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Lessons Drawn From Pakistan-Sri Lanka FTA

Author

Listed:
  • Ahmed, Saira
  • Ahmed, Zafar
  • Sohail, Safder
  • Sarfraz, Irfan
  • Shafqat, Mohammad
  • Mamoon, Dawood
  • Saadia, Hissam

Abstract

There has been an increase in bilateral trade between Sri Lanka and Pakistan in the post – FTA milieu. Today Pakistan is the second largest trading partner of Sri Lanka amongst South Asian economies. There have been some concerns about the negative trade balance for Sri Lanka however the lower prices have resulted in an increase in welfare for both countries. The negative trade balance for Sri Lanka can also be justified on the account that a significant proportion of Sri Lankan imports from Pakistan constitute raw material and related intermediate inputs that in turn lead to efficiency gains. Most noticeable are the over 30 percent imports from Pakistan, currently being used as raw material in Sri Lankan apparel sector. This industry making use of cheaper imports from Pakistan, in turn exports apparel to destinations that include US and EU.

Suggested Citation

  • Ahmed, Saira & Ahmed, Zafar & Sohail, Safder & Sarfraz, Irfan & Shafqat, Mohammad & Mamoon, Dawood & Saadia, Hissam, 2012. "Lessons Drawn From Pakistan-Sri Lanka FTA," MPRA Paper 81488, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81488
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    References listed on IDEAS

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    Cited by:

    1. Prema-chandra Athukorala & Dayaratna Silva, 2019. "The FTA debate in Sri Lanka: Rhetoric and Reality," ASARC Working Papers 2019-03, The Australian National University, Australia South Asia Research Centre.

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    More about this item

    Keywords

    FTA; Trade Facilitation; South Asia;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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