Pakistan and Indonesia on Tuesday agreed to further strengthen institutional ties, including the early convening of Joint Trade and Development Committee meetings and trade forums.
According to sources, this understanding was reached during a meeting between Federal Minister for Commerce Jam Kamal Khan and Indonesian Ambassador to Pakistan Chandra Warsinanto Sukotjo. During the meeting, the Federal Minister briefed the ambassador on Pakistan’s emerging trade strategy, with particular focus on rice exports. He said the government is actively working on financial and trade mechanisms that can improve competitiveness without compromising quality, aiming not only to maintain but also to expand Pakistan’s market share.
The Federal Minister noted that Pakistan is among the world’s major rice exporters and provides internationally recognized quality. However, he also acknowledged that intense global price competition, especially due to recent interventions by major producing countries, is creating challenges for exporters.
Both sides reaffirmed that the memorandum of understanding (MoU) on rice trade, signed in 2015, had expired in 2019, under which the governments could purchase up to 1 million metric tons of rice annually through government-to-government (G2G) arrangements. The Federal Minister stated that Pakistan has already shared a revised draft with Indonesia and hopes it will soon be finalized, giving long-term cooperation in this staple commodity a formal institutional framework.
During the meeting, the Commerce Minister also raised issues facing Pakistani agricultural exports, particularly mangoes. He highlighted that Pakistan is awaiting the issuance of import quotas from Indonesia to ensure smooth, seasonally aligned exports. He warned that delays could result in significant losses for farmers and exporters.
The communiqué also noted concerns over the recent increase in testing requirements for Pakistani mangoes, which have risen from 8 to 24. This increase raises export costs and processing time. Sources said that the Department of Plant Protection is already coordinating with its Indonesian counterparts to resolve the matter.
The Indonesian ambassador welcomed Pakistan’s proposals and appreciated the positive developments resulting from recent high-level interactions between the two countries. He assured that the issues raised, particularly in the rice sector, market access, and trade facilitation, will be taken up for consideration in Jakarta, Indonesia’s capital. He also highlighted Indonesia’s strong interest in food security, diversification of import sources, and competitive pricing.
Both sides agreed to accelerate institutional linkages, including holding Joint Trade and Development Committee meetings and trade forums soon, as well as maintaining continuity through online (virtual) consultations. Sources added that both countries reaffirmed their commitment to transforming their long-standing friendly relations into tangible economic outcomes through structured negotiations, timely decisions, and private sector participation.
