ISLAMABAD, Aug 11: Pakistan and Indonesia are likely to start negotiations on a preferential trade agreement (PTA) aimed at enhancing trade volume.

Officials in the ministry of commerce told Dawn on Monday that the first round of negotiations would start during the coming visit of Indonesian Trade Minister, Rini M. Sumarno Soewandi to Pakistan.

The Indonesian trade minister is scheduled to visit Islamabad on August 20.

During her visit, officials said the Indonesian trade minister would discuss bilateral trade issues with Commerce Minister Humayun Akhtar Khan.

The meeting would discuss at length the modalities of the proposed PTA and its implementation. This agreement would lead to free trade agreement between two countries, said officials.

The two ministers are also likely to sign a memorandum of understanding (MoU) at the end of the meeting.

Prior to the Indonesian trade minister visit to Pakistan, officials said a four-member technical team led by director ministry of trade, Indonesia, Slamed Effendi would arrive here on August 18.

During their two day stay in Pakistan, they would discuss with Pakistani authorities technical issues regarding enhancing of trade volume between the two countries and would identify areas for cooperation in trade.

Officials said at the two trade teams would identify areas for giving concession in tariffs.

Recently, a high-level Pakistani official delegation had visited Jakarta to initiate a counter trade agreement for increasing the trade.

The agreement is being firmed up on the initiative of the Indonesian government, which is keen to have a counter trade agreement with Pakistan.

Under the agreement, Pakistan would mostly import palm oil, paper, betel nut and broomsticks, while against these products Indonesia will import from Pakistan sugar, sugar mill, wheat and rice, etc.

According to the officials, it was likely that the counter trade agreement would be signed during the visit of Indonesian trade minister.

Pakistan has already offered cooperation to Indonesia in the restructuring of Indonesian sugar industry including supply of new machinery and up-grading existing machinery and help in improving the cultivation of the sugarcane.