ISLAMABAD: Pakistan’s exports to Indonesia jumped 86 per cent year-on-year to $91 million in the first four months of the current fiscal year, mainly on the back of a rise in kinno exports, according to commerce ministry data.

Kinno exports more than doubled to $48m during the four-month period after Pakistan convinced Indo­nesia to lift a ban on kinno imports. The ban was lifted for three months last year.

The Ministry of Com­merce and the Trade De­­­ve­lopment Authority of Pak­istan held exhibition and trade shows in Indonesia to help fresh-fruit exporters explore the Indonesian market.

Exports of products like raw cotton, 100pc broken rice, woven fabric, sardines (a nutrient-rich fish), leather and copper scrap are also on the rise and are likely to end the fiscal year with a high growth.

Both countries signed a preferential trade agreement (PTA) in 2012 which became operational in 2013. Pakistan’s exports to Indo­nesia were $156m in 2016, but have a potential to grow.

Pakistan’s exports to Indonesia face hurdles due to the arbitrary implementation of technical barriers to trade by the Indonesian authorities.

On the other hand, annual imports from Indonesia amount to $2bn.

Pakistan and Indonesia are now reviewing their PTA, and a third meeting in this regard is scheduled for August. During previous 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 the issues.

Malaysia is watching this review closely as it lost a substantial part of its palm oil trade to Indonesia due to the PTA between Pakistan and Indonesia.

Published in Dawn, June 25th, 2017