Pakistan-Malaysia trade increased by 35 per cent after free trade agreement
Karachi, June 14, 2012 (PPI-OT): Consul General of Malaysia, Abu Bakar Mamat said that Malaysia and Pakistan recorded 25 and 10 per cent increase in bilateral trade in 2010 and 2011 respectively. The positive growth was subsequent to the signing of FTA (free trade agreement) between the two countries in 2007. He added that there is a need to create awareness among the manufacturers on the liberalisation of trade in goods and services and the elimination of tariff on their respective products.
He mooted the idea to hold seminar both in Pakistan and Malaysia in this regard. Addressing a luncheon meeting at the Korangi Association of Trade and Industry (KATI) on Wednesday, the Malaysian diplomat said that a Malaysian company will start the upgrading work of M-9 dual carriageway from Karachi to Hyderabad and the work is expected to start very soon.
Responding to a question on Malaysia Airlines’ decision to cease operation in Pakistan earlier this year, he said that it was part of the airline’s route rationalisation and that the closure of its operation has nothing to do with the law and order situation in Karachi.
He also said that Malaysia is currently importing rice mainly from Thailand and Vietnam and Pakistani rice exporters may want to be more aggressive in penetrating Malaysian market and increase their exports.
With regard to the trade imbalance with Malaysia, he advised the Pakistani manufacturers to re energise and revitalise branding efforts of their manufacturing goods for export to Malaysia. He informed that Malaysia and five other ASEAN members have signed ASEAN Free Trade Agreement and Pakistani exporters can make Malaysia as the hub to enter ASEAN market of 600 million population.
He stated that the two brotherly countries recorded $2.8 billion trade volume in 2011 in which could be increased with rejuvenated efforts from both sides. He invited trade delegation from KATI to visit Malaysia to further explore Malaysian market.
The Patron In-Chief, KATI S M Muneer said that Pakistan looks to the Asia particularly Malaysia under its “Look to the East” policy and wants to improve its trade with Malaysia as Pakistan is enjoying brotherly and cordial relations with Malaysia.
He however showed his concern over the low volume of trade between the two countries saying that there is much bigger potential of bilateral trade lies between the two countries. He advised the Pakistani exporters to focus on quality and branded items’ export to Malaysian market.
The President, All Karachi Industrial Alliance, Mian Zahid Hussain said that the time has come to the Pakistani manufacturers to focus on eastern markets due to prevailing situation. He emphasized on the need of frequent exchange of trade delegations between the two countries.
The Chairman, KATI Ehtesham Uddin invited Malaysian importers to visit Expo Pakistan being held in October in Karachi this year. He pointed out that Figures of imports and exports of both the countries show that the trade balance is in favour of Malaysia and sincere efforts are required to improve further trade between both the countries.
For more information, contact:
Korangi Association of Trade and Industry (KATI)
ST-4/2, Sector 23, Korangi Industrial Area,
Tel: +9221 3506 1211 -2
Cell: +92346 2012346
Fax: +9221 3506 1215