ISLAMABAD, Aug 20: Pakistan and Indonesia will sign a memorandum of understanding (MoU) on Thursday for the promotion of trade between the two countries.

A senior official in the commerce ministry told Dawn on Wednesday the MoU will be signed by Commerce Minister Humayun Akhtar Khan and Indonesian Trade and Industry Minister Ms Rini M. Sumarno Soewandi.

The MoU would focus on cooperation in different sectors, exchange of trade delegations to identify further areas for cooperation.

The visiting Indonesian minister during her stay would meet President General Pervez Musharraf and ministers for privatization and finance.

During the meeting the two ministers are expected to reach an understanding that Pakistan will import palm oil, paper, beetle nut and broomsticks and tea from Jakarta, while against these products Indonesia will import from Pakistan sugar, wheat and rice etc.

It was also expected that Pakistan would demand for reduction in import duty on citrus. Indonesia has levied 50 per cent import duty on citrus, due to which export of citrus to Jakarta was negligible. Pakistan has already offered cooperation in the restructuring of Indonesian sugar industry including supply of new machinery.