ISLAMABAD: The Minister for Commerce Engr Khurram Dastgir, Monday, reiterated Ministry of Commerce’s (MoC) determination to incorporate few new chapters in the agreement to further expand the jurisdiction of Pakistan and Sri Lanka Free Trade Agreement (PSFTA).
Bilateral trade between Pakistan and Sri Lanka both the countries in 2013-2014 was US $ 322.172 million. Pakistan exported worth US $ 260.239 million to Sri Lanka against imports of US $ 61.933 million.
“The said chapters are called Comprehensive Economic Partnership Agreement (CEPA) and subjects of services, investment and customs cooperation will be included in PSFTA as future roadmap for making it more effective and result oriented” a well placed source at MoC told this scribe here on Monday.
Khurram Dastgir in a meeting with the visiting Sri Lankan President Maithripala Sirsisena apprised the worthy guest about Ministry’s intentions in this regard.
He observed that service provision was often an economic activity where the buyer did not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased.
The benefits of such a service, if priced, are held to be self-evident in the buyer’s willingness to pay for it. Public services are those that society (nation state, fiscal union, regional) as a whole pays for, through taxes and other means.
By composing and orchestrating the appropriate level of resources, skill, ingenuity, and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying inventory (stock) or the need to concern themselves with bulky raw materials.
On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition.
Moreover, the visiting President was further informed that investment was time, energy, or matter spent in the hope of future benefits actualized within a specified date or time frame.
Investment has different meanings in economics and finance. In economics, investment is the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories. In finance, investment is putting money into an asset with the expectation of capital appreciation dividends, and/or interest earnings.
This may or may not be backed by research and analysis. Most or all forms of investment involve some form of risk, such as investment in equities, property, and even fixed interest securities which are subject, among other things, to inflation risk .It is indispensable for project inventors to identify and manage the risks related to the investment.
Similarly, Minister further apprised the Sri Lankan President that Customs Cooperation set out the terms and requirements for Members to share information in order to ensure effective customs control, while respecting the confidentiality of the information exchanged.
It also allows Members flexibility in terms of establishing the legal basis for information exchange. Members may enter into or maintain bilateral, plural-lateral or regional agreements for sharing or exchanging customs information and data, including advance information.
MoC is of the view point that the inclusion of above mentioned subjects in the PSFTA can benefit both the countries which already have friendly bilateral economic and trade relations. Both the countries enjoy economies full of energy and capacitated with required requisition for robust uplift.
In the meantime an official hand out about meeting between Minister for Commerce with Sri Lankan President stated that both sides agreed to take further necessary measures to boost the bilateral trade to $ 1 billion .
Both the leaders observed that Pakistan and Sri Lanka were linked by strong bond of friendship and share similar stance on important regional and international issues.
As members of SAARC both countries have made positive contributions towards peace and regional stability. This positive outlook and mutual understanding that brings both the countries even closer.
The minister added that the Year 2015 marks the completion of a decade of Free Trade Agreement with Sri Lanka. These years witnessed not only strengthening of trade ties between the two countries but Sri Lanka emerged as a potential market for Pakistani exports. Pakistan concluded a FTA with Srilanka in 2002.
Under this bilateral free trade agreement, both sides agreed to establish a free trade area with the elimination of tariffs on goods and services. This FTA became operational from June 2005.
Major exports from Pakistan include rice, fish, cotton yarn, cotton fabrics, pharmaceuticals, knitted fabrics, iron and steel. Major imports from Srilanka are tea, fruits, vegetables, oil seeds and crude rubber.
Pakistan and Sri Lanka enjoy cordial relationship and have been quite active in facilitating bilateral trade. Both the countries interact regularly at forums of PSFTA and Pak-Sri Lanka Comprehensive Economic Partnership Agreement (CEPA) to further enhance the bilateral trade and deepen the mutual ties. Trade in services, investment and customs cooperation define the future road map for Pak-Sri Lankan economic partnership.