ISLAMABAD: Pakistan and Indonesia agreed on Saturday to redress their trade imbalance and revitalise their defence and counterterrorism cooperation.

The agreements were reached during Indonesian President Joko Widodo’s two-day visit to Pakistan that concluded on Saturday.

The presidential visit from Indonesia took place after five years. Earlier, President Susilo Bambang Yudhoyono visited Islamabad in 2012 to attend the D8 summit. Mr Widodo’s visit was given special importance because it was a bilateral one and many saw it as an opportunity for renewal of ties. President Widodo was, therefore, invited to address a joint session of parliament as well.

The annual trade between the two countries has crossed $2 billion, but the trade imbalance in favour of Indonesia has been a major issue. Indonesia, it is believed, benefited more from the bilateral Preferential Trade Agreement (PTA), whereas Pakistan’s exports to Indonesia have dropped significantly. The issues in implementation of the PTA have been under discussion of both sides in their PTA review process.

The Foreign Office said that the two sides had agreed to improve the trade imbalance.

Both countries will redress trade imbalance

There was also agreement on increasing two-way investments and diversifying and expanding economic ties.

It was agreed during a meeting between Prime Minister Shahid Khaqan Abbasi and President Widodo that tariff lines under the existing mechanism of the PTA would be increased. The two leaders also agreed to gradually move the PTA to the level of a Free Trade Agreement.

The two countries would, meanwhile, set up a joint committee to oversee their bilateral defence cooperation agreement. Moreover, training of defence personnel and cooperation between their respective defence educational institutions was also agreed.

Similarly, both countries would intensify counterterrorism cooperation and help each other in building their respective antiterrorism capabilities.

Indonesia reiterated its support for Pakistan’s bid for Full Dialogue Partnership with Asean and Indian-Ocean Rim Association.

Prime Minister Abbasi briefed President Widodo on Pakistan’s efforts to enhance regional connectivity and development, including through China-Pakistan Economic Corridor (CPEC).

He underscored that Indonesian businessmen could benefit from the vast investment opportunities, offered by CPEC.

About the regional situation, he briefed President Widodo about Pakistan’s efforts to promote peace and reconciliation in Afghanistan.

He also appreciated Indonesia’s desire for Afghan peace and reconciliation which was vital for regional security.

The premier also briefed Mr Widodo on the steps taken by Pakistan to resolve all outstanding issues with India, including the core issue of Jammu and Kashmir.

Both President Mamnoon Hussain and Prime Minister Abbasi requested President Widodo to pardon and send back to Pakistan terminally ill Zulfiqar Ali, a death-row Pakistani in Indonesian jail, on humanitarian grounds.

Ali was sentenced on drug trafficking-related charges and questions have been raised about his trial by international rights organisations.

Prime Minister Abbasi and President Widodo also attended the signing ceremony of memorandums of understanding and agreement between the two countries. The documents signed included an MoU on import of LNG and POL products from Indonesia, additional protocol to Preferential Trade Agreement for 20 new tariff lines, an MoU on trade facilitation and MoU between Foreign Service Academy and Centre of Training and Education Indonesia.

Published in Dawn, January 28th, 2018