20 Pakistani products have been granted market access by Indonesia. This move will boost Pakistan’s export items in Indonesia.
The government of Indonesia issued a formal notification correcting the Indonesia-Pakistan Preferential Trade Agreement (IP-PTA). Now it has added 20 Pakistan products that will be granted market access in Indonesia. These products include mangoes broken rice, ethanol, tobacco, yarn & fabric, home textile, terry towel, apparel, and knitwear.
The two countries also signed a memorandum of understanding (MoU) to change the Preferential Trade Agreement. Commerce Secretary Younas Dagha had a meeting with the trade minister of Indonesia on Shanghai Expo in 2018 sidelines. In the meeting it was discussed that the Preferential Trade Agreement must be corrected, which has been done now.
The non-tariff barriers issue imposed on the Pakistani agriculture by Indonesia was discussed by the secretary.
Due to efforts by the Ministry of Commerce, Indonesia has agreed to offer unilateral market access for 20 Pakistani products.
In 2012, during the Pakistan Peoples Party (PPP) government the Indonesia-Pakistan Preferential Trade Agreement (IP-PTA) was signed. Through the agreement the exports of Pakistan were supposed to increase but it was a failure.
Until 2016, Pakistani exports to Indonesia continued to show downward trend. The figures went down from $236 million in 2011-12 to $141 million in 2016-17. But then in 2017-18 things improved and exports of Pakistan increased to $296 million.