Pakistan, Indonesia: Trade accord to come into force this month

Pakistan’s exports, particularly textiles, likely to increase.

ISLAMABAD: A preferential trade agreement (PTA) between Pakistan and Indonesia will come into force in the current month, an important step that may give a boost to trade between the two countries, says Indonesian Embassy’s Commercial Secretary in Pakistan Otto R Gani.

“Pakistan and Indonesia have completed spadework following successful meetings between top officials of the two countries during the D-8 summit held in Islamabad recently,” Gani said while talking to a delegation of the Islamabad Women Chamber of Commerce and Industry (IWCCI) on Thursday.

He said implementation of PTA would begin a new era of cooperation and serve as a foundation for enhanced economic and trade relations.

“After implementation of PTA, we will take further steps to deepen economic cooperation by initiating negotiations on a free trade agreement (FTA).”

He assured IWCCI that the Indonesian embassy as well as business community would participate in Islamabad Expo 2013 scheduled to be held in March, which would offer an opportunity to develop linkages between businesspeople of the two countries.

Speaking on the occasion, IWCCI founding president Samina Fazil and President Farida Rashid said PTA would provide a level playing field to the major palm oil exporter and could help reduce prices of edible oil in Pakistan.

Before 2007, Indonesian palm oil had a share of 55% in Pakistan’s market, and they hoped Jakarta could again grab a larger share. Similarly, Pakistan’s exports to Indonesia of value-added textiles, carpets, fabrics, leather and goods, chemicals, surgical items and fruits will get a boost.

Published in The Express Tribune, January 4^th, 2013.

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