Indonesia has issued formal notification for correction of Indonesia-Pakistan Preferential Trade Agreement (PTA) by offering immediate market access for 20 products of Pakistan’s prime interest. The priority products include mangoes, broken rice, ethanol, tobacco, yarn and fabric, home textile, terry towel, apparel and knitwear.

A Memorandum of Understanding (MoU) to amend the PTA between the two countries was signed during the visit of President of Indonesia in January 2018. The balance of trade is highly tilted in favour of Indonesia. At the time of the signing of the PTA, total volume of bilateral trade was $ 1.6 billion, which reached to $ 2.8 billion in 2017-18. All the growth in bilateral trade was due to increase in Indonesia’s exports to Pakistan, which were at $ 1,720 million in 2013-14 and have increased to $ 2,530 million in 2017-18.