistan and Sri Lanka, this was stated by the Consul General of Sri Lanka, G. L. Gnanatheva.

Gnanatheva’s remarks were made during his visit to the Karachi Chamber of Commerce & Industry (KCCI). He noted that the sudden imposition of RDs by Pakistan has greatly affected Sri Lankan exporters’ interest in enhancing trade and exploring the Pakistani market further. Uncertainty regarding trade policies in Pakistan has discouraged Sri Lankan exporters from taking initiatives to boost trade relations.

The meeting was attended by President KCCI Junaid Esmail Makda, Vice President Asif Sheikh Javaid, Chairman KCCI’s Diplomatic Missions & Embassies Liaison Subcommittee Shamoon Zaki, and Managing Committee Members.

Sri Lankan Consul General stressed the need for both Pakistan and Sri Lanka to collaborate and improve the existing trade volume by identifying additional trade opportunities and defining a clear roadmap for growth in trade, investment, and exports. He mentioned that Sri Lanka was the first country to sign a Free Trade Agreement (FTA) with Pakistan in 2005, which was considered the most successful FTA, offering numerous benefits to businesses in both countries. However, these benefits have remained underutilized by both sides.

Gnanatheva suggested organizing a forum where the business communities of Pakistan and Sri Lanka could identify obstacles and untapped trading potential. The aim is to familiarize businesses with the benefits under the FTA and explore ways to enhance it for mutual benefits.

President KCCI, Junaid Esmail Makda, acknowledged Sri Lanka’s concerns about the imposition of RDs and assured that the Chamber would convey these concerns to relevant authorities in Islamabad to facilitate an amicable resolution. He also mentioned the economic relations between Pakistan and Sri Lanka, highlighting that both countries share cordial bilateral relations and cooperation in various economic sectors. Despite some improvements, the overall trade volume remains below its potential and requires joint efforts from both sides to increase it.

The challenges highlighted by the Sri Lankan Consul General underscore the importance of addressing trade-related issues to boost economic cooperation between the two nations and unlock their full trade potential.