TRADE POLICY SPEECH 2009-10
Announcement by the Trade Development Authority of Pakistan
Useful links
Ministry of Commerce
Ministry of Finance
Ministry of Industries
Trade Development Authority of Pakistan
Board of Investment
Federal Board of Revenue
Federation of Pakistan Chambers of Commerce & Industry
Ministry of International Trade and Industry (Malaysia)
Malaysia External Trade Cooperation (Malaysia)
Public Procurement Regulatory Authority
Malaysia Pakistan Bilateral Trade has doubled in Two Years.
As per figures obtained from MATRADE, bilateral trade during January – December 2008 amounted to US$ 1861.514 million. Malaysia’s imports from Pakistan amounted US$ 127.561 million, as against its exports to Pakistan US$ 1733.953 million. Following are the figures of trade for the past three years;
Bilateral Trade January – December 2006
Malaysia Exports to Pakistan Malaysia Imports from Pakistan
Total: US$ 882.44828 US$ 62.109142
January - December 2007
Malaysia Exports to Pakistan Malaysia Imports from Pakistan
Total: US$ 1231.5331 US$ 81.826
January – December 2008
Malaysia Exports to Pakistan Malaysia Imports from Pakistan
Total: US$ 1733.953 US$ 127.561
2 Eight Pakistani Delegates Attended World Chambers Congress inMalaysia.
The Federation of Malaysian Manufacturers (FMM), in collaboration with The International Chamber of Commerce (ICC) and World Chambers Federation (WCF), hosted the 6th World Chambers Congress (WCC 2009) at the Kuala Lumpur Convention Centre from 3-5 June 2009. Malaysia is the first South East Asian country to host the event with the theme “Leading Sustainable Growth and Change”. Over 900 delegates from 180 chambers of 175 countries attended the event this year. During the three days Congress, 3 Plenary and 21 workshop Sessions were held to cover wide range of topics e.g. current economic crisis, food, water and energy crisis, the economic implications of climate change etc. Pakistan was strongly represented by the following persons;
- Mr Athar Jamal Abro, Director General, TDAP Karachi.
- Rana Ijaz Ahmed Khan, Advocate Supreme Court/ Former Law Minister.
- Ms Assia Saail Khan, Chairperson Women Entrepreneur Development,
- Lahore Chamber of Commerce & Industry.
- Mr Tariq Rangoonwala, Regional Coordinator, ICC, Karachi
- Mr Javaid Basini, Secretary & Permanent Head, ICC, Karachi
- Rana Muhammad Ahmad, Advocate
- Mr Shaban Khalid, Vice President, Islamabad Chamber of Commerce & Industry.
- Mian Waqas Masud, Chairman Youth Forum, Islamabad Chamber of Commerce.
His Excellency the High Commissioner of Pakistan at Kuala Lumpur and the Commercial Counsellor attended the Opening & Closing ceremonies and Royal Gala Dinner and interacted with Pakistani delegates.
3. MATRADE sponsored 8 member business delegation’s visit to Pakistan.
A delegation of Malaysian businessmen visited Karachi, Islamabad and Lahore from 25 May – 03 June 2009, to explore Pakistan’s trade potential. Malaysian businessmen held various meetings with Pakistan government officials in trade and investment promotion offices, as well as with the business leaders. MATRADE organized the visit in a efforts to enhance bilateral trade in this period Malaysia – Pakistan Closer Economic Partnership Agreement (FTA). Pakistan being an agro-based economy has a great potential to compliment Malaysian efforts in becoming international hub for Halal and Herbal products.
4. OIC Today Business Magazine has published an exclusive interview with His Excellency, the High Commissioner of Pakistan, in its latest Issue (Volume 20 / 2009). Dato’ Raja Mohd Abdullah, the Chief Executive Officer of OIC International Business Centre& Ramcel Media, as well as Chairman of OIC Chamber of Commerce, has offered to act as Official Media Partner for Expo Pakistan to be held at Karachi in December 2009. Pakistan being an important economy of OIC and also a member of D-8 Group, has a great potential for trade and investment.
PAKISTAN – MALAYSIA PAKISTAN CLOSER ECONOMIC PARTNERSHIP AGREEMENT (FTA)
Publish Date : 11/3/2007 2:47:00 PM Source : DS-FT1
1.The Comprehensive Free Trade Agreement (FTA) for Closer Economic Partnership between Pakistan and Malaysia was approved by the Cabinet on 6th November, 2007. It was signed on 08-11-2007 at Kuala Lumpur Malaysia. Lt-Gen (Retd) Tahir Mahmud Qazi, Pakistan’s High Commissioner to Malaysia, signed the Agreement on behalf of the Government of Pakistan and Her Excellency Rafidah Aziz, Minister of International Trade & Industry (MITI), Government of Malaysia represented her government. Mr Shahid Bashir, Joint Secretary and Abdul Qadir Memon, Deputy Secretary Ministry of Commerce were also present at the time of the signing of the Agreement.
2. This Agreement is the 1st bilateral FTA between two Muslim Countries - members of OIC. This agreement is Pakistan’s first comprehensive FTA incorporating trade in goods, trade in services, investment and Economic Co-operation and Malaysia’s first bilateral FTA with any south Asian country.
3. This Agreement shall provide a strong foothold to Pakistan in the ASEAN region and help Pakistan achieve summit level partnership with ASEAN.
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4. The negotiations with Malaysia on a comprehensive FTA started in early 2005. The Early Harvest was successfully negotiated and signed in December 2005 during the visit of Prime Minister Shaukat Aziz to Malaysia in which both countries provided market access to a limited number of products. After the implementation of the Early Harvest, Pakistan’s negotiating team under the leadership of the Ministry of Commerce and comprising all the stakeholder ministries continued the negotiation to conclude the Agreement.
5. Due to ASEAN FTA, current intra - ASEAN trade is at preferential or zero tariff. ASEAN also has an operational FTA with China, in which exports from China will get preferential treatment in Malaysia. ASEAN is also negotiation FTAs with Japan, Australia, New Zealand, South Korea and India. Further Malaysia is negotiating bilateral FTAs with USA, India and Japan.
6. Exports from Pakistan were being subjected to higher tariff in Malaysia as compared to similar goods exported from ASEAN member countries. Resultantly, Pakistan was losing market in Malaysia for its core export product. This agreement would provide a level playing field to Pakistani products in Malaysian market.
7. The Agreement is a timely initiative by the Government of Pakistan to secure market for its export products in Malaysia and deepen the economic and trade relationship with an important member of the region.
8. For trade in Goods Pakistan will eliminate tariff on 23% of the current imports from Malaysia. On the other hand Malaysia will eliminate tariff on 78% of imports from Pakistan.
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9. Pakistan will reduce tariff on palm oil by 10% MOP on January 01, 2008 The prices of palm oil in the international market have witnessed an unprecedented increase. During the last one year its price has increased from US 400 to US $ 900 PMT. It is likely to reach US $ 1000 by the end of this year. There will, however, be no reduction on the rates of sales tax / Federal excise duty levied at 15% and withholding tax charged @ 2% on the imported palm oil.
10. Pakistan has given market access to Malaysia on basic raw materials, intermediate goods and machinery. Pakistan has obtained market access for its core export products like fruits & vegetables, seafood, beverages, confectionary, biscuits, gems & jewellery, cotton yarn, cotton fabric, blankets, bed linen, other home textile products and tents & tarpaulins, medicaments and surgical instruments etc.
11. In trade in services, both countries have provided WTO plus market accesses to each other. In the field of computer and I.T related services, Islamic Banking, Islamic Insurance (Takaful) Pakistan has secured 100% equity in Malaysia. Market access in services provided by both countries will impact positively on investment and trade in goods. Mutual recognition arrangements are also apart of the FTA. These arrangements will provide a framework for accreditation of education institution and academic programme and facilitate the effective and efficient delivery of services.
12. The agreement also contains a chapter on investment to facilitate entrepreneurs of both countries. The incentives available to both countries will not be available to investors from other countries and the bilateral investment treaty signed by Pakistan will have no impact on the investment provisions under the FTA.
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