Malaysia ready to renegotiate FTA

Bilateral talks after Malaysian PM visit lead to signing of two G2G, four B2B MoUs

ISLAMABAD:

Malaysia's High Commissioner to Pakistan, Dato' Mohammad Azhar Mazlan, announced on Friday that Pakistan and Malaysia will soon begin renegotiating their bilateral Free Trade Agreement (FTA), aiming to strengthen economic cooperation and trade ties. Pakistan's Commerce Minister, Jam Kamal Khan, will represent Pakistan in the discussions, which will include updates to the FTA and broader economic topics relevant to both countries.

The announcement was made at an event hosted by the Malaysian High Commission in Islamabad, attended by more than 50 prominent Pakistani industry leaders and stakeholders. The gathering, organised in response to Malaysian Prime Minister Anwar Ibrahim's recent visit to Pakistan, focused on enhancing trade, investment, and business collaboration. Mazlan underscored Malaysia's commitment to fostering a conducive environment for trade partnerships and highlighted the importance of leveraging the outcomes of the prime minister's visit to boost economic cooperation.

Signed in 2007, the FTA between Pakistan and Malaysia was Pakistan's first comprehensive trade agreement, covering trade in goods, services, investment, and economic cooperation. It was also Malaysia's first bilateral FTA with a South Asian country, representing the strong diplomatic ties between the two OIC-member nations.

During his remarks, Mazlan highlighted the positive outcomes of Prime Minister Anwar Ibrahim's visit, which led to the signing of two government-to-government and four business-to-business Memoranda of Understanding (MoUs). Malaysia committed to importing $100 million worth of halal meat and 100,000 tonnes of Basmati rice from Pakistan. Additionally, the high commissioner announced the recent opening of a Malaysian External Trade Development Corporation (MATRADE) office in Karachi to further facilitate business engagement between the two countries. He encouraged Pakistani business leaders to consider Malaysia as a strategic gateway to the ASEAN region, with a market of approximately 680 million people.

Attendees shared insights on the trade and investment landscape between Malaysia and Pakistan, with a focus on continued dialogue to unlock mutual economic benefits. In a regional context, the Malaysian high commissioner highlighted the potential of Pakistan expanding its engagement within ASEAN, particularly as Malaysia prepares to assume the ASEAN chairmanship in 2025. This role could offer Pakistan new opportunities for economic cooperation within the ASEAN framework. The bilateral engagements provided a platform for industry leaders to discuss key challenges and explore fresh opportunities.