Indonesia has abolished import duties of up to 30 per cent on 20 some Pakistani products. The aim is to secure the future of more than $1 billion of palm oil exports to the South Asian economy that is shifting to a new supplier.


In January, Indonesia and Pakistan finalised the review process for the preferential trade agreement. Indonesia has agreed to grant tariff concessions on major exports from Pakistan, including zero per cent tariff on tobacco, textile fabric, rice, ethanol, citrus, woven fabric, T-shirts, apparel and mangoes.


On an annualised basis relaxation of tariffs will enhance exports from Pakistan to Indonesia by 133 per cent and reduce the deficit by 15 per cent. Indonesia has long been mulling import duty concessions for 20 tariff lines, including rice, mangoes and value-added textiles, under the revised preferential trade agreement originally signed with Pakistan in February 2012.