Pakistan and Indonesia are working to upgrade their Preferential Trade Agreement (PTA) to a Comprehensive Economic Partnership Agreement (CEPA). Officials emphasized expanding trade in goods and services to strengthen bilateral economic ties. Discussions gained momentum during an Indonesian Palm Oil Networking Reception in Karachi on Friday.
Indonesian Vice Minister of Trade Dyah Roro Esti Widya Putri said CEPA would broaden cooperation beyond traditional trade. She highlighted services trade, especially Pakistan’s healthcare sector, as a key area for partnership. Expanding services could help balance bilateral trade between the two countries.
Read more: Jam Kamal sees Pak-Indonesia trade ties entering a ‘stronger phase’
Palm oil remains a strategic commodity, with Pakistan’s demand rising by 22 percent. The vice minister assured continued Indonesian supply and thanked Pakistan for trusting Indonesia as a major supplier. Cooperation is also being pursued in agriculture, food security, Halal certification, health, SMEs, technology, innovation, and defense.
Officials emphasized translating government-level discussions into tangible outcomes through business-to-business engagement. During the event, a Memorandum of Understanding (MoU) was signed under the Indonesia–Pakistan Joint Trade Commission. This MoU strengthens institutional frameworks for bilateral economic cooperation.
Read more: Pakistan, Indonesia sign accords to boost cooperation
Federal Minister for Trade and Commerce Jam Kamal Khan said Indonesia is Pakistan’s largest supplier of edible oil, meeting over 74 percent of demand. He called Indonesia a key partner in Pakistan’s food supply chain and highlighted the strategic importance of ongoing CEPA talks.