14/06/2008 (The News - International, Pakistan), Kuala Lumpur - Under Closer Economic Partnership Agreement (MPCEPA) signed between Pakistan and Malaysia in November 2007, Pakistan has reduced the tariff on seven palm products by 10 per cent Margin of Preference (MoP).

The tariff reduction would be applicable with effect from January 1, 2008 to give further boost to palm oil import by Pakistan which is expected to increase by 33 per cent, higher this year as compared with 2007.

According a message received here on Friday from commercial counsellor of Pakistan High Commission in Malaysia Majid Qureshi, the tariff will further be reduced by 5 per cent MoP, starting from January 1, 2010, making Malaysia as the first choice for Pakistan to import palm oil and its products.

The palm oil export to Pakistan by Malaysia has registered 10.4 per cent increase in the year 2007 as compared with 2006, the message said adding that in 2007 total export to Pakistan was 1,070,067 tonnes as compared with 968,406 tonnes in 2006.

According to Majid, as a result of reduced tariff Pakistan’s demand for Malaysian palm oil is expected to increase by 33 per cent in 2008, despite escalation of prices in the international market.

MPCEPA is Pakistan’s first comprehensive agreement on goods, services, investment and economic cooperation with any country of the world, the statement added.

This agreement will provide Pakistan a firm foothold in the ASEAN region, and a summit level partnership with the Association of South East Asian Nations (ASEAN).

MPCEPA will also facilitate linkage with efficient and growing economy of AASEAN by providing market access to Pakistan’s future items of export interest and opportunities to the Pakistani exporters and industrialists to source out raw materials and intermediary goods from China or Malaysia at zero rate.

The agreement will also open new vistas of opportunities for the qualified Pakistan financial institutions to undertake currencies in Malaysia and insurance companies to establish representative offices in Malaysia and employ Pakistan expatriates in these entities after obtaining new licences for Islamic banking.

Besides, MPCEPA will also cover energy and gas service as well as commitments in financial services and sectors such as maritime transport and franchise.