Karachi, Consul General of Sri Lanka in Karachi, Jagath Abeywarna, has highlighted the persistently low trade volume between Sri Lanka and Pakistan, which stands at US$440 million, despite a long-standing Free Trade Agreement (FTA) and 75 years of diplomatic relations.

According to Karachi Chamber of Commerce & Industry (KCCI), the trade volume between the two countries remains modest, with Pakistan’s exports to Sri Lanka at US$360 million and Sri Lankan exports at US$80 million. Abeywarna pointed out that barriers hindering trade need to be addressed, and both countries, currently facing economic challenges, should collaborate more closely to overcome the ongoing crises.

The Consul General underscored the need for revisiting the FTA and establishing mechanisms to facilitate transactions between exporters and importers, especially in the context of foreign currency shortages. He emphasized the significance of private sector collaboration, including participation in trade fairs and exchange of trade delegations, to bolster trade relations. Abeywarna also mentioned potential sectors for trade enhancement, such as pharmaceuticals, fabrics, leather, construction materials, and agricultural products.

During the meeting, which was attended by President KCCI Iftikhar Ahmed Sheikh, Senior Vice President Altaf A. Ghaffar, Vice President Tanveer Ahmed Barry, Former President Majyd Aziz, and other committee members, the 75th anniversary of Sri Lanka-Pakistan diplomatic relations was celebrated. The Consul General lamented the shift in Pakistan’s import preferences for tea, once a major Sri Lankan export to Pakistan, now being sourced from Kenya and other countries.

President KCCI Iftikhar Ahmed Sheikh, while welcoming the Sri Lankan CG, expressed concern over the stagnant exports from Pakistan to Sri Lanka. He highlighted the need for both countries to work together in expanding their domestic markets and establishing a Free Trade Area. Sheikh also proposed a two-way currency SWAP arrangement to alleviate the dollar shortage and strengthen financial cooperation between the two nations.

The discussions at the KCCI meeting focused on enhancing bilateral trade and economic cooperation, recognizing the need for strategic measures to realize the potential of the FTA and strengthen the economic relationship between Sri Lanka and Pakistan.