Sri Lanka, Pakistan agree to expand FTA
Sri Lanka and Pakistan have agreed to expand their bilateral free trade agreement (FTA) by inclusion of services and investment.
Statement in this regard was made by Pakistan Prime Minister Nawaz Sharif during his official visit to Sri Lanka. The expansion of FTA would help companies of the two nations to form joint ventures (JV) for exports to other nations.
Pakistan Prime Minister Nawaz Sharif’s official trip to Sri Lanka comes after eight months of President Sirisena’s visit to Pakistan in April 2015.
Sri Lank-Pakistan Free Trade Agreement (FTA)
- The FTA between Sri Lanka and Pakistan came into effect in June 2005. Since the Pakistan’s exports to Sri Lanka were to the tune of 150 million dollars.
- Sri Lanka’s exports to Pakistan were valued at about 52 million dollars, accounting for around 70 per cent of the country’s total exports to Pakistan.
8 MoUs signed
- Both countries also signed 8 agreements in the fields of science and technology, education, agriculture, healthcare, tourism, cultural exchanges, sporting contacts, people-to-people contacts and combating money laundering and terror financing.
- Pakistan also sealed a landmark defence deal to sell JF-17 Thunder fighter jets to Sri Lanka.
- Under this deal Pakistan will sell 8 JF-17 Thunder fighter jets which are already part of Pakistan Air Force (PAF).