Pakistan, Malaysia negotiating cut in duties on tariff lines

ISLAMABAD: Pakistan and Malaysia are negotiating further reduction in duties on the existing and additional tariff lines under the free trade agreement (FTA) to facilitate businesses of the two countries, High Commissioner of Pakistan in Malaysia Syed Hassan Raza said.

According to a statement received here, he was addressing a seminar held in Kuala Lumpur on “Doing Business with Pakistan”, jointly organised by the Malaysia External Trade Development Corporation (MATRADE) and High Commission of Pakistan, Malaysia.

Over 200 Malaysian companies and Pakistani businessmen attended the seminar. The high commissioner highlighted the investment opportunities and trade potential in Pakistan and said there are numerous opportunities for the companies in the two countries having FTA since 2008.

Current trading basket by both the countries is limited to palm oil, fibre, board, rubber, electrical and electronic equipment from Malaysia, while from Pakistan main items being exported are rice, maize, cotton, textiles and vegetables.

Diversification of products is key to boost trade between the two countries, he added. The present investment regime is the most liberal in the region, he said, adding that foreign equity could be 100 percent owned by the foreign investor and there are no restrictions on the repatriation of profits, the high commissioner said.

Almost all sectors are open for investment and one-window facilitation is one of the highlights of the new policy, he added. Special incentives are available for auto sector investors under the new Auto Policy 2016/21. He emphasised Pakistan is a stable, peaceful country and it welcomes foreign investors who may visit any part of the country.

He also underlined the importance of promoting tourism between the two countries and informed about various breathtaking and scenic locations, as well as numerous opportunities for shopping at prices much lower than many other countries in the region, especially offering excellent textile and other consumer goods.

The high commissioner highlighted the recent developments of economic cooperation between China and Pakistan, which has culminated in the China-Pakistan Economic Corridor (CPEC) as part of One Road One Belt initiative.

It is as a game changer for the entire South and Central Asian regions in terms of connectivity, access, reduction in distance and time for movement of goods. This would enhance development prospects of the region and provide investment and trade opportunities, he added.

Earlier, MATRADE Chief Executive Officer (CEO) Dato Dzulkifli Mahmud highlighted the role of his company in the promotion of bilateral investment and trade between Malaysia and Pakistan.

Mahmud highlighted the advantages of doing business with the Pakistani companies and said the two countries have Malaysia-Pakistan Closer Economic Partnership Agreement (MDCEPA) since 2007, which became operational in 2008.

There are many consumer products under zero tariff regime, he said, adding that Pakistan offers attractive opportunities in all fields of trade. Dzulkifli also mentioned that 10 Malaysian companies are working in Pakistan in various sectors. He urged the Malaysian service sector to explore opportunities in Pakistan.

Meanwhile, during a penal discussion, panelists highlighted the regulatory and working environment in Pakistan and explained the ease of doing business and facilitation provided to them while establishing their business entities.

They projected that recent economic indicators of Pakistan reflect the country is on the path of development and the future of new investors is promising in terms of returns and security of investments.