Following the successful lobbying by the Pakistan Government, Indonesia has agreed to entirely abolish import duty on twenty items. Hitherto, the duty on these ranged from 7.5% to 30%. Aside from Mangoes and Rice, the major benefit will accrue to the value-added textiles sector.

The PBC estimates an incremental export potential arising from the duty relaxation of US$320 Mn, subject to capacity and quality competitiveness of the offerings.

In 2017, Pakistan imported goods (mainly vegetable oil) worth US$ 2.4 Bn from Indonesia. It exports amounted to US$ 241 Mn, leaving a trade deficit of US$ 2.2 Bn. On an annualized basis the relaxation of tariffs will enhance exports from Pakistan to Indonesia by 133% and reduce the deficit by 15%.

The PBC assists the Government through research on trade opportunities and its “Make-in-Pakistan” thrust is aimed at creating jobs, boosting valueadded exports and encouraging import substitution.

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