Pakistan and Indonesia must collaborate on a free trade agreement (FTA), according to Atif Ikram Sheikh, President of the FPCCI. This will help resolve the long-standing bilateral trade deficit, which has reached $3 billion annually for several years. He further said that we should promote Pakistan as a brand by organizing cultural and student exchanges, sending trade delegations from one country to another, and promoting a positive image of Pakistan in Southeast Asia.
With a population of over 600 million and a very strong middle class, the ASEAN countries can be a massive export market for Pakistan, according to Mr. Saquib Fayyaz Magoon, SVP FPCCI. He said that purchasing power parity (PPP) estimates place their combined GDP well over $10 trillion.
The necessity of finding new markets for Pakistani exports in a variety of fields was highlighted by Mr. Aman Paracha, VP of FPCCI, who also stressed the need to broaden Indonesian imports beyond palm oil. He shared the news that FPCCI will be organising a one-country expo in Indonesia to boost commerce and rectify the imbalance.
Pakistan and Indonesia are both friendly countries with great textile production capabilities; so, to collaborate on technology transfers, investments, and joint ventures, Pakistan must think creatively, according to Mr. Asif Sakhi, VP FPCCI. Interdependence, he continued, can help us become powerful complementary economies.
The trade statistics were brought to light by Hanif Gohar, the former SVP and convener of the FPCCI’s Central Standing Committee on Diplomatic Affairs. Currently, Pakistan’s exports amount to only $400 million, while Indonesia’s imports amount to $3.5 billion. This disparity is mainly caused by the heavy import of palm oil from Indonesia.
During a meeting with the FPCCI Central Standing Committee on Diplomatic Affairs, H.E. Dr. June Kuncoro Hadiningrat, Consul General of Indonesia in Karachi, stressed the need to enhance bilateral trade and economic connections between Pakistan and Indonesia.
The possibility of increasing the small number of products that are presently part of the two countries’ bilateral commerce basket was brought to light by H.E. Dr. June Kuncoro Hadiningrat. In October 2024, he sent an invitation to Pakistani enterprises to participate in Expo Indonesia, a venue for fostering connections and investigating potential commercial opportunities.
An impressive lineup of prominent businessmen, including Mian Zahid Hussain, Chairman of PAB-FPCCI, Mr. Khalid Tawab, former SVP of FPCCI, Shabbir Mansha, former VP of FPCCI, and Abid Nisar, Chairman of the Pakistan-Indonesia Business Council, were also in attendance.