RECORDER REPORT

KARACHI: Pakistani exporters have suggested that the government should urge President Joko Widodo of Indonesia, who is arriving on a two-day visit on Friday, to support removal of trade barriers between the two countries.

The vice president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and the patron-in-chief of the All Pakistan Fruits and Vegetables Exporters, Importers and Merchants Association have appealed to President of Pakistan Mamnoon Hussain and Prime Minister Shahid Khaqan Abbasi that during the visit of the president of Indonesia, elimination of barriers encountered by Pakistani exporters to Indonesia should be emphasized so that the two countries can befit from the Preferential Trade Agreement (PTA) through enhancement of mutual trade.

He said that the balance of trade between the two countries is in favour of Indonesia. “We should insist having similar trade concessions like Indonesia is extending to China and Thailand,”, he added.

Exports of Pakistani agriculture produces like rice, fruits and vegetables can be enhanced by up to one billion dollars within three years. However, introduction of a quota system by Indonesia is proving to be a trade barrier in enhancement of export of Pakistani fruits, particularly kinnows, he said.

Indonesia has imposed a quota system from the current season to December 31, limiting the export volume of kinnows, Waheed said.

Under the quota system transit time of up to 25 days poses problem since the export consignments arriving there from Pakistan after this period are rejected. Fourteen hundred containers of kinnows were exported in the previous season while 2,500 kinnow containers are expected to be exported during the current season, and thus Indonesia can emerge as a big market for Pakistani Kinnow, however to attain that, the barriers such as quota system need to be abolished, he stressed.

The former chairman of PFVA Waheed said that Pakistani exporters managed to procure export contracts of 65,000 tons of rice by successful bidding against stiff competition from Thailand and Vietnam. However, Indonesia has given a deadline for execution of this order by Feb 28.

The terms and conditions issued by an Indonesian organization, Bulog, creates difficulties for Pakistan in completion of the order by that date because of the lengthy transit time 20 to 30 days of shipment’s arrival in Indonesian port, he said. He added that such terms and conditions are favourable for traditional business partners Vietnam and Thailand because the transit time from there is only 2 to 4 days.

Also due to the commencement of new Chinese year  there would be holidays in the Far Eastern countries which would make it very difficult to execute the order within the given deadline because due to the holidays there could be inordinate delays and congestion on seaports so delivery of rice export consignment may be delayed.

It is mandatory that a deadline of tenders to complete the order should be extended to mid-April. So the Pakistani exporters may successfully complete export order to increase trade between Pakistan and Indonesia and create a trade balance system between the two countries, he said.

He asked the Ministry of Commerce to follow the mutual PTA in its true spirit and Pakistan should insist on removal of trade barriers during visit of the Indonesian president.