Pakistan and Malaysia expect bilateral trade to double in the next few years from $2 billion to $4 billion after the Free Trade Agreement (FTA) has been signed by the two countries. A session of Pakistan Malaysia Joint Ministerial Commission (JMC) is going to be held on September 13 in the Malaysia to examine the implementation status of the agreements and understandings between the two countries.
According to sources, the two countries aim to double the existing trade figure in the next five years and seek further deals in agricultural products, technological sharing and search of new markets in each country.
Bilateral trade has increased by 34 per cent in 2010, totaling $2.5 billion, compared to a trade volume of $1.86 billion in the fiscal year 2009. The jump in bilateral trade was observed after the FTA was signed by the two countries in 2007.
The forthcoming session of Pakistan-Malaysia JMC is also important to evaluate ways to improve trade and investment to tap full economic and trade potential existing between the two countries. A major player in trade between the two countries was import of palm oil from Malaysia and the bilateral trade was in favour of the foreign country. Pakistan imports palm oil costing $1 billion annually and due to a 15 per cent concessional duty given to Malaysian palm oil, its share in total palm oil imports has risen to 70 per cent from 55 per cent. Palm oil imports from Indonesia have declined to 30 per cent from 45 per cent. Besides the JMC, a Joint Business Council (JBC) was also under consideration between the two countries for strengthening of trade ties.
It was earlier suggested by experts and officials from both sides in various meetings of JMC that the concerned authorities in both countries should convene a conference of Chief Executive Officers of leading companies. They could explore and identify areas of cooperation, including possible joint ventures in areas such as the halal food industry, milk and dairy products, power and energy sector, alternate energy generation.
Pakistan, experts said, can increase its share in bilateral trade through creating markets for its products such as wheat, rice, beef and fruits in Malaysia. They believe that Malaysia can bring latest technology in the field of agro-food, cold chain maintenance techniques, concentrate and pulp processing and canning fruits. The Pakistani side could also convince the foreign country for reducing import taxes on mangoes, allowing import of milk, providing guidance to investors and traders from both countries and organising cultural events.
FTA helps enhance bilateral trade with Malaysia
