Pakistan and Indonesia negotiating to sign Free Trade Agreement
Pakistan Daily
Pakistan and Indonesia negotiating to sign Free Trade Agreement
23 August 2008
Indonesia and Pakistan are actively engaged in negotiations to sign Free Trade Agreement (FTA), which would help in raising the volume of bilateral trade up to one billion dollars mark.
On the occasion of 63rd anniversary of Independence Day of Indonesia here on Thursday, Ibnu Prispermana Charge d’ Affaires of the Embassy of the Republic of Indonesia said that the bilateral trade between Indonesia and Pakistan stood at 919.46 million dollars during 2007, reflecting significant increase in import/export between the two countries.
He said that the governments of both the countries are committed to raise the bilateral trade volume up to one billion dollars. Both the countries have already singed the Comprehensive Economic Partnership (CEP) and now the negotiations are underway to sign a FTA, which will be a significant landmark.
He said that the trade figures between both countries have significantly increased mostly in favour of Indonesia. In 2007, trade volume between Indonesia and Pakistan reached 919.46 million dollars, whereas the export value of Indonesia to Pakistan was 846.62 million dollars. Similarly, Indonesia import from Pakistan was 72.84 million dollars.
Pakistan imports from Indonesia included vegetable fats and oils, coal coke and briquettes, paper and paper board, fruit and vegetables (betel nuts), synthetic textile, chemical material and products, chemical elements and compounds, machinery of all kinds, road vehicles and their parts, yarn and thread of synthetic fibres, iron and steel, tea and mate and crude rubber etc. He said that the Pakistan exports to Indonesia covers raw cotton, cotton yarn, cotton fabrics, wheat, muslin, fish and fish preparations, rice of all sorts, leather, synthetic fabrics including silk, flax and jute, fruits, vegetables, tarpaulins, sails etc.
Charge d’ Affaires of Indonesian Embassy said that there is still lot of potentials that could be explored and exploited ie in industrial sector, technical now-how, banking and marine/air services. There is also a good prospect to enhance trade relations as Indonesia is big market of more than 225 million people, thus is keen to promote closer ties with Pakistan which is also a huge market with more than 160 million people.
The economic ties and bilateral co-operation between both countries have continued to strengthen over the years supported by the state visits of the respective governments and by various bilateral agreements. Indonesia and Pakistan can enhance co-operation in the framework of technical co-operation among developing countries (TCDC) in various fields by exchanging experiences, skills and information. Pakistan should explore the possibilities of entering into the Indonesian market and the businessmen of both the countries should have long-term vision to enhance economic prospects, Prispermana added.
