ISLAMABAD – Indonesia has announced to abolish quota system to enhanceimport of Kinnow from Pakistan while extending facilities on purchaseagreement of Pakistani rice of 1000 million ton till year 2019 , and alsoassured about flexibility in Rice exports tender by keeping the longtransit time from Pakistan.
A meeting of Indonesia – Pakistan business forum was held during the visitof Indonesian President to Pakistan in which Pakistani business communitywas represented by the Vice President – FPCCI Waheed Ahmed.
The Vice President of Indonesian Federation of Chamber & Commerce and tradeco-coordinator also participated in this meeting. Stressing the need forenhancing mutual trade and removal of trade barriers, the Indonesianminister of commerce Enggartiasto Lukita announced to abolish restrictionof quota system for import of Pakistani Kinnow on impending demand ofPakistani exporters.
Representing Pakistani business community , Waheed Ahmed said that people–to people contact , direct flights options , banking facilities , exchangeof trade delegations and organizing exhibitions would lead to enhancementof export from Pakistan to Indonesia upto US$ one billion within 2-3 years. Currently the trade between Pakistan & Indonesia is a US$ 2.1 billion,however the export from Pakistan is limited to US$ 138 million.
Cotton thread and Cotton are not part of Preferential trade agreement (PTA)and similarly the toughest quarantine requirements on Meat and meatproducts have also been imposed while condition of PRA for Pakistani mangohas been introduced which is tedious and time consuming process . Due tothis reason Pakistan is not exporting mango to Indonesia. Welcoming thedecision of removal of quota system on import of Pakistani Kinnow byIndonesia, he said that it would assist to attain balance of trade whileimmediate implementation of this decision would double the export ofPakistani Kinnow to Indonesia during the current session, Waheedanticipated.
With extension of this facility, the export of Kinnow to Indonesia wouldenhance from 34000 ton to 60,000 ton fetching valuable foreign exchange ofUS$ 33 million for the country. Waheed Ahmed apprised the Indonesiancommerce minister that while Indonesia and Pakistan signed PTA in 2015 , itwas assured by Indonesia that by year 2019 one million ton Pakistani ricewould be imported , however due to unfavourble and unsuitable conditions Inthe tender , this volume could not be materialized.
Recently two Pakistani companies have acquired an order to export 60,000ton of Pakistani rice to Indonesia through the process of bidding which wasanticipated to generate foreign exchange of US$ 30 million but since thedelivery time in this tender was unrealistic because long transit time wasnot taken into account which made it almost impossible for Pakistan toavail this unique trade opportunity.