Pakistan's Arif Habib Group Goes for Commodities and Trade Consultancy in Sri Lanka. A Boost to Bi-lateral Trade

28th March 2013, www.lankabusinessonline.com

Pakistan's Arif Habib group which has a stock brokering unit in Sri Lanka is planning to expand into commodities and trade consultancy which can boost bi-lateral trade, an official said.

In Pakistan he said there was a strong push from authorities for Pakistani businesses to go to Sri Lanka.

"As one of the largest Pakistani groups there are a lot of opportunities," Beg said. "Pakistan and Sri Lanka have had very strong ties.

"The political relationships are very strong, the bureaucratic relationships are very strong. And in every way possible both countries have supported themselves.

"So why can't there be a strong commitment on trade as well."

Beg, who is the son of a group director took over the reins at Serendib Stockbrokers last year and says Arif Habib group is also putting money into stockbrokering, which was the first business, the group when it started.

He says fresh capital has been injected, the balance sheet has been cleaned and the group will continue to put resources to build the business, including with expanding research capacity which will allow Sri Lankan stocks to be marketed through the group's sales desks.

The group has put an application to start a physical wholesale commodity business and bring in one million US dollars.

"We have written to the Central Bank to bring in money to start a wholesale commodity business," Naushervan Beg, who heads Serendib Stockbrokers, a unit of Arif Habib group said.

"We have dedicated commodity specialists in Pakistan who would handle that."

Arif Habib group which started as a stock brokering firm in 1994 in Pakistan has later expanded into asset management, corporate finance and has acquired interests in cement and fertilizer plants and real estate and grown into a 600 million US dollar business.

The idea was still in the preliminary stages, and the commodity business if permission is given, would involve physical storage and trading, will be a separate business, if authorities give permission, he said.

A related group company, Thatta Cement is planning a cement bagging plant in the Hambantota port.

Beg says Sri Lankan exporters have lost some of the markets in they previously had in Pakistan and opportunities existed provided they had the right parties to deal with.

Related Info :

• Sri Lanka Pakistan Trade Doubles due to FTA

Pakistan to Extend $250mn Export Credit Line to Sri Lanka. Pakistan-Sri Lanka Trade to Reach $0.5bn in Five Years

30th November 2010, www.dailynews.lk, By Anjana Samarasinghe and Charumini de Silva

The Trade between Sri Lanka and Pakistan is to reach US $ 0.5 billion within the next five years. Pakistan President Asif Ali Zardari addressing the Sri Lanka - Pakistan Business Forum 2010 yesterday said the two countries have had a good relationship as good friends and partners in the region.

“With the restoration of peace; the sky is the limit for Sri Lanka. This is a unique situation for Sri Lanka to recover. Sri Lanka will recover gradually and Pakistan will sincerely assist Sri Lanka,” he said.

He also called for a barter trade with Sri Lanka rather than depending on dollar-denominated trade.

There should be incentives for foreign investors that make them keep their profits here in Sri Lanka rather than taking out from the country. President also proposed that there should be discussions with high level financial teams from both countries in formulating strategies to support each other. Sri Lanka needs to develop many parts of the country and Pakistan is ready to assist in improving infrastructure of the country. Pakistani companies should visit Sri Lanka to seek investment opportunities and invest, he said.

Industry and Commerce Minister, Rishad Bathiudeen said the bilateral trade between the two countries has improved remarkably.

The total turnover of bilateral trade between Sri Lanka and Pakistan in 2005 recorded US $ 150 million, which grew up to US $ 252 million in 2009. This is a great indication of the strong trade between the two countries.

“It is time that Sri Lanka and Pakistan should further strengthen our bilateral trade agreements while increasing the volumes of trade,” he said.

Sri Lanka recorded an eight percent growth during the first six months of this year, while becoming one of the best performing capital markets in the world. The macro economic fundamentals are stronger and stabilized. The industries, trade and commerce are taking place in a rapid growth; with the investor friendly business environment the country offers great access to the market as well.

The trade ties between the two countries should be enhanced and promoted to have a constant impetus. There are immense potential opportunities in tourism, textile, IT, agriculture, fisheries, telecommunication, leather products, infrastructure, and sports products for the Pakistan investors to venture into. Sri Lanka is one of the most preferred countries for investments especially in the areas of garments, packaging, IT, telecommunication and rubber.

Sri Lankan investors have many opportunities in the power, gas and mining in Pakistan and Pakistan will offer similar incentives to those Sri Lanka offers for these investors Pakistan State Minister and Board of Investment Chairman Saleem Mandviwala said at the Business Forum.

He said that Pakistan will also extend an US $ 250 million export credit line to Sri Lanka to facilitate trade between the two countries.

“We will also bring down more projects to Sri Lanka,” he said.

Air links between two countries will be further strengthened with direct flights and visa procedures will be relaxed to have more access to Pakistan and facilitate more trade and investment among two countries, he said.

“We invite the Sri Lankan business community to explore the business opportunities available in Pakistan,” he said.

Pakistan is the second largest trading partner of Sri Lanka in the South Asian region and the Pakistan, Sri Lanka FTA covers over 4,000 products.

SriLankan Airlines Flights to Maldives Six a Day. National Carrier Now Serves 50 Destinations in 31 Countries

29th October 2010, www.lankabusinessonline.com

SriLankan Airlines is almost doubling daily flights to the Maldive islands from December 1 to cater to the peak tourism season and also connecting a fourth city in China, a statement said.

The number of flights to Male is being increased to six a day from the earlier 3-4 a day, the airline, which has long been the largest carrier into the Maldives, said.

The new flights are part of a big expansion in its network and fleet.

"The most significant addition will be the launch of thrice-weekly services to Guangzhou scheduled for January 28, the fourth city in China to be served by SriLankan," the airline said.

This would take the route network of Sri Lanka's national carrier to 50 destinations in 31 countries.

In Europe, SriLankan will add its 13th weekly flight to London, with effect from December 15, flying twice daily on all days except Friday.

In Southeast Asia, both Singapore and Kuala Lumpur will have an added flight for a total of 11 flights each from December 01.

The Middle East will see significant changes throughout the region including the services to Bahrain, Muscat and Doha, the statement said.

Karachi will also have an added frequency, bringing it to four a week from December 01.

In India, where SriLankan serves six cities, there will be increased flights to Mumbai, Chennai and Bangalore.

Mumbai will have a total of 10 flights from December 01, up from the earlier daily frequency.

Chennai will have one additional flight for a total of 15 flights, with three on Friday and two each on all other days from December 01 and Bangalore will go to a daily frequency with the addition of one more flight.

The airline has already begun expanding its fleet, with seven more aircraft by the end of 2011.

The first of these, a wide-body Airbus A330, arrived last July. Three more are planned by February 2011, including two Airbus A320s, and a De Havilland Twin Otter floatplane for the re-launch of the domestic SriLankan Air Taxi service.

Sri Lanka Pakistan Trade Doubles due to FTA

21st May 2010, www.dailynews.lk

Pakistan is the second largest trading partner of Sri Lanka within the South Asian region. Sri Lanka is the first country to sign a Free Trade Agreement (FTA) with Pakistan.

Bilateral trade between the two countries has doubled within a short period of time from US$ 150 million to US$ 300 million during the last three years, which is a direct outcome FTA, which is operational since 2005. Recently a 27-member Pakistan-Sri Lanka Business Forum (PSLBF) delegation led by Abdul Rauf Tabani, visited Sri Lanka.

They participated in the INTRAD-EXPO 2010, organized by the National Chamber of Commerce, Sri Lanka.

They were accompanied by Consul General of Sri Lanka in Karachi V. Sidath Kumar. This was the third business delegation of the PSLBF in as many years. The business delegation also explored opportunities for investments and joint ventures in Sri Lanka.

The delegation consisted of Heads/CEOs of leading Pakistani companies in textiles, fertilizer, sugar industry, service industry, IT, fresh fruits and vegetables, manufacturing, pharmaceuticals, leisure and tourism, construction, light engineering goods, rice, apparel, gems/jewellery, sports goods and commodities sectors. The delegation also participated in an investment conference arranged by the National Chamber of Commerce.

Meetings were also held with BOI the Chairman and Sri Lanka Export Development Board Chairman. The meetings focused on increasing the volume of bilateral trade between the two countries.

Image: Economic Development Minister Basil Rajapaksa with the Pakistan business delegation.

Related Info :

• Pakistan - Sri Lanka FTA (PSFTA)- Detailed Information - The Board of Investment of Sri Lanka (BOI)