MARKET DEVELOPMENT
KCCI Urges To Expedite PTA Between Pak, Indonesia
KCCI Urges To Expedite PTA Between Pak, Indonesia
09/04/2013 (Daily Times) - Karachi Chamber of Commerce and Industry (KCCI) urged to the Ambassador of Indonesia to Pakistan Burhan Muhammad to expedite enforcement/implementation of Preferential Trade Agreement (PTA) between Pakistan and Indonesia.
Exchanging views with him President KCCI Haroon Agar said signing of PTA on the occasion of 62nd anniversary of Pak-Indonesia Friendship in February 2012 was a crucial initiative to open new chapter of economic and commercial cooperation.
KCCI believes the PTA will bring closer the business communities of both countries and will give a strong boost to the bilateral trade ties.
He hoped after enforcement/implementation of PTA, negotiations would start for Free Trade Agreement (FTA). He anticipated after implementation of PTA, Pak Indonesia bilateral trade could escalate upto $2 billion in coming years from the current figure of around $1.3 billion.
Indonesia would be able to increase its export of crude palm oil (CPO) to Pakistan whereas Pakistan could 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 percent 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 envoy 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 can import Pakistani basmati rice.
He conveyed invitation to participate in the Karachi Chamber’s My-Karachi Oasis of Harmony Exhibition in July 2013.
Burhan Muhammad said 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 the Indonesia-Pakistan PTA was a landmark development in the bilateral history of two countries which would 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 dollars in one year. He apprised there was some delay in the enforcement and notification was not issued yet, in this connection he would meet Pakistan’s secretary commerce shortly and would also visit Jakarta to meet Indonesian Trade Minister.
Indonesia can invest in the infrastructural development projects. Pakistan can get benefit of Indonesian expertise in coal sector for its Thar Coal project. He hoped this amiable relationship would continue to grow with the implementation of the PTA.
Consul General of Indonesia in Karachi Rossalis R Adenan, President of Pakistan-Indonesia Business Forum Abdul Majid Haji Muhammad also participated in the meeting.
In November 2005 Pakistan and Indonesia signed the Framework on Comprehensive Economic Partnership (FACEP) during President Susilo Bamband Yudhoyono’s visit to Pakistan.
Under the provisions of FACEP, both countries agreed to commence with PTA negotiations as the first step towards achieving a FTA as the final goal. To implement FACEP, the Trade Ministers agreed to establish a Trade Negotiation Committee (TNC). During the TNC-8 meeting in Jakarta, both the sides were able to successfully conclude negotiation on the PTA on September 16, 2011.
Under the PTA the list includes export products in the interest of Pakistan that are fresh fruits, cotton yarn, fabrics, readymade garments, fans, sports goods, leather goods and other industrial products. Indonesia has also offered market access to kinow (mandarin) and oranges from Pakistan at zero percent, which would provide a level playing field to this product in the Indonesian market.
Pakistan has offered Indonesia a total of 311 tariff lines for market access preferential tariff. It includes edible palm oil products (crude oil, RBD palm oil) sugar confectionary, cocoa product, consumer goods, chemicals, tableware, kitchenware, rubber products, wood products, glassware products, and electronic products.
Exchanging views with him President KCCI Haroon Agar said signing of PTA on the occasion of 62nd anniversary of Pak-Indonesia Friendship in February 2012 was a crucial initiative to open new chapter of economic and commercial cooperation.
KCCI believes the PTA will bring closer the business communities of both countries and will give a strong boost to the bilateral trade ties.
He hoped after enforcement/implementation of PTA, negotiations would start for Free Trade Agreement (FTA). He anticipated after implementation of PTA, Pak Indonesia bilateral trade could escalate upto $2 billion in coming years from the current figure of around $1.3 billion.
Indonesia would be able to increase its export of crude palm oil (CPO) to Pakistan whereas Pakistan could 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 percent 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 envoy 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 can import Pakistani basmati rice.
He conveyed invitation to participate in the Karachi Chamber’s My-Karachi Oasis of Harmony Exhibition in July 2013.
Burhan Muhammad said 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 the Indonesia-Pakistan PTA was a landmark development in the bilateral history of two countries which would 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 dollars in one year. He apprised there was some delay in the enforcement and notification was not issued yet, in this connection he would meet Pakistan’s secretary commerce shortly and would also visit Jakarta to meet Indonesian Trade Minister.
Indonesia can invest in the infrastructural development projects. Pakistan can get benefit of Indonesian expertise in coal sector for its Thar Coal project. He hoped this amiable relationship would continue to grow with the implementation of the PTA.
Consul General of Indonesia in Karachi Rossalis R Adenan, President of Pakistan-Indonesia Business Forum Abdul Majid Haji Muhammad also participated in the meeting.
In November 2005 Pakistan and Indonesia signed the Framework on Comprehensive Economic Partnership (FACEP) during President Susilo Bamband Yudhoyono’s visit to Pakistan.
Under the provisions of FACEP, both countries agreed to commence with PTA negotiations as the first step towards achieving a FTA as the final goal. To implement FACEP, the Trade Ministers agreed to establish a Trade Negotiation Committee (TNC). During the TNC-8 meeting in Jakarta, both the sides were able to successfully conclude negotiation on the PTA on September 16, 2011.
Under the PTA the list includes export products in the interest of Pakistan that are fresh fruits, cotton yarn, fabrics, readymade garments, fans, sports goods, leather goods and other industrial products. Indonesia has also offered market access to kinow (mandarin) and oranges from Pakistan at zero percent, which would provide a level playing field to this product in the Indonesian market.
Pakistan has offered Indonesia a total of 311 tariff lines for market access preferential tariff. It includes edible palm oil products (crude oil, RBD palm oil) sugar confectionary, cocoa product, consumer goods, chemicals, tableware, kitchenware, rubber products, wood products, glassware products, and electronic products.