Pakistan & Sri Lanka for Dollar Free Trade

[Lankan Ranger]

Pakistan & Sri Lanka for Dollar Free Trade

Pakistan President Asif Ali Zardari yesterday proposed that his country and Sri Lanka engage in dollar free trade. Even if the two countries could not develop a common currency the two South Asian nations could resort to bartering, he said.

President Zardari, addressing Lankan lawmakers when he visited Parliament on an invitation of Speaker Chamal Rajapaksa, said both Sri Lankans and Pakistanis were from one of the oldest civilisations and the friendship between the two nations dated back to millennia ago.

Sri Lanka was abundantly blessed by Nature, the visiting Head of State said. "You have tea, rubber and betel in abundance. We have cement in abundance. We can help each other so that both of us will gain," he said.

"We are proposing a win-win option. Such win-win trade will further strengthen our age old friendship. The western investors come and go. When they go they leave with the capital and the profit. We are not that sort fly by night operators. Pakistanis would never do that to Sri Lankans," President Zardari said.

"All Sri Lanka should think of their security and infrastructure. You cannot achieve them without technology and Pakistan has it. We are happy to cooperate with Sri Lanka.

We hope Sri Lankan flights come to Pakistan so that it would increase our investors coming here. Via ship it takes three days for them to come here," he said adding that those areas should be worked out so that both countries could benefit from trading with each other.

The Island

 

[deckingraj]

Can someone throw some light on the significance of dollar free trade???

 

[Hyde]

oh its a good idea but not for Pakistan & Sri Lanka since we have very little business with them at the moment

It would have been more significant for Pakistan to go with Saudi Arabia for any such package. We are already negotiating with China so thats totally understandable

May be after 10-15 years it may become viable for Pak-Sri too but at the moment I guess we must focus on increasing bilateral trades first

 

[Lankan Ranger]

The National Bank of Pakistan will open a branch in Sri Lanka to facilitate trade through financial services.

 

[Donatello]

oh its a good idea but not for Pakistan & Sri Lanka since we have very little business with them at the moment

It would have been more significant for Pakistan to go with Saudi Arabia for any such package. We are already negotiating with China so thats totally understandable

May be after 10-15 years it may become viable for Pak-Sri too but at the moment I guess we must focus on increasing bilateral trades first

I think Pakistan army helped them with the war against the Tamil TIgers.

 

[Hyde]

I think Pakistan army helped them with the war against the Tamil TIgers.

Yes but if I am not wrong our bilateral trades stands near 1 billion dollars only. Thats not a big money when you talk about withdrawing dollar and trade in your local currency instead

too many complications for such a little benefit

 

[Zizou]

When China and Russia recently signed such an agreement, i said that though the total bi-lateral trade between Russia and China is not large enough to have any major impact on USD in short term but it still is a MASSIVE step and may soon be followed by other countries who were reluctant to take the first step ....

Is there something at the top level cooking up that we general public are not aware of ???


Greece ... Ireland ... Portugal ??? Spain ??? (Believe me if it comes to Spain, EUR will be doomed ... Spain is too big of an economy and country to be bailed out by IMF)

Is USD on brink ???

Are we heading for the greatest depression which critics and economists have been warning for decades but were considered as conspiracy theories ???

Time will tell ... and time is very near

 

[Nothing]

oh its a good idea but not for Pakistan & Sri Lanka since we have very little business with them at the moment

It would have been more significant for Pakistan to go with Saudi Arabia for any such package. We are already negotiating with China so thats totally understandable

May be after 10-15 years it may become viable for Pak-Sri too but at the moment I guess we must focus on increasing bilateral trades first

It will be difficult to sign such a deal with SA or China.. both country targets their export to earn more USD..and again with both countries Pakistan's trade is kind of one side...more Import to Pakistan and less export from Pakistan.. Even with country like Sri Lanka where there are changes of surplus trade one should keep currency of exchange in USD.

Rather than barter system small countries should follow free trade with other equal partner which will give small business men freedom to do business in small markets.

China and Russia both are holding large sum of USD and their deal is more like to gain politically and pressurize USD and to send message to other countries to leave USD in long term as reserve and push for some other means in IMF and in world trade. Both countries enjoys huge trade surplus.

 

[rsingh]

Pakistan's president seeks barter trade with Sri Lanka

 

[TopCat]

It is only possible if there were a balance of trade between countries. You cant do it when you have huge trade deficit or trade surplus with any country like Saudi Arabia.