Pakistan and Indonesia have taken a major step to deepen their economic partnership by agreeing to upgrade their existing Preferential Trade Agreement (PTA) into a more robust Comprehensive Economic Partnership Agreement (CEPA) targeted for 2027.
This development was announced following high-level talks in Islamabad on February 10, 2026 (local time), amid ongoing efforts to boost bilateral trade, investment, and cooperation.
The announcement highlights the strong diplomatic ties between the two Muslim-majority nations, building on recent milestones such as Indonesian President Prabowo Subianto’s visit to Pakistan last year and discussions at international forums.
Strategic Push for Enhanced Ties
Prime Minister Shehbaz Sharif met with Indonesian Minister for Investment and Downstream Industry Rosan Roeslani, who led a delegation to Pakistan.
PM Sharif expressed Pakistan’s keen interest in learning from Indonesia’s successful sovereign wealth fund model to strengthen its own economic framework.
He emphasized the brotherly relations and the positive momentum from high-level engagements.
Minister Roeslani conveyed warm regards from President Prabowo and reaffirmed Indonesia’s commitment to removing trade barriers.
Both sides agreed to expedite the transition, focusing on expanded exchanges in goods, services, and investments.
Expected Benefits and Timeline
The upgrade from PTA to CEPA is expected to significantly benefit both economies by facilitating broader market access, encouraging joint ventures, and promoting sustainable growth.
It follows earlier talks, including those in January 2026 on accelerating the process.
Officials from both countries, including Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar, Commerce Minister Jam Kamal Khan, and Finance Minister Muhammad Aurangzeb, participated in the discussions.
The target remains 2027 for full implementation, with continued work on implementing the current PTA terms in the interim.
This move aligns with Pakistan’s efforts to diversify trade partners and Indonesia’s push for comprehensive partnerships in the region.