ISLAMABAD: Prime Minister Shehbaz Sharif and Indonesian President Joko Widodo on Tuesday agreed to comprehensively review and expand the Indonesia-Pakistan Preferential Trade Agreement (IP-PTA), a $4 billion framework in force since 2012, to eliminate the existing trade imbalance that currently favours Jakarta and unlock fresh bilateral trade potential.
The leaders directed their commerce ministries to immediately begin negotiations to broaden product coverage, adjust tariff concessions, and incorporate emerging sectors, particularly halal-certified food, pharmaceuticals, cosmetics, agriculture, and information technology. Both countries, home to two of the world’s largest Muslim populations, see the halal industry as a multi-billion-dollar opportunity.
During wide-ranging talks at the Prime Minister’s Office marking 75 years of diplomatic ties, the two sides also committed to deepen investment cooperation. President Widodo offered collaboration between Indonesia’s new sovereign wealth fund Danantara and Pakistan’s Special Investment Facilitation Council (SIFC), with priority sectors including health, education, vocational training, and infrastructure.
Defence and security cooperation, people-to-people contacts, and academic exchanges were also high on the agenda, with both leaders pledging to elevate the relationship to a strategic level.
On regional issues, Prime Minister Sharif and President Widodo reiterated unwavering support for the Palestinian cause and a just resolution of the Jammu & Kashmir dispute in line with UN Security Council resolutions. Sharif appreciated Indonesia’s proactive diplomacy and humanitarian assistance in Gaza.
Trade between Pakistan and Indonesia has grown steadily under the IP-PTA, but Pakistan’s exports remain significantly lower. Officials said the revised agreement is expected to provide greater market access for Pakistani textiles, rice, fruits, sports goods, and surgical instruments, while Indonesia seeks easier entry for palm oil derivatives, paper products, and machinery.A joint statement issued after the meeting described the visit as a “milestone” in transforming the historic fraternal ties into a robust economic partnership. President Widodo extended an invitation to Prime Minister Sharif to visit Indonesia next year.