Pakistan and Indonesia have signed a memorandum of understanding to establish an Indonesia-Pakistan Joint Trade Committee (JTC) to strengthen trade dialogue, facilitate cooperation and address opportunities and challenges in bilateral trade.
The MoU was signed after high-level talks in Islamabad on Friday, led by Commerce Minister Jam Kamal Khan and visiting Indonesian Vice Minister of Trade Dyah Roro Esty Widya Putri, said a press release.
The development coincided with a reception hosted by the Indonesian Consulate General in Karachi in honour of the visiting vice minister, attended by government officials and representatives of the business community from both countries.
During the talks, Mr Kamal described Indonesia as strategically important within the Association of Southeast Asian Nations (ASEAN) and said it could serve as a regional hub for fostering trilateral and regional economic cooperation.
The federal minister emphasized that Pakistan could serve as a reliable source for minerals, cosmetics, pharmaceuticals and agri-food commodities for the Indonesian market.
He also conveyed Pakistan’s intention to organise a single-country exhibition and business forum in Jakarta, with invitations to be extended to Asean member states, aimed at showcasing Pakistani products and strengthening regional business linkages.
Trade Development Authority of Pakistan (TDAP) Chief Executive sought Indonesian facilitation for the early announcement of fruit import quotas, rationalization of certification requirements for Pakistani exports, notification of rice import quotas and improved market access for industrial-grade potatoes.
Both sides agreed to work jointly towards expanding the existing preferential trade agreement (PTA), with the shared objective of progressing towards a Comprehensive Economic Partnership Agreement to unlock greater trade and investment opportunities.
Mr Kamal noted that imported edible oil, primarily from Indonesia, forms an essential part of Pakistan’s food chain and daily life and appreciated the continued contribution of Indonesian and Pakistani stakeholders to sustaining bilateral trade.
The Indonesian vice minister reaffirmed Indonesia’s commitment to deeper economic ties and welcomed closer cooperation through the newly established JTC.
With bilateral trade exceeding $4 billion, both sides reiterated their commitment to further strengthening relations through political trust, growing economic cooperation and people-to-people links, the press release said.
Growth in auto sales
Separately, the minister on Wednesday expressed optimism that sales of locally manufactured vehicles would improve in the coming years, citing policies aimed at discouraging imports of used cars.
Mr Kamal said Pakistan’s annual production of vehicles, currently below 200,000 units, could rise to between 500,000 and one million units, creating new investment opportunities. He also stressed the need to strengthen auto-financing to support higher sales of locally made vehicles.
During a visit to the Bin Qasim automotive cluster of the Pakistan Association of Automotive Parts and Accessories Manufacturers, he reaffirmed the government’s commitment to supporting domestic automobile manufacturing and exports.
Reference Link:- https://www.dawn.com/news/1966287