Karachi Chamber of Commerce and Industry's President Muhammad Haroon Agar has urged to Ambassador of Indonesia to Pakistan Burhan Muhammad to expedite enforcement/implementation of Preferential Trade Agreement (PTA) between Pakistan and Indonesia.
Exchanging views during the visit of Indonesian Ambassador to KCCI, he articulated that signing of PTA on the occasion of 62nd anniversary of Pak-Indonesia Friendship in the month of February 2012 was a crucial initiative to open new chapter of economic and commercial cooperation.
KCCI believes that the Preferential Trade Agreement (PTA) will bring closer the business communities of both countries and will give a strong boost to the bilateral trade ties. He hoped that after enforcement/ implementation of PTA, negotiations will start for Free Trade Agreement (FTA).
He anticipated that after implementation of PTA, Pak Indonesia bilateral trade could escalate up to US dollar 2 billion in coming years from the current figure of around 1.3 billion US Dollars.
Indonesia would be able to increase its export of crude palm oil (CPO) to Pakistan whereas Pakistan can export to Indonesia its fruits, value added textiles, carpets, fabrics, leather goods, chemicals, surgical items etc. He urged for Indonesia-Pakistan joint ventures in crude palm oil and agricultural value added products.
Bilateral trade between Indonesia and Pakistan has grown to $ 1.65 Billion in 2012, up 15% from $1 Billion in 2008. Indonesia exported goods worth $1.38 billion to Pakistan while importing goods worth $273 million. Major increase has been seen in export of cotton/cotton fabrics and cereals from Pakistan which grew by $ 20 million and $11.53 million respectively while import of palm oil from Indonesia increased by $ 289.87 million. He urged the Ambassador to expedite negotiations on signing of “Mutual Recognition Agreement" and take measures to remove non-tariff barriers on imports of fruits, rice, including monthly quotas, complex licensing system, and limited entry points for imports. Indonesia being world's third largest consumers of rice can import Pakistani basmati rice. He conveyed gratitude to the Indonesian Ambassador and Consul General for inviting Indonesian exhibitors to participate in the Karachi Chamber's My-Karachi Oasis of Harmony Exhibition scheduled to be organized in July 2013.
Ambassador Burhan Muhammad stated that his priorities were to enhance economic cooperation (G2G) between Indonesia and Pakistan, connect the business communities of two countries for B2B and developing Military to Military linkages between two brother Muslim countries.
He highlighted that the Indonesia-Pakistan Preferential Trade Agreement (PTA) was a landmark development in the bilateral history of two countries which will not only raise bilateral trade volume but also open doors for Pakistani businessmen to penetrate in the emerging ASEAN market. With enforcement of PTA the trade volume between two countries will touch the figure of two billion US dollars in one year.
Consul General of Indonesia in Karachi Rossalis R. Adenan, President of Pakistan-Indonesia Business Forum and Ex-President KCCI Abdul Majid Haji Muhammad, Former President KCCI Majyd Aziz, Senior Vice President KCCI Shamim Firpo, Vice President KCCI Nasir Mehmood and Managing Committee Members of KCCI were present.