Pakistan Business Council, a business advocacy body, on Friday said that Indonesia has agreed to abolish import duty on twenty items from Pakistan, due to successful lobbying by the federal government. The PBC noted that hitherto, the duty on these items ranged from 7.5 percent to 30 percent. Aside from mangoes and rice, the major benefit will accrue to the value-added textiles sector as well. The PBC estimates an incremental export potential arising from the duty relaxation of US$320 million, subject to capacity and quality competitiveness of the offerings.
In 2017, Pakistan imported goods (mainly vegetable oil) worth US$ 2.4 billion from Indonesia whereas its exports to that country amounted to US$ 241 million, leaving a trade deficit of US$2.2 billion.
On an annualized basis, the relaxation of tariffs will enhance exports from Pakistan to Indonesia by 133 percent and reduce the deficit by 15 percent. The PBC assists the government through research on trade opportunities and its 'Make-in-Pakistan' thrust is aimed at creating jobs, boosting value added exports and encouraging import substitution.