Bilateral trade between Indonesia and Pakistan has surged to US$4.2 billion, yet both nations acknowledge that vast economic potential remains unrealized, prompting calls for diversification into high-value sectors and deeper collaboration.
According to a report today, during a meeting at the Karachi Chamber of Commerce and Industry (KCCI), Indonesian Consul General Drs. Mudzakir M.A revealed that trade reached the new high in 2024. He supported this with data showing commerce from January to September 2025 stood at US$2.92 billion, a notable increase from US$2.69 billion during the corresponding period in the previous year.
Despite the positive performance, both the Consul General and KCCI President Muhammad Rehan Hanif stressed that current volumes do not reflect the true capacity of the two economies. They pointed to significant opportunities for expansion in sectors such as textiles, the Halal industry, pharmaceuticals, technology, and agriculture.
Rehan Hanif, speaking on behalf of the KCCI, emphasized that the true potential is “significantly higher” than realized volumes. He identified Pakistan”s export-oriented pharmaceutical industry, its rapidly evolving IT sector, and tourism based on shared heritage as key areas for joint ventures and technology transfer initiatives with Indonesia.
The KCCI President extended an invitation to Indonesian investors to explore opportunities within Pakistan’s Special Economic Zones, particularly under the CPEC framework, which offers competitive incentives for foreign investment.
To translate potential into progress, Hanif proposed several practical measures, including the regular exchange of business delegations, joint participation in trade fairs, organizing single-country exhibitions, and holding sector-specific business matchmaking sessions. He also called for strengthening direct shipping links to reduce costs and expanding the existing Preferential Trade Agreement (PTA) while addressing trade barriers.
The Consul General affirmed Indonesia”s commitment to advancing economic cooperation, stating the objective is to move beyond mere volume and into “high value-added and technology-driven sectors.” He highlighted potential collaboration in Halal product development, palm oil, renewable energy, and SME growth.
As a concrete step, Drs. Mudzakir announced that an Indonesian business delegation will participate in the International Consumer Product Fair at Expo Center Karachi from December 11th to 14th, 2025. He requested the KCCI to facilitate B2B meetings between its members and the visiting Indonesian companies.
Both officials reaffirmed the strong relationship between the two countries, which they described as founded on shared faith, historical links, and mutual aspirations. The Consul General described Pakistan as one of Indonesia”s strategic partners in South Asia, while the KCCI President regarded Indonesia as a “key trading partner within the ASEAN bloc.”