Pakistan Reduces Tariff on Sri Lankan Goods

 
Boosting Sri Lanka-Pakistan bilateral trade levels and cooperation, Pakistan has now eased tariffs on three commodities it directly imports from Sri Lanka, a statement from the Industry and Commerce Ministry said here on May 2, 2013.

Tariffs have been increased on three items with the most tax exemptions provided to coconut oil exports from Sri Lanka, the statement said.

Currently, there are 25 projects undertaken by Pakistani investors in Sri Lanka, covering garments, chemicals, petroleum, rubber, plastics, leather products, food and beverages, and tobacco.

"Sri Lanka's import tariffs are a problem for Pakistan. But we have eased our import tariffs on three commodities from Sri Lanka, namely crude coconut oil, betel leaves and bottle cooling machines, " Pakistani High Commissioner Qasim Qureshi was quoted as saying in the statement.

Pakistan imports 5,000-6,000 metric tons of betel leaves annually. Sri Lanka is the largest supplier followed by Thailand, Bangladesh and India. Pakistan is the only single market for Sri Lanka's betel leaves.

Pakistan has reduced the Sri Lankan betel import tariff by 35 percent.

Pakistan has also reduced tariff on Sri Lankan crude coconut oil by 50 percent and with effect from July, the crude coconut oil duty waiver will be 100 percent.

Followed by India, Pakistan ranks as the second largest buyer of Sri Lankan products in South Asia, accounting for about 10 percent of Sri Lanka's total exports to the region.

Bilateral trade between both countries experienced a substantial growth after the Free Trade Agreement was implemented in 2005.

Total trade which stood at 158 million U.S. dollars in 2005 rose to 433.69 million U.S. dollars in 2012, showing a strong 174 percent growth.