The Pakistan Business Council Welcomes Indonesia’s Move to Reduce Import Duty on Goods from Pakistan

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.