Pakistan-Indonesia trade volume to grow to $2.5b this year
Indonesian consul general says both countries have been working to improve ties since 2015
PHOTO: KCCI
KARACHI:
Bilateral trade between Indonesia and Pakistan is expected to reach $2.5 billion this year, said Indonesian Consul General in Karachi Dempo Awang Yuddie.
Speaking at a ceremony held to celebrate the 72nd anniversary of the Republic of Indonesia on Thursday, he said that the two countries had tried to improve both political and economic ties since 2015.
Resultantly, a number of Pakistan’s parliamentarians, trade delegations and military personnel visited Indonesia recently to further enhance the bilateral relationship.
Pakistan wants Indonesia to ease ‘visa restrictions’ for its citizens
Trade between Pakistan and the Southeast Asian giant has been growing strongly for the last couple of years. The volume of bilateral trade grew from $700 million in 2010 to $2.3 billion in 2016, an increase of 229%.
Pakistan’s major exports to Indonesia include textiles and clothing, vegetables and fruits (mainly oranges) while its major import item from Indonesia is palm oil.
With over $2 billion worth of imports, the balance of trade is in favour of Indonesia while the two countries are trying to strike a balance so that it can become a win-win situation for both the trading partners.
Indonesia imports over $650 million worth of fruits and $550 million worth of vegetables annually. Now that Pakistan is regaining its share in Indonesia’s fruit imports, its exporters want to export more vegetables as well.
Speaking to the gathering, which included people from trade and business, diplomatic community and academia, Sindh Governor Mohammad Zubair said, “Pakistan wants to further strengthen its relationship with Indonesia, especially in trade and business.”
He remarked that the recent economic rise of Indonesia was also an example for Pakistan to follow, especially because the two countries shared many similarities in their demographics.
To improve trade relations, the two countries signed the Preferential Trade Agreement (PTA) on February 3, 2012, which came into effect in September 2013 after many rounds of negotiations.
Under the PTA, Indonesia offers market access for 232 tariff lines, of which 103 are zero-rated. Items in the preferential trade list include fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans, sports goods, leather goods and other industrial products.
Zero-rated market access is offered to kinnow (mandarin) and oranges from Pakistan, providing a level playing field to this product in the Indonesian market.
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Pakistan’s offer to Indonesia under the PTA covers 313 tariff lines that include items such as edible palm oil products, sugar confectionery, cocoa products, chemicals, kitchenware, rubber, wood, glassware and electronic products.
Pakistan has offered the same preferential treatment to edible palm oil products from Indonesia as provided to Malaysia under the Pakistan-Malaysia Free Trade Agreement (FTA).
Published in The Express Tribune, August 19th, 2017.
Bilateral trade between Indonesia and Pakistan is expected to reach $2.5 billion this year, said Indonesian Consul General in Karachi Dempo Awang Yuddie.
Speaking at a ceremony held to celebrate the 72nd anniversary of the Republic of Indonesia on Thursday, he said that the two countries had tried to improve both political and economic ties since 2015.
Resultantly, a number of Pakistan’s parliamentarians, trade delegations and military personnel visited Indonesia recently to further enhance the bilateral relationship.
Pakistan wants Indonesia to ease ‘visa restrictions’ for its citizens
Trade between Pakistan and the Southeast Asian giant has been growing strongly for the last couple of years. The volume of bilateral trade grew from $700 million in 2010 to $2.3 billion in 2016, an increase of 229%.
Pakistan’s major exports to Indonesia include textiles and clothing, vegetables and fruits (mainly oranges) while its major import item from Indonesia is palm oil.
With over $2 billion worth of imports, the balance of trade is in favour of Indonesia while the two countries are trying to strike a balance so that it can become a win-win situation for both the trading partners.
Indonesia imports over $650 million worth of fruits and $550 million worth of vegetables annually. Now that Pakistan is regaining its share in Indonesia’s fruit imports, its exporters want to export more vegetables as well.
Speaking to the gathering, which included people from trade and business, diplomatic community and academia, Sindh Governor Mohammad Zubair said, “Pakistan wants to further strengthen its relationship with Indonesia, especially in trade and business.”
He remarked that the recent economic rise of Indonesia was also an example for Pakistan to follow, especially because the two countries shared many similarities in their demographics.
To improve trade relations, the two countries signed the Preferential Trade Agreement (PTA) on February 3, 2012, which came into effect in September 2013 after many rounds of negotiations.
Under the PTA, Indonesia offers market access for 232 tariff lines, of which 103 are zero-rated. Items in the preferential trade list include fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans, sports goods, leather goods and other industrial products.
Zero-rated market access is offered to kinnow (mandarin) and oranges from Pakistan, providing a level playing field to this product in the Indonesian market.
Inmates escape Indonesian prison during floods
Pakistan’s offer to Indonesia under the PTA covers 313 tariff lines that include items such as edible palm oil products, sugar confectionery, cocoa products, chemicals, kitchenware, rubber, wood, glassware and electronic products.
Pakistan has offered the same preferential treatment to edible palm oil products from Indonesia as provided to Malaysia under the Pakistan-Malaysia Free Trade Agreement (FTA).
Published in The Express Tribune, August 19th, 2017.