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ISLAMABAD, Sep 03 (APP):Indonesia and Pakistan bilateral trade reached up to $4.7 billion in Fiscal Year 2024, and both countries are negotiating on the Free Trade Agreement (FTA) for finalization of agreement.
Pakistan and Indonesia have strong and growing trade ties, with the bilateral trade volume increasing to around $4.7 billion in 2024 from $3.36 billion in 2023.
Indonesia is one of Pakistan’s top trading partners and the largest economy in Southeast Asia.
Pakistan exports processed foods, pharmaceuticals, IT services, halal meat, textiles, seafood, and sports goods to Indonesia.
Conversely, Indonesia’s exports to Pakistan include palm oil, consumer electronics, auto parts, coal, rubber, tea, spices, and nickel-related products, with palm oil being a major import by Pakistan.
Both countries signed a Preferential Trade Agreement (PTA) in 2012, operational since 2013, which has helped facilitate market access and tariff concessions on numerous products.
Discussions are underway to advance a Free Trade Agreement (FTA) aimed at further strengthening trade relations and expanding market access. There are also plans for cooperation in electric vehicle battery production, leveraging Indonesia’s vast nickel reserves.
Future perspectives indicate enhanced cooperation not only in trade but also in sectors such as education, healthcare, IT, tourism, energy, and defense. Indonesia could act as a gateway for Pakistan to the ASEAN market, which has over 600 million people, potentially boosting Pakistan’s economic activities in Southeast Asia.
Both countries are seeking to deepen investment ties, with Pakistani investment in Indonesia witnessing exponential growth, particularly in services, construction, and trade-related sectors.
Overall, Pakistan-Indonesia trade ties are poised for significant expansion through increased trade, investment, joint ventures, and broader economic cooperation facilitated by agreements like the PTA and the forthcoming FTA.
Meanwhile, talking to APP, the President Pakistan Federation Chamber of Commerce and Industry (FPCCI) said that Indonesia is a potential trading partner of Pakistan, and now both sides need to promote trade diversification in products.
He said that Indonesia can play a significant role in connecting Pakistan with the ASEAN market and prove to be a regional gateway for Pakistan in the region.
He suggested that both sides have several opportunities to enhance bilateral trade and investment, and they should work for the promotion of tourism.