JAKARTA -- Pakistan and Indonesia have cooperated in Preferential Trade Agreement (PTA). Currently, the two countries are still in the process of reviewing PTA. The agreement become operational in 2013 and first review meeting was held in August, 2016 in Jakarta and the second meeting was scheduled to be held in Islamabad on 16th - 17th Feb, 2017.
During the first review meeting, both parties shared the lists of their concerns regarding the implementation of PTA during the first three years and agreed to take steps to address those concerns. In the upcoming meeting Pakistan and Indonesia would review the progress made so far. "At the time of signing of PTA, total volume of trade between two countries was $ 1.6 billion, which reached to $ 2.1 billion in 2015," Embassy of Pakistan said in a written statement received by Republika.co.id, on Tuesday (Feb 14).
Indonesian exports to Pakistan has been increasing significantly. Pakistan has become Indonesian fourth largest palm oil importer. The Embassy said Pakistan is likely to become major Indonesian coal importer in coming two-three years when its four major coal-fired power projects would become operational. Pakistan’s imports from Indonesia were $ 936 million in 2011, which reached all time high of $ 2 billion in 2014 before slightly dipping down to $ 1.9 billion in 2015.
Meanwhile, Pakistan’s exports to Indonesia have seen negative growth after the implementation of PTA. "Pakistan’s exports to Indonesia were $ 273 million in 2012 when the PTA was signed and in 2015 the number came down to $ 174 million," Pakistan Embassy affirmed.
Indonesia’s exports of $ 2 billion to Pakistan were at stake because of the growing frustration of the Pakistani exporters, who have to face many hurdles due to arbitrary implementation of Technical Barriers to Trade by the Indonesian authorities.
Pakistani exporters were putting pressure on Pakistan’s Ministry of Commerce for applying similar kind of restrictive measures on palm oil as the Indonesian government has been doing for rice, corn and kinnow imports from Pakistan. "Malaysia was watching this review process very closely. It lost Pakistani market for Palm oil export due to the PTA between Pakistan and Indonesia in 2012," Pakistan Embassy said.
Also read: Pakistani oranges enters Indonesian market
The Embassy also stated Malaysia has been continuously pursuing for further expansion of its Free Trade Agreement (FTA) with Pakistan. First meeting of FTA review exercise has already been held in Islamabad. Reportedly Malaysia was willing to offer Pakistan more concessions on items of its prime interest in-exchange of further concessions on palm oil, which would help them regain their lost share of the Pakistan’s Palm oil, at the moment estimated to the tune of $ 2 billion and has further potential to grow.
Ikuti Whatsapp Channel Republika