Pakistan is expecting its bilateral trade with Indonesia to grow manifold with grant of duty free access to 20 tariff lines under the ambit of Preferential Trade Agreement (PTA) which will formally be signed on the eve of Indonesian President Joko Widodo's state visit from January 26-27.
Diplomatic sources told Business Recorder on Monday that Indonesia plans to export liquefied natural gas (LNG) to Pakistan to meet its energy requirements and the two sides are expected to hold talks during President Widodo's visit to the country.
According to Foreign Office spokesperson Dr Mohammad Faisal, Indonesian President Joko Widodo in his first visit to the country, will be accompanied by First Lady Iriana Widodo, besides ministers and a large business delegation.
He said that President Mamnoon Hussain will hold a State banquet for the visiting dignitary at the Presidency. President Widodo will also hold talks with Prime Minister Shahid Khaqan Abbasi on bilateral issues and regional situation.
President Widodo will also address a Joint Session of the Parliament on January 26 which has already been summoned by President Mamnoon Hussain at 6:00 pm.
"Pakistan and Indonesia enjoy close historical and cordial relations", the spokesperson said, adding Indonesia is the 8th largest trading partner of Pakistan and the largest trading partner in the ASEAN [Association of Southeast Asian Nations] region.
Pakistan's bilateral trade with Indonesia stands at around US$ 2.1 billion annually, he said, adding Pakistan is one of the largest importers of Indonesian palm oil. He expressed confidence that President Widodo's visit will contribute towards strengthening existing fraternal ties between the two countries.
"Bilateral trade is expected to grow manifold with grant of duty free access to 20 tariff lines from Pakistan for export to Indonesia under the ambit of Preferential Trade Agreement (PTA)", he said, adding that during recent years, bilateral political, parliamentary, economic, defence and people to people contacts have seen a substantial increase.
The items on which tariff will be reduced to zero include: mangoes; broken rice - of a kind used for animal feed; broken rice - other; un-denatured ethyl alcohol of an alcoholic strength by volume of 80 percent or higher; ethyl alcohol and other spirits, de-natured, of any strength - other; tobacco, not stemmed/stripped - Virginia type, flue-cured; tobacco, partly or wholly stemmed/ stripped - Virginia type, flue-cured; articles of apparel and clothing accessories, of leather or of composition leather - articles of apparel; single yarn of uncombed fibres - measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number); single yarn, of combed fibres - measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number); woven fabrics of cotton, containing 85 percent or more by weight of cotton, weighing more than 200 g/m2-denim; woven fabrics of cotton, containing less than 85 percent by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200 g/m2-Denim; T-shirts, singles and other vests, knitted or crocheted, of cotton - for women or girls; T-shirts, singles and other vests, knitted or crocheted - for men or boys, of other textile materials; T-shirts, singles and other vests, knitted or crocheted, of other textile materials - for women or girls; jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted - of cotton; trousers, bib and brace overalls, breaches and shorts - other; trousers bib and brace overalls, breeches and shorts - of cotton; other bed linen, printed - of cotton and; toilet linen and kitchen linen, of terry towelling or similar terry fabrics, of cotton.
Earlier, President Susilo Bambang Yudhoyono, the predecessor of President Widodo, visited Pakistan to attend D-8 Summit in 2012.
President Mamnoon Hussain participated in the Extraordinary Summit of OIC on Palestine and Al Quds Shareef in Jakarta in March 2016.