The trade volume between Pakistan and Indonesia will likely to touch $2 billion mark in a year after the implementation of Preferential Trade Agreement (PTA), said Ambassador of Indonesia Ishak Latuconsina on Thursday. The Embassy of Indonesia hosted a dinner-cum-reception to mark the signing of Indonesia-Pakistan PTA.
The representatives of Federation of Chamber of Commerce, Rawalpindi Chamber of Commerce and Industries, Islamabad Chamber of Commerce and Industries, Sarhad Chamber of Commerce and other businessmen attended the meeting. Ambassador said optimistically, "The signing of the PTA which will lead to FTA is a landmark development which will not only raise the bilateral trade volume but also open the doors to the Pakistani businessmen to penetrate into the huge emerging Asean market".
He further said," The opportunities for trade under this agreement are tremendous and offer bright prospects of collaboration in specific areas of trade such as palm oil, fruits, textile, surgical and sports goods etc". The ambassador said that the PTA would be equally beneficial for the corporate sector of the two countries since it would encourage competition and to provide level playing field to the trades and investors.
He said that the agreement was singed after five years of negotiations and eight rounds of meetings in Jakarta and Islamabad was a significant achievement for two countries. Vice President FPCCI, Mirza Abdul Rehman said, "the agreement will come into action in 30 days after the date on which the parties exchange written notifications".
He said Indonesia agreed to offer market access to Pakistan on 216 tariff lines on preferential rates, while Pakistan reiterated with 287 tariff lines. " Indonesia will be able to export palm oil products at a 15 percent margin of preference, similar to the Most Favoured Nation (MFN) tariffs granted to Malaysia by Pakistan". He further said that the bilateral trade between both countries increased to $725.98 million in 2011 as compared to $70.6 million in 2010.
Chairman Trade Development Authority of Pakistan (TDAP) Tariq Puri appreciated the efforts made by ambassador and secretary commerce which was in result of signing the agreement. Guest of honour, Former Minister for State Nawabzada Malik Amad said Pakistan and Indonesia had a long-term relationship and Indonesia always helped Pakistan in time of need. He recalled humanitarian assistance made by Indonesia during flood 2010.