14/09/2011 (Bernama) - There is immense untapped potential to enhance two-way trade between Malaysia and Pakistan, International Trade and Industry Deputy Minister, Datuk Mukhriz Mahathir said.

He said the trade and investment between both countries was still relatively low with trading continuing in a rather narrow range of products.

"The role of the private sector is also very crucial in implementing the trade and investment framework drawn up by both governments," he said at the launch of the Pakistan-Malaysia Business Forum, here today.

Mukhriz said that trade promotions also played a major role in attracting investments and enhancing exports as well as imports.

"Malaysia and Pakistan have always maintained close bilateral relations, with trade assuming a key role in forging close ties.

"A watershed in our bilateral engagement is the signing of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) in 2007, which officially came into effect on January 1, 2008," he added.

Mukhriz said since the implementation of the MPCEPA in 2008, bilateral trade had increased steadily, with total trade growing by 133 per cent from RM3.42 billion in 2006 to RM7.99 billion, last year.

"Malaysia's exports to Pakistan amounted to RM7.52 billion last year, representing an increase of 31.3 per cent.

"Malaysia, which is Pakistan's 25th largest export destination and 5th largest source of imports, had in 2010 imported goods worth RM475.9 million compared to RM525.8 million previously," he said.

He also said for the first six months of this year, total trade between the both countries was valued at RM4 billion, a growth of 11.7 per cent from the same period, last year.

"This uptrend is expected to continue year-on-year, both in exports and imports," he added.

Malaysia's major exports to Pakistan includes palm oil, chemical products, electrical and electronic products, as well as textiles and clothing.

Meanwhile, Malaysia imported mainly textiles and clothing, vegetables, seafood, rice, chemical and chemical products.

In terms of foreign direct investment, Mukhriz said Pakistan was ranked 19th last year in terms of approved investment in the manufacturing sector.

"As of May 2011, the approved investments were worth RM1.096 billion in 25 projects, mainly in paper, printing and publishing, food manufacturing, textiles and textile products, leather and leather products, and scientific and measuring products.

"Investments from Malaysia to Pakistan on the other hand, amounted to RM2.6 billion in 2010, mainly in infrastructure development and construction, petroleum exploration and energy," he added.