There is a great trade potential exists between Pakistan and Indonesia. This was stated by Totok Prianamto, The Honourable Consul General of the Republic of Indonesia during his visit to Bin Qasim Association of Trade & Industry (BQATI).
The meeting was attended by Office bearers, members Managing Committee of Bin Qasim Association of Trade & Industry, Port Qasim Authority (PQA), Customs Senior Executives and leading industrialists of Bin Qasim Industrial Zone. The Honourable Consul General was welcomed by the President, BQATI, Salim Dada, Senior Vice President Naved Shakoor, Chairman legal and Finance Committee Shakil Ashfaqand Immediate Past President BQATI Abdul Rasheed Janmohammed
President BQATI Salim Dada deliberated on the role of BQATI as a vehicle to facilitate the Trade and Investment. He pointed out that Indonesia and Pakistan which represents almost 40% of the entire Muslim population can work together to develop each others respective Islamic Finance and Halal Industries including Islamic Banking, Halal Tourism, Cosmetic, Food and Beverages, Developing Halal Standards and Compliance enforcements, Halal certifications, etc.
Abdul Rasheed Janmohammed Immediate Past President while giving presentation emphasized that Port Qasim being the first Industrial port of Pakistan have great potential for the local and foreign investment. Rasheed Janmohammed briefed that Indonesia Offer Market access to Pakistan on 232 tariff lines on preferential rate. 103 of these are zero rated. The list includes export products of fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans, sports goods, leather goods and other industrial products. Pakistan offer market access to 313 tariff lines at preferential tariff. 82 of these are zero rated. It includes Palm Oil, sugar confectionary, cocoa product, consumer goods, chemicals, tableware, kitchenware as well as rubber, wood, glassware and electronic products.
He said that Pakistan also exporting Rice and to certain extent Wheat to Indonesia and import Coal for our energy needs. However, we see great potential of Rice exports from Pakistan as we have enough production to meet the requirement of Indonesia. We need to streamline export of Rice business so that not only the volume increase but we may have smooth business transactions.
Further Abdul Rasheed Janmohammed elaborated that in the current calendar year Pakistan exported around 265,000 MT of Rice to M/s Bulog of Indonesia which is indeed a good beginning after a long break. Similarly in the current year Pakistan also exported around 260,000 MT of Wheat to Indonesia. Pakistan is importing around 1.8 million tons of Coal per annum from Indonesia which is a very sizeable volume.
Pakistan has already given almost 80% of market access to Indonesian Palm Oil and now Indonesia is the biggest shipper of RBD Palm Oil and RBD Palm Olein to Pakistan. We feel that since Pakistan is importing Palm Oil valuing around US 1.5 billion and Coal valuing around US 20.0 million, Indonesia may also give an appropriate access to Pakistani products so that balance of trade and balance of payment equates with each other.
The Director General, PQA Dr Kazim Hussain Jatoi who also attended the meeting invited the Indonesian businessmen to visit Port Qasim and to invest as considerable opportunities are available in the field of Edible Oil, Rice, Power Generation and Marine activities. The Director General assured utmost facilitation for the investors from Indonesia.
The Honourable Consul General in his address was very receptive and assured his fullest cooperation to increase the bilateral trade between the two countries. The Honourable Consul General was very much proactive in introducing his economic agenda not only to explore the avenues to enhance the trade but also to sort out the ongoing issues of Rice Export and other related matters. He also informed that deliberations are ongoing to elevate PTA into FTA between Indonesia/Pakistan.
The Honourable Consul General while appreciating the facilities available at Port Qasim, assured the Director General of PQA that he will indeed play an important role in bringing the investment to the Port Qasim area to promote industrialization. His Excellency also invited BQATI office bearers and its members to participate in their Palm Oil Seminar on 6th September 2018 in Karachi.-PR