Indonesian Minister for Trade Gita Wirjawan on Thursday said that the Preferential Trade Agreement (PTA) signed with Pakistan earlier this year would become operational in 15 days.
He said the implementation of PTA signed on February 4, 2012 will not only improve relations between the two countries but also provide a level playing field to all exporters of edible oil who have vested interests in a lucrative Pakistani market.
Wirjawan stated this while talking to a select group of edible oil importers led by Pakistan Vanaspati Manufacturers Association (PVMA) Senior Vice President Atif Ikram Sheikh who is also Islamabad FPCCI Capital Office Coordination Chairman.
Akbar Iqbal Puri, Malik Sohail, Leonard F Hutabarat, Asia Pacific and African Affairs Director General Muhammad Hartantyo, Indonesian ministry of foreign affairs representatives and others were also present in the meeting arranged by the Indonesian embassy.
Wirjawan gave assurances that Indonesia will provide every possible facility to Pakistani importers. Sheikh and Puri, on the occasion said the imposition of PTA will provide incentives that will boost Indonesian exports into Pakistan.
Initially, Pakistan will save 35 USD per ton on import of palm oil from Indonesia which will help the country save a total of 70 million dollars of precious foreign exchange per annum. Sheikh further said Indonesia imports will not only help importers save money but will assist manufacturers in clipping prices which will benefit the common man.
He also stated that PTA will help Pakistani exporters gain enhanced access to Indonesian markets on 216 tariff lines at the preferential rate. This will be a great opportunity for Pakistani businessmen dealing in fresh fruits, cotton yarn, cotton fabrics, readymade garments, fans, sports goods, leather goods and other industrial products, he said. He observed that this crucial development will help stakeholders anticipate future developments in an increasingly challenging global economy and enable diversification of exports, thereby increasing their resilience amidst the current economic meltdown.
