KARACHI, July 23: The Indonesian consul-general has assured Pakistani businessmen of an early finalisation of a free-trade agreement (FTA) and setting up of a business council between the two countries.

During his visit to the office of Pakistan Commodities Importers Association (PCIA), Indonesian consul-general Mustakeem invited the attention of the business community to the 23rd Trade Expo Indonesia to be held in October.

Responding to a suggestion given by PCIA chairman Raees Ashraf Tarmohammad, the diplomat said he would be strongly recommending setting up of a Pakistan-Indonesia Business Council at the earliest.

Mr Mustakeem said that there was a need for entering into an FTA for promotion of bilateral trade between the two countries.

He agreed with the PCIA chief that in the absence of FTA, Pakistani traders were placing their import orders with other countries to get tariff advantage.The Indonesian diplomat assured PCIA members, who mostly import spices, palm oil, tea and betel-nuts from Malaysia, Indonesia and Sri Lanka, to take up the FTA issue with the highest authorities in his country.

Pakistan annually imports around 118,000 tons of betel nut, of which around 95 per cent comes from Indonesia.

Similarly, annual import of palm oil is to the tune of 2.5 million tons, of which, 45 per cent comes from Indonesia.

Pakistan’s exports to Indonesia stand around $73 million and imports around $847 million.

Mr Tarmohammad said that rising food prices in the world market may not increase trade volume between the two countries but in terms of unit price, it was bound to go higher.

The Indonesian diplomat appreciated the role of PCIA in seeking release of betel nut consignment from the customs as it was badly damaging his country’s reputation. Mr Mustakeem urged the PCIA members to exchange trade delegations for promotion of bilateral trade between Indonesia and Pakistan.