Free Trade Agreement (FTA) negotiations are undergoing between Pakistan and Malaysia to further reduce duties on tariff lines in order to give better attractions to businessmen of both countries.
Both the countries inked the Comprehensive Free Trade Agreement (FTA) for Closer Economic Partnership back in 2007.This Agreement was Pakistan's first comprehensive FTA incorporating trade in goods, trade in services, investment and Economic Co-operation and Malaysia's first bilateral FTA with any south Asian country.
According to the agreement, for trade in Goods Pakistan was supposed to eliminate tariff on 43.2% of the current imports from Malaysia by 2012, while Malaysia had to eliminate tariff on 78% of imports from Pakistan.
Sources said that both the countries recently organized a business seminar in Malaysia wherein ways for promoting trade and investment between the two counties were discussed thoroughly.
The FTA between both the countries provide numerous opportunities for the companies to promote trade and investment.
Current trading basket by both countries is limited to Palm oil, fibre board, rubber electrical and electronic equipment from Malaysia.
While from Pakistan main items being exported are rice, maize, cotton, textile, vegetables. Diversification of products was the key to boost trade between the two countries.