Indonesia and Pakistan signed a Preferential Trade Agreement (PTA) in February 2012. This agreement came into effect from September 1 following the signing of an additional Mutual Recognition Agreement (MRA). The agreement had previously been held up by non-tariff issues including plant quarantine issues that have now been resolved.
Under the agreement Pakistan has reduced duty on more than three hundred categories of import from Indonesia, including complete exemption from customs duty on 82 of those items. Bilateral trade is expected to reach USD 5.5 billion by the end of 2014.
