Gilani: Malaysia and Pakistan should exploit huge consumer base via FTA
New Straits Times 2008/07/07
GILANI: Malaysia and Pakistan should exploit huge consumer base via FTA
Nor Baizura Basri
KUALA LUMPUR
Malaysia and Pakistan should exploit their huge consumer market through a free trade agreement (FTA) to support each other’s industrial growth, Pakistani Prime Minister Syed Yousuf Raza Gilani said.
“Both countries have huge consumer markets where almost all traditional and non-traditional items of trade have a demand,” he told Bernama ahead of the Group of Eight Islamic Developing Countries (D-8) Sixth Summit tomorrow.
Malaysia’s population stands at 26 million while Pakistan - where agriculture remains a dominant source of employment - has almost 161 million people.
Gilani, who arrives in Kuala Lumpur today, is leading a 20-member delegation for the summit.
This will be 56-year-old Gilani’s first visit to the country after taking the oath as Pakistan’s 22nd prime minister on March 25, this year.
Malaysia and Pakistan signed a comprehensive FTA for closer economic partnership in Kuala Lumpur on Nov 8, last year.
It was the first between the two countries which are members of the Organisation of the Islamic Conference (OIC).
Gilani said by signing the FTA, the two governments had provided an environment for the promotion of trade, enhancement of bilateral investment and increased the level of overall economic cooperation.
He pointed out that there was a need for both countries to encourage meaningful business interaction, particularly for businessmen to play a leading role for the country’s economic development.
“Pakistan recognises that the economic relations between the two countries do not commensurate with our excellent political relations. Both countries need to encourage meaningful business for business interaction,” said Gilani.
In this regard, he said both countries should explore further opportunities for cooperation in science and technology, telecommunication, education, tourism and financial sectors.
Notable Malaysian firms which made inroads into Pakistan include Ranhill Power, Tenaga Nasional, Petronas, Bandaraya Development, RedTone, Sapura, Felda, Takaful Nasional and Telekom Malaysia.
The prime minister said, once the agreement was fully recognised by the trading communities, it would help increase bilateral trade of goods and services and provide a level-playing field to the mutual advantage of both countries.
Trade between Malaysia and Pakistan breached the US$1 billion mark in 2007, and Pakistan expects this to double in 2008, with the implementation of the free trade pact from January, this year.
Major exports to Pakistan are palm oil and products, chemical products, electrical and electronic products, machinery and parts and textiles and clothing.
The major imports from Pakistan are textiles and clothing, fresh and frozen seafood, cereals including rice, electrical and electronic products and chemicals and chemical products.
