HYDERABAD: The bilateral trade between Pakistan and Indonesia has witnessed mammoth growth of by 215 per cent and increased from $700 million in 2010 to $2.2 billion in 2014.
Indonesian Consul General Hadi Santoso said this, while delivering a lecture at an international seminar at the Area Study Centre Far East, University of Sindh, Jamshoro. He said that the efforts are being made to further boost the trade ties between the two countries.
The Indonesian CG said currently the balance of trade was in favour of Indonesia, but hoped that the Preferential Trade Agreement (PTA) would help strike a better balance. “Both sides have agreed to provide market access by granting tariff concessions and removing non-tariff barriers,” the consul general said.
Under the PTA, Indonesia and Pakistan offer preferential rates on 216 and 287 tariff lines, respectively. Indonesia will be able to export edible palm oil products at a 15pc margin of preference, similar to the Most Favoured Nation (MFN) tariffs granted to Malaysia.
The PTA follows the Framework on Comprehensive Economic Partnership signed between the two countries in November 2005 which envisages an eventual Free Trade Agreement (FTA) between the two countries. “The PTA is a precursor to such an open trade agreement”, he said.
