ISLAMABAD
In an unprecedented diplomacy by commerce ministry officials, Indonesia has agreed to lift the ban on import of Pakistani Mango as well as the export of Kinnow for the full season.
The 3rd Pakistan and Indonesia Dialogue was held in Jakarta recently in which the officials of both countries reviewed the Preferential Trade Agreement (PTA) and discussed steps for making more effective measures for future.
Information available with Online indicates that Pakistan will be the only country which can now export mango to Indonesia. “Jakarta has agreed to lift the ban on import of Pakistani Mango for the entire season (May to September),” a source privy to the development said, in addition to this he says that Indonesia has further agreed to allow export of Kinnow for a full season that consists of December to April.
With Kinnow and Mango export, Pakistan expects an increase of around 50 million dollars, sources said.
Pakistan produces nearly a million metric tons of mangoes on yearly basis. The country exports 6 to 7 per cent of mango in its total production and its share in the global market is around 3.8 per cent. The country’s mango exports during the last three years have gradually declined from the peak of 103,487 MT in 2012-13 to 64,111 MT in 2015-16.
Sources said that Indonesian authorities have further agreed in principle to unilaterally include 20 products of Pakistan’s prime interest in PTA for which they have sought 2 months’ time to consult with stakeholders.
The Insider says that Pakistan’s export to Indonesia will double from approximately 170 million dollars to 375 to 400 million dollars this year with the addition of 20 tariff lines in PTA.
On the other hand, Indonesian exports grew 46.1 per cent to1.9 billion dollars from 1.3 billion dollars during the years 2012-15.
The Pakistan-Indonesia Preferential Trade Agreement was signed in February 2012. Some important concessions were granted under the PTA included Indonesia’s full concession on Kinnow and Pakistan’s 15 per cent Margin of Preference on the standard tariff rate to palm oil products.
Both countries’ officials had reviewed the PTA two times before to this negotiating round, however substantial progress has not been made.
Officials said that these benefits will definitely increase the Pakistani exports to Indonesia.
