Pakistan seeks joint ventures with Malaysia in agriculture, Halal industry

KUALA LUMPUR, Sep 13 (APP): Pakistan and Malaysia on Tuesday decided to effectively utilise various protocols and frameworks available under the Free Trade Agreement (FTA) to boost economic relations and broaden the scope of bilateral trade. The two countries agreed that while the bilateral trade had witnessed a steady increase since the operationalisation of the FTA in January 2008, there still existed a considerable untapped potential to enhance the two-way commerce and broaden the narrow range of products being traded between the two countries. The consensus to work aggressively to forge business partnerships emerged at a day long Pakistan Malaysia Business Forum held here Tuesday under the joint aegis of the Trade Development Authority of Pakistan (TDAP) and the High Commission for Pakistan in Malaysia. The event that drew nearly 100 leading Malaysian and Pakistani investors and businessmen for a day long exchange of business ideas also served as an ideal opportunity for productive networking and business matchmaking. Addressing the inaugural session of the Forum, Pakistans Commerce Secretary Zafar Mahmood said Pakistan attaches great importance to economic and trade relations with Malaysia and a steady growth in the bilateral trade between the two countries is a reflection of the determination that exists on both sides to further deepen these relations. He, however, opined that while a steady increase in bilateral trade was a source of satisfaction, both countries could take their economic relations to a new height by aggressively exploring opportunities for joint ventures in sectors such as agriculture and Halal industry which offered better returns and greater scope for growth given a growing demand for quality food and Halal products in the region. He also underscored the need for addressing the trade gap. Speaking on the occasion, Malaysias Deputy Minister of International Trade and Industry Dato Mukhriz Mahathir welcomed the holding of Pakistan Malaysia Business Forum which, he said, offered a good opportunity to the Malaysian companies to interact, network and build relationships with their Pakistani counterparts. He conceded that trade and investment between Malaysia and Pakistan was still relatively low. We continue to trade in a rather narrow range of products. There is, therefore, untapped potential to enhance two-way trade, he said, adding the role of the private sector is very crucial in implementing the trade and investment framework created by our governments. He also welcomed the setting up of the Malaysia Pakistan Business Council and hoped that the Council would actively advise on how to avoid pitfalls and reduce start-up risks and facilitate entry of potential investors in each others market. Earlier, High Commissioner for Pakistan in Malaysia, Masood Khalid welcomed nearly 100 businessmen and investors representing major sectors of the Malaysian economy and hoped that the event would enable a fruitful interaction with the Pakistani counterparts with a view to identify new areas for potential collaboration and business partnerships.

Over 100 Malaysian traders to attend Business Forum Today 'Pakistan Times' Wire Service KUALA LUMPUR: More than 120 businessmen, including 100 from Malaysia, are set to attend the Pakistan Malaysia Business Forum being held in Kuala Lumpur today, September 13 to explore avenues for joint investment and business opportunities in Pakistan.

The day-long event being organized jointly by the Trade Development Authority of Pakistan (TDAP) and High Commission for Pakistan in Malaysia is likely to serve as an ideal opportunity for businessmen from Pakistan and Malaysia to identify key areas of economic cooperation and forge joint ventures in major sectors, including textile & clothing, rice, fruits and vegetables, sea food, leather and leather products, and electronics. Dato Mukhriz Tun Mahathir, Deputy Minister of Ministry of International Trade & Industry (MITI) will chair the inaugural session of the Forum while Datuk Dr. Rebecca Fatima Sta Maria, Secretary General, MITI, Zafar Mahmood, Secretary Commerce, Government of Pakistan, and Tariq Iqbal Puri, Chief Executive Trade Development Authority of Pakistan (TDAP), will also speak on the occasion. During the visit, the Pakistani delegation headed by Secretary Commerce is also scheduled to attend the inaugural meeting of the Joint Review Committee at MITI Headquarters besides holding separate meetings with key government officials and ministers, including MITI Minister Datuk Seri Mustapa Bin Mohamad, Minister for Plantation, Industries and Commodities, Tan Sri Bernard Dompok and Malaysia External Trade Development Corporation (MATRADE) Chairman Dato Mah Siew Keong. Commenting upon the upcoming Pakistan Malaysia Business Forum, High Commissioner for Pakistan in Malaysia, Mr. Masood Khalid said the event was very significant and a record 120 Malaysian businessmen had already confirmed their participation in it to learn about business opportunities in Pakistan. He said Pakistan and Malaysia were both signatories to the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA), the first bilateral FTA between two Muslim countries and members of OIC. This agreement is Pakistans first comprehensive FTA which incorporates trade in goods and services, investment and economic cooperation and Malaysias first bilateral FTA with any South East Asian country, he said, adding the agreement is a timely initiative by both governments to secure market for their export products and deepen economic and trade relations with each other. He said Pakistan and Malaysia had also established a Joint Business Council to spur trade and investment activities between the two countries. The first joint meeting of the Business Council is expected to take place in November this year. The Joint Business Council will be the right catalyst in translating duty concessions under the Agreement into tangible economic benefits for the business community of both countries, the High Commissioner added. On bilateral trade between Pakistan and Malaysia, Masood Khalid said the trade between the two countries had already grown from US$ 772.47 million in 2005-06 to US$ 2,019.264 million in 2009-10. Pakistans exports to Malaysia during this period had also jumped from US$ 63.9 million to US$ 194.7 million (registering an increase of 204.38%) while Pakistans imports from Malaysia had recorded an increase of 157.52% from US$ 708.5 million to US$ 1,824.54 million. These impressive figures only go to show that FTA has benefited both Malaysia and Pakistan as they have been able to enhance their total trade over the period of its operation. Malaysia now ranks as the 24th largest export destination and 5th largest import source of Pakistan, he said.

Sunday, September 18, 2011

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Edible oil tops food imports

* Increasing demand, dollar rupee parity level raise import bill By Razi Syed KARACHI: Government should also reduce duty on palm oil products imports from Malaysia as it announced 15 percent duty cut as part of a trade agreement between Pakistan and Indonesia. According to Pakistan Commerce Secretary Zafar Mahmood the duty cut would affect in early 2012. Duties on imports of palm oil products range between Rs 9,500 and Rs 10,800 per metric tonne and the share of edible oil in the total food imports remained 41 percent during 12 months of fiscal 2011, importers said. The edible oil imports stood at $2.69 billion out of the total import volume of $5.72 billion. The burgeoning prices of edible oil in international market and an increase in demand remained the main contributing factors in the import rise. We imported more than 2 million tonnes of edible oil products, that catered about 76 percent of the total countrys edible oil consumption, said member of Pakistan Vegetable Oil Mills Association (PVOMA) Nasir Ibrahim. Ibrahim said the countrys demand for palm oil usually increases around 6 to 7 percent before two-three months before start of Ramazan. The international price of RBD was hovering around $1,054 per metric tonne, while the price of palm oil around $1,063 per metric tonne. The country consumes around 2.2 million tonnes edible oil every year out of which 0.63 million tonnes is contributed by the local growers while the remaining is imported to bridge the demand-supply, he added. He said the ITP duty should be increased or decreased in proportion to the changes in the price of imported edible oil in the international market. Ibrahim said the rates of sales tax levied at 16 percent and withholding FED tax charged at the rate of 2 percent on the imported palm oil should also be lessen. Imports are made under Malaysian Palm Oil Concessionary Trade Agreement (MPOCTA), like free-trade agreement (FTA), he added. A crop analyst, Shakeel Ahmad said around more than 50 solvent extraction plants have been operating in Pakistan, which produce 599,500 tonnes of edible oil. According to him, Pakistan has already imported 39,000 tonnes of soybean under PL-480 programme from the USA. Pakistan imports around 8 percent of its total edible oil imports from Indonesia. After linking of the imports with the composite rates of dollar, the unabated increase in edible oil prices has already hit the masses severely as the price of palm oil in local markets has gone up by at least Rs 1190 per 40 kg. He said due to higher import cost, the manufacturers of vegetable ghee and cooking oil were unable to pass on the maximum benefit in case of any slight decline as they were facing multiple problems including power and gas load shedding and production loss.