MARKET DEVELOPMENT
Trade Deficit Forces MoC to Review PTA with Indonesia
Trade Deficit Forces MoC to Review PTA with Indonesia
01/09/2015 (Pakistan Observer) - The Ministry of Commerce (MoC) is holding review of Preferential Trade Agreement (PTA) with Indonesia to reduce the widening trade deficit with Indonesia. PTA became operational between both the countries in 2013, however, PTA failed in reducing the ever widening trade deficit the friendly countries. Main reason of trade deficit is higher quantity of imports by Pakistani importers as compared to exports.
“Efforts will be made to further deepen market access for Pakistani products in Indonesian market to increase exports and bridge the trade deficit” a well placed official source at MoC told Pakistan Observer here on Saturday. The source said that Pakistan had been facing trade deficit with Indonesia even before signing of PTA and it continues to remain so and primary reason for the trade deficit is import of large quantity of palm oil from Indonesia.
“In the year 2013-14, Pakistan imported 2.2 million tones of palm oil amounting to $ 1.9 billion” the source added saying that of the total import of palm oil, 52% was imported from Indonesia. The source said that Palm Oil was raw material for cooking oil and other consumer items and availability of palm oil at cheaper rates had resulted in lower cost of production and benefited consumers. However, the source said that in order to reduce trade deficit and enhance Pakistan’s exports to Indonesia, MoC had regularly been conducting trade promotional activities like exhibitions, trade fairs and business delegations.
The source observed that in the post 18th amendment scenario, Ministry of Commerce had setup a Domestic Commerce Wing for creating linkages between domestic & International trade to enhance exports compositeness. In this regard the source added that the Trade Development Authority of Pakistan (TDAP) participated in Interfood Indonesia 2014 held from November 12-15 in Jakarta International Expo Kernayoran.
Similarly, two representatives of SAARC Chamber participated in program on ASEAN Mechanism at ASEAN Secretariat Jakarta on June 16-18. The Lahore Chamber of Commerce and Industry (LCCI) and the Jakarta Chamber of Commerce and Industry (JCCI) signed a Memorandum of Understanding on August18- 23, 2014. A delegation of LCCI also visited Jakarta and Signing of MOU, between LCCI and JCCI on August 26, 2014” the source recalled adding that a 15 Member Delegation of Pakistan Vanaspati Manufactures Association went to Indonesia and participated in 10th Indonesian Palm Oil Conference held from November 25-29.
“Efforts will be made to further deepen market access for Pakistani products in Indonesian market to increase exports and bridge the trade deficit” a well placed official source at MoC told Pakistan Observer here on Saturday. The source said that Pakistan had been facing trade deficit with Indonesia even before signing of PTA and it continues to remain so and primary reason for the trade deficit is import of large quantity of palm oil from Indonesia.
“In the year 2013-14, Pakistan imported 2.2 million tones of palm oil amounting to $ 1.9 billion” the source added saying that of the total import of palm oil, 52% was imported from Indonesia. The source said that Palm Oil was raw material for cooking oil and other consumer items and availability of palm oil at cheaper rates had resulted in lower cost of production and benefited consumers. However, the source said that in order to reduce trade deficit and enhance Pakistan’s exports to Indonesia, MoC had regularly been conducting trade promotional activities like exhibitions, trade fairs and business delegations.
The source observed that in the post 18th amendment scenario, Ministry of Commerce had setup a Domestic Commerce Wing for creating linkages between domestic & International trade to enhance exports compositeness. In this regard the source added that the Trade Development Authority of Pakistan (TDAP) participated in Interfood Indonesia 2014 held from November 12-15 in Jakarta International Expo Kernayoran.
Similarly, two representatives of SAARC Chamber participated in program on ASEAN Mechanism at ASEAN Secretariat Jakarta on June 16-18. The Lahore Chamber of Commerce and Industry (LCCI) and the Jakarta Chamber of Commerce and Industry (JCCI) signed a Memorandum of Understanding on August18- 23, 2014. A delegation of LCCI also visited Jakarta and Signing of MOU, between LCCI and JCCI on August 26, 2014” the source recalled adding that a 15 Member Delegation of Pakistan Vanaspati Manufactures Association went to Indonesia and participated in 10th Indonesian Palm Oil Conference held from November 25-29.