Pakistan and Indonesia agree to enhance their economic collaboration.

Pakistan and Indonesia have reinforced their economic alliance by signing a Memorandum of Understanding (MoU) to establish the Indonesia–Pakistan Joint Trade Committee (JTC), aimed at enhancing dialogue, facilitating cooperation, and collaboratively addressing opportunities and challenges in bilateral trade, as stated by the Pakistani commerce ministry on Saturday.

The advancement follows a month after both nations executed seven memoranda of understanding to enhance collaboration in trade, higher education, halal certification, and health during Indonesian President Prabowo Subianto’s two-day visit to Islamabad.

The Memorandum of Understanding was executed after to productive high-level discussions spearheaded by Commerce Minister Jam Kamal Khan and visiting Indonesian Vice Minister of Trade Ms. Dyah Roro Esty Widya Putri, signifying a mutual dedication to enhancing commercial relations.

Khan emphasized Indonesia’s strategic significance within the Association of Southeast Asian Nations (ASEAN) and its prospective function as a regional center for promoting trilateral and regional economic collaboration.

“Pakistan has the potential to be a dependable supplier of minerals, cosmetics, pharmaceuticals, and agricultural products for the Indonesian market,” he stated.

Last month, Prime Minister Shehbaz Sharif announced that Pakistan’s bilateral commerce with Indonesia amounted to $4.5 billion, with over 90 percent consisting of palm oil imports from Indonesia. He stated that both parties deliberated on “corrective measures” to equilibrate this trade during President Subianto’s visit to Islamabad.

The Commerce Minister Khan announced Pakistan’s plan to host a Single-Country Exhibition and economic Forum in Jakarta, inviting ASEAN member states to promote Pakistani products and enhance regional economic connections, as stated by the commerce ministry.

The Trade Development Authority of Pakistan (TDAP) requested Indonesian assistance for the prompt announcement of fruit import quotas, the streamlining of certification requirements for Pakistani exports, the notification of rice import quotas, and enhanced market access for industrial-grade potatoes from Pakistan.

The commerce ministry stated, “Both parties consented to collaborate on enhancing the current Preferential Trade Agreement (PTA), aiming to advance towards a Comprehensive Economic Partnership Agreement (CEPA) to facilitate increased trade and investment opportunities.”