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KARACHI, Mar 10 (APP): Lack of direct shipping service, congestion at Bangladesh ports and slackness in payment of L/Cs by Bangladeshi banks on their maturity are amongst the major blockades in growth of bilateral trade of Pakistan and Bangladesh.
The meeting between Deputy High Commissioner of Bangladesh in Karachi, Mohammad Allama Siddiki, and members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here at Federation House recommended that instead of Singapore and Arabian countries, Colombo should be made a transitional shipping point for goods to be traded between Bangladesh and Pakistan.
The Bangladesh envoy expressed satisfaction over the progress towards free trade agreement (FTA) between the two countries which, he said, would hopefully become operational in September this year.
"Pakistan Commerce Minister, Humayun Akhtar is scheduled to visit Bangladesh this month for furthering the agenda of FTA," he said.
Allama Siddiki said the growth of trade under South Asian Free Trade Agreement (SAFTA) would depend on regional politics especially the peace between Pakistan and India.
"Attitude of our big neighbours would count in the success of SAFTA. Of seven member states of SAARC, we five are totally dependent on land access from India to trade with each other," he said.
He said Bangladesh was safe place for investors and there were great opportunities for Pakistani businessmen to enter joint ventures in various areas i.e. textiles and pharmaceutical sectors.
He told the FPCCI members that both the governments had agreed to increase tea export to Pakistan from Bangladesh up to 15,000 tones from 10, 000 per year.
However, he said, the notification in this regard from Pakistan side was awaited.
When Acting President of FPCCI Akbar Abdullah drew his attention to high price of Bangladesh tea, the diplomat said the price varied due to production cost.
Our gardeners lacked interest in production of tea and they had added very little number of new plants to their gardens over last 15 to 20 years. However, he said, now they have started new plantation, which would improve the situation in next 2 to 3 years. Tea plants survive for many years, he said.
He said jute industry in Bangladesh was being re-organised as polythene items could not replace jute products.
International Jute Organisation (IJO) had been revived and 16 states including China, Thailand and India had joined it once again.
"Pakistan has promised to become IJO member," he said.
He observed that Pakistan economy was prospering and economically strong Pakistan was in favour of boosting trade ties with Bangladesh and other countries in the region.
Akbar Abdullah, who led FPCCI side, said although the current trend of bilateral trade of Pakistan and Bangladesh was encouraging, yet the trade volume of 267 million dollars during 2004-05 -- $ 206 million exports from Pakistan and $ 61 million imports - accounted for only 1.5 per cent share in our total trade. It neither reflected the real magnitude of our amicable relations nor the potential available.
Pakistan being the third largest consumer of tea, with a market of around 200 million dollars, could be the biggest buyer of Bangladeshi tea.
He said besides traditional trade, there existed huge potential for joint ventures in the sectors of food, corporate farming, telecommunication, information technology, software development, tourism, banking, education and health. This proposed arrangement would further strengthen economic ties between the two countries.
Akbar Abdullah said the FTA between Pakistan and Bangladesh would ensure hassle-free trade between the two neighbouring countries.
He called for implementation of FTA in letter and spirit to reap maximum mutual benefits.
He said the signing of four MoUs between the two governments on agriculture , tourism , promotion of exports and standard and Quality-testing institutions would also gear up economic cooperation between the two nations.
He informed that FPCCI had planned to establish a Joint Venture Company with Federation of Bangladesh Chambers of Commerce and Industry for promoting small and medium enterprises in both the countries.
"We should complement each other's economy," he stressed.
He informed that FPCCI's high-level delegation was scheduled to visit Bangladesh soon.
Chairman, FPCCI 's standing committee on pharmaceutical, Mushtaq Noorwala proposed an arrangement between the two countries for trade of pharmaceutical items. Pakistan had 300 pharmaceutical units of international standard and Bangladesh had also strong pharmaceutical industry with an export market of 16 countries.
Chairman, FPCCI's Pak-BD Business Council, Ashfaque Ahmed Shaikh deliberated upon wide range of issues of influencing the bilateral trade.
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