ISLAMABAD, April 1: Pakistani textile manufacturers will be extended maximum facility in the establishment textile units in Sri Lanka to get maximum benefits from the European Union’s generalized system of preferences (GSP) plus scheme. “We want Pakistani businessmen to set up textile units in Sri Lank as it is the only country in the region which enjoys this facility. We cannot meet the textile and clothing demand of EU member countries under the GSP scheme effective from January this year,” said Sri Lankan Minister for Trade, Commerce and Consumer Affairs Jeyaraj Fernandopulle while speaking at a breakfast meeting hosted by the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) here on Saturday.
Sri Lankan President Mahinda Rajapaksa also attended the meeting but he declined to spoke on the occasion. However, he held individual interaction with Pakistani businessmen.
The main focus of discussion was to convince Pakistani businessmen to set up textile industries in Sri Lanka as Pakistan could not qualify for the GSP plus scheme — zero rate of duty to the EU market. The Sri Lankan president will address businessmen in Karachi on Sunday in this regard as well.
The Sri Lankan side also offered to set up a dedicated GSP plus investment zone.
Mr Fernandopulle said there was a tremendous scope for increasing bilateral trade between the two countries under the free trade agreement (FTA) which was effective from last year. He disclosed that under FTA with India, bilateral trade between Sri Lanka and India rose to $2 billion from $500 million.
The minister said his country had offered a credit facility of $10 million to the Pakistani importers to facilitate the import of products from Sri Lanka.
Meanwhile, a detail presentation was made by a senior official of the Sri Lankan Board of Investment to highlight the opportunities available for Pakistani businessmen in textile and other sectors.
FPCCI President Ch Muhammad Saeed said that currently 17 Pakistani companies with Rs380 million investments were operating in Sri Lanka, which reflected the aspiration of the private sector of Pakistan to enhance economic cooperation with Sri Lanka.
“It is our perception that the implementation of Safta and FTA between the two countries would not only enhance regional and bilateral trade manifold, but would also pave the way to face the challenges of globalization,” he added.
He said that there existed huge potential in the food sector, corporate farming, telecommunication, information technology, software development, tourism, banking, education and health.
Both the countries, he said, through the establishment of joint ventures in the mutually interested areas could further boost bilateral economic relations.
He said that the share business, which had been gaining momentum in Pakistan, could be harnessed for attracting bilateral investment. “We suggest the floating of companies at the stock exchange on reciprocal basis,” said Mr Saeed.
