Indonesia and Pakistan are moving to transform their existing trade arrangements into a Comprehensive Economic Partnership Agreement (CEPA), a development that signals a significant expansion of economic ties, according to the Indonesian Economic Consul, Dr. Syofian Ahmad.
Speaking at a meeting with an Indonesian trade delegation at the Karachi Chamber of Commerce and Industry (KCCI) today, Dr. Ahmad stated that a recently signed joint statement between the two nations” leadership has created new momentum for the upgrade. He noted the current Preferential Trade Agreement (PTA) is limited to approximately 300 tariff lines.
‘With CEPA, the number of covered items can increase substantially, extending to a wide range of products used in daily life,’ he remarked, highlighting the potential for a much broader scope of bilateral commerce. The meeting was also attended by KCCI President Muhammad Rehan Hanif, senior chamber officials, and Pakistan-Indonesia Business Forum President Shamoon Zaki.
Dr. Ahmad acknowledged the current trade imbalance, where Indonesian exports to Pakistan are considerably higher, but reiterated his government”s commitment to increasing the presence of Pakistani products in Indonesian markets to ensure long-term sustainability.
To foster a more balanced relationship, he underscored the need for enhanced people-to-people contact, reciprocal investment flows, and joint ventures in value-addition industries. ‘It is not only about Pakistan investing in Indonesia; Indonesian investors must also explore opportunities here in Pakistan,’ he added.
KCCI President Rehan Hanif emphasized that the relationship between the two nations is built on deep-rooted cultural and historical ties beyond economic interests. He called for an urgent expansion of bilateral trade, identifying significant potential for collaboration in sectors such as textiles, palm oil, pharmaceuticals, information technology, and tourism.
Hanif encouraged Indonesian businesses to explore investment opportunities in Pakistan’s Special Economic Zones, particularly those under the China-Pakistan Economic Corridor (CPEC), which offer a competitive incentive regime for foreign investors. He affirmed the KCCI”s readiness to facilitate stronger business-to-business linkages.
To institutionalize these efforts, the KCCI President proposed regular exchanges of trade delegations, increased participation in trade fairs, and the organization of sector-specific matchmaking sessions. He also advocated for expanding the existing PTA and systematically addressing tariff and non-tariff barriers to streamline trade.
In a gesture of continued partnership, Hanif extended an invitation for Indonesian companies to participate in the KCCI”s “My Karachi Exhibition” scheduled for February 2026, noting their presence has always enriched the event and fortified commercial bonds.