Pakistan and Indonesia Trade Partnership

Trade between Pakistan and Indonesia has witnessed positive growth in the past few years, increasing from 0.7 billion dollars in 2005 to 1.6 billion dollars in 2012. In efforts to improve trade relations, the two countries signed a Preferential Trade Agreement (PTA) on February 3, 2012 which became operational in September 2013 after many rounds of negotiations. Under the PTA, Indonesia offers market access along 232 tariff lines, of which 103 are zero rated. Items in the preferential list include fresh fruits, cotton yarn, cotton fabrics, ready-made garments, fans, sport goods, leather goods and other industrial products. 0% market access is offered to Kinnow (mandarin) and oranges from Pakistan providing a level playing field to this product in the Indonesian market. Pakistan’s offer to Indonesia includes 313 tariff lines that includes items such as edible palm oil products, sugar confectionary, cocoa product, chemicals, kitchenware and rubber, wood, glassware and electronic products. Pakistan has offered the same preferential treatment on edible palm oil products from Indonesia as provided to Malaysia under Pakistan Malaysia Free Trade Agreement.

PTA Concessions Lists