Exports to Indonesia grow 86pc to $91mln in Jan-April

ISLAMABAD: Pakistan’s exports to Indonesia have seen a tremendous growth of 86 percent year-on-year to $91 million in the first four months of the calendar year as citrus fruit exports grew during the period, official data showed. 

The country’s exports amounted to $49 million in the corresponding period a year ago.

Export of kinnow (orange), which is the country’s signature citrus fruit, to Indonesia reached $48 million in the January-April period of 2017 as compared to $20 million in the period a year earlier.  

Officials said this phenomenal increase in one season is a result of concerted efforts by various departments of government, including Pakistan embassy in Jakarta, Trade Development Authority of Pakistan (TDAP) and kinnow exporters. Participation in various exhibition and trade shows in Indonesia, sponsored by the ministry of commerce and TDAP considerably helped fresh fruit exporters explore Indonesian market. 

The officials said Pakistan convinced Indonesia’s ministries of trade and agriculture to lift ban on imports of kinnow from Pakistan for the first four months of the year. Last year, the ban was lifted for merely three months. Kinnow is available for exports for five months (from December to April). 

They said exports to Indonesia face hurdles due to arbitrary implementation of technical barriers to trade by the Indonesian authorities. The ban on kinnow is one such unwanted barrier, they added.

The country annually exports around 350,000 tonnes of orange to different countries and earns more than $200 million in export revenue.    

Both the countries signed a preferential trade agreement (PTA) in 2012 which became operational in 2013. Pakistan’s exports to Indonesia stood at $156 million in 2016. The exports include raw cotton, broken rice, woven fabric, sardine fish, leather and copper scrap. All are showing positive trends, said the officials. Yet, Indonesia exports two billion dollars worth of items to Pakistan, indicating trade balance in favour of the former.  

Pakistan and Indonesia are in the process of reviewing PTA. Third meeting in this regard is scheduled to be held in August. During the previous review meetings, both sides shared the lists of their concerns regarding the implementation of PTA during the first three years and agreed to take necessary steps to address those concerns. 

Officials said Malaysia is closely watching this review process as since the agreement was signed Malaysia lost substantial part of its palm oil trade to Indonesia. Pakistan’s palm oil import is estimated at two billion dollars.

Malaysia is continuously pursuing for further expansion of its free trade agreement (FTA) with Pakistan.

First meeting of FTA review exercise has already been held in Islamabad. Malaysia is willing to offer Pakistan more concessions on items of its prime interest in exchange of further concessions on palm oil.