KARACHI, March 16: Pakistan apparel manufacturers are exploring investment opportunities in Sri Lanka amidst reports that the European Union is considering to bring down value addition criterion to 35 per cent for Sri Lanka under the GSP Plus scheme.

Besides textiles, the IT companies and businessmen of other sectors in Pakistan are exploring investment opportunities and developing warehousing facilities for their products in Sri Lanka.

Sri Lanka is gradually assuming a strategic position for Pakistan business because of its status with the EU under the GSP Plus scheme and also because it is a country with which both Pakistan and India have free trade agreements. With compliance of CSI and Megaport initiatives, the Colombo port is getting busier with every passing day and shipping experts now look at as alternative to Singapore.

The bilateral trade between Pakistan and India is restricted to a positive list of items. Bulk of the trade between the two countries is understood to be carried out through Dubai and Singapore or what can be called smuggling through sea channels.

The businessmen of India and Pakistan are now exploring to make Sri Lanka a conduit of trade where joint investment opportunities can also be explored.

Sri Lanka’s close proximity with India and Pakistan, an enviable literacy percentage, a disciplined labour, female participation in industry and commerce jobs, higher labour productivity with additional advantage of enjoying a special status with the European Union make it a perfect location for joint venture projects.

At present a 22-member Pakistan’s trade delegation is visiting Sri Lanka to meet the government functionaries and business leaders besides visiting the industrial areas.

The visit of Pakistan trade delegation precedes the expected official tour of Sri Lankan President to Pakistan sometimes early next month. Pakistan’s bilateral trade with Sri Lanka is not very impressive and compatible with the close political relationship but has maintained a steady growth over last three years.

Pakistan’s exports to Sri Lanka increased from $76.10 million in 2002-03 to $97.84 million in 03-04 and to $155.83 million in 04-05. In the first four months of the current fiscal year Pakistan’s export to Sri Lanka amount to $51.34 million.