'Pakistan & Indonesia likely to sign FTA in two years'

16 Oct '13

2 min read

The signing of Pakistan-Indonesia Preferential Trade Agreement (PTA) has paved a way for Free Trade Agreement (FTA) between the two countries which would likely be signed in about 24 months time, Indonesian Ambassador to Pakistan Muhammad Burhan Muhammad said while speaking at the Lahore Chamber of Commerce and Industry (LCCI).

The Indonesian Ambassador said that serious efforts are being made to ensure bilateral trade between the two countries, and steps would be taken to broaden economic integration by initiating negotiations on FTA.

The ambassador said Indonesia’s economy, which represents 40 percent of Association of Southeast Asian Nations’ (Asean) aggregate economy, is projected to grow at a faster pace in the coming years, and the country is an attractive investment destination for many reasons.

The Pakistani businessmen should avail the opportunities and should enhance their interaction with counterparts in Indonesia, he added.

The ambassador also announced that Jakarta Chamber of Commerce and Industry (JCCI) and the Karachi Chamber of Commerce and Industry (KCCI) would be signing a Memorandum of Understanding (MoU) on October 21, 2013 in Jakarta, to strengthen trade ties between the two nations. After the signing of MoU with KCCI, another MoU would be signed with the LCCI.

At the occasion, LCCI president Sohail Lashari said the FTA negotiations in near future are necessary to draw beneficial results from PTA, and although Pakistan’s share in the two-way trade is lesser than Indonesia, it is beneficial for both countries.

Under the PTA, Indonesia has included various Pakistani products in offer list including, cotton yarn, cotton fabrics, and readymade garments, he added.

The LCCI president said there is a lot of scope for Indonesia to make investments in Pakistan, as Indonesia has a fairly advanced petrochemical sector and can make investments in these industries, as well as enter into joint ventures with Pakistani counterparts.

Pakistan's major exports to Indonesia include cotton, cotton fabric, and cotton yarn, whereas its imports from Indonesia include artificial staple fibers and yarn of synthetic fibre.

Fibre2fashion News Desk - India

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