Paradise lost
Not many years ago, Sri Lanka was a TRANQUIL KINGDOM, resplendent in serenity and beauty. Absolute calm prevailed in the island, peace was almost synonymous with the country’s name. Geographically juxta-positioned at a strategic location, Sri Lanka is at important crossroads in the highways of the oceans, advantageously placed for commercial traffic, somewhat like a larger Singapore. Blessed with natural harbours and a fertile land, the nation’s very merits placed it on a high priority HIT LIST of a covetous neighbour. The unfortunate target of blatant internal interference, there is now only conflict in this troubled land, an internal strife that has brought the economy to a virtual standstill, on the verge of being shattered. With the North and parts of the East in open rebellion, President Jayawardene of Sri Lanka had few options left and he chose to go the bitter course of the Indo-Sri Lankan Accord, a sorry PAX INDIA-NA, the final chapter of which has yet to be written. The optimistically named Indian Peace Keeping Force (IPKF) has suffered enough losses in men, material and morale to justify the adage, “those who sow the wind shall reap the whirlwind.”
There is tremendous goodwill among the people of Sri Lanka for Pakistan, the reaction and backlash of public opinion against hated India has tended to make this affection much deeper and stronger than is manifest to the ordinary Pakistani. Indian blunders (the pitfalls of a ham-handed occupying army modelled on Inspector Clouseau) have acted as a further catalyst in coalescing a groundswell of pro-Pakistan feeling. Our Embassy in Sri Lanka has done exceedingly well in this respect and this is apparent in the attitude of a cross-section of the Sri Lankan people, politicians, businessmen, bureaucrats, servicemen, the man in the street, all included.
Very much like Bangladesh, Sri Lanka is a tremendous market for Pakistani goods and commodities. On the reverse side, at least till 1980, Sri Lanka supplied most of the commodities that were originally coming from former East Pakistan to West Pakistan pre-1971. A wide range of our exports can go to Sri Lanka, provided our two-way trade is planned and executed in a methodical manner. The agreement must cater for all the modalities envisaged and the modus operandi for executing the agreement smoothly.
Pakistan’s present exports to Sri Lanka are limited to commodity items such as onions, dried fish and rice besides the derivatives of raw cotton such as cotton cloth and yarn. The value of salted and unsalted dried fish has shown a gradual rise, the quantity increasing from about one million kgs in 1982/83 to approx 11 million kgs in 1985/86. Similarly onions showed a gradual rise to about 7 million kgs before falling sharply in 1985/86 due to domestic shortfall in Pakistan. Dried dates showed a constant increase as did dried chillies. What was most surprising was the meagre quantity of raw cotton that went to Sri Lanka from Pakistan. Carbon Black went in substantial quantity and so did the usual export of betel nuts which increased considerably.
Cotton cloth showed a steady increase but was nowhere near the quantities that is really Sri Lanka’s demand. Similarly cotton yarn remains a major export but is not satisfactory considering the actual potential possible.
One significant development was the export of power looms from Pakistan to Sri Lanka. Small scale industries are a must for Third World countries and the power loom industry needs to be developed to cater for the manufacture of grey cloth for various requirements, extending from finished cloth to canvas and cotton bags.
Various sectors in which exports from Pakistan can play a vital role have yet to be explored. The internal strife in Sri Lanka has exposed the limitations of the communications sector, development targets can be set in telephone, railways, roads and transportation. In order to renew the economy, major effort has to be laid in these areas and Pakistan with its developed industries can help a great deal to not only address the retardation of normal growth but to make a significant contribution which will have a commensurate expansion effect on the economy.
Pakistan’s great capacity to produce Third World-oriented machinery has not been exploited vis-a-vis Sri Lanka. It makes sense for our machinery items, less sophisticated in manufacture, to be of wide utility throughout the country. Our power looms, low-level lift pumps, electrical switchgear, sugar and cement machinery all can find a sympathetic market, provided there is effort from both the sides, from the Sri Lankans to accept the less than sophisticated quality and a sustained market effort from our side.
At this point of time, there is a favourable trade balance of US$25 million in Pakistan’s favour with about US$ 50 million worth of goods and commodities going to Sri Lanka and only US$ 25 million being imported reciprocally.
During the early 1970’s the Sri Lanka market share for tea in Pakistan was approximately 60%. This has alarmingly declined to less than 10% or approximately worth US$ 12 million. Considering that the price of Kenyan tea is almost double that of Sri Lanka and Bangladesh, this is a very sorry state of affairs. From a high of 17 million kgs in 1981-82 the tea quantity has dropped to less than 8 million kgs, while tea consumption in Pakistan has gone up. On a rough scale, Pakistan should purchase at least 25% of its requirements from Sri Lanka. This would amount to about 25 million kgs worth about US$ 37.5 million. Can anyone let me know what Kenya imports from Pakistan? If we have to purchase tea it must be strictly according to the national tea trade policy so that our manufacturers/exporters can sell quantities of commodities and machinery against that purchase. The countries that we must favour in this respect are Bangladesh, Sri Lanka and China followed by Indonesia. We must not allow the multi-nationals like Brooke Bond and Liptons (the monopoly of LEVER BROTHERS) to circumvent the trade policy. If at all tea comes from Kenya, we should impose a further LUXURY TAX of 15% for it is a luxury to drink Kenyan Tea.
Sri Lanka’s second major export to Pakistan is sheet rubber, worth approximately US$ 5 million annually. We could restrict the import of sheet rubber from Singapore and Malaysia without effecting our trade with them and increase the purchases from Sri Lanka.
Pakistan is virtually the only market for Sri Lankan copra and broomstick. Approximately 50% of the total imports into Pakistan worth about US$ 3-4 million comes from Sri Lanka, the rest from Malaysia and Seychelles. We could, at the expense of Malaysia, which exports US$ 300 million worth of palm oil to us without much reciprocity, increase the quantity from Sri Lanka.
Increases can be pushed for coconut and coconut oil. Similarly betel leaves which had once a more than 50% share of the Pakistan market has lost out to Thailand. This import needs to be improved while we could substitute other imports from Thailand. The small amount of spices, presently coming from Sri Lanka can be further increased.
As for Bangladesh, we find ourselves in a positive total trade ambience with Sri Lanka but without a methodical plan to exploit this potential to mutual benefit. There has been quite a bit of cooperation between Sri Lanka Cooperative and Wholesale Establishment (CWE) and Trading Corporation of Pakistan (TCP). This needs to be augmented systematically to balance the trade to take advantage of each other’s strengths.
Pakistan and Sri Lanka trade should stand in the region of US$100-125 million each way i.e Pakistan can and must increase the exports to double its present figures and Sri Lanka should go in for a FOUR FOLD increase. One of the ways to do it is already in place, courtesy the national tea trade policy and a forward-looking tea purchase agreement by TCP linked to reciprocal exports from Sri Lanka. This concept needs to be refined into practical shape. The Sri Lankans are a fraternal and brotherly people who look towards Pakistan as a ray of hope beyond the heavy-handed, unwanted Indian presence in the North and East of their country. All Indian encroachments have a twin purpose of Empire-building and economic dominance. Maybe it is logistically impossible for us to physically support the Sri Lankan struggle to remain independent of India, but it is extremely possible to frustrate their nefarious designs to have a slave Sri Lankan market for trade. Our economic support by developing an intensive two-way trade will greatly help Sri Lanka from sliding into economic dependance while giving us double benefits, of trade and a friendship beyond par.
Paradise as it once was has certainly been lost. It is not possible for the dream that was once a reality to return. What can happen is a return to sanity helped along by the support of friends like Pakistan. If friendship be the aim, trade is a supreme weapon to forge unbreakable bonds.
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