Pakistan, Malaysia agree to renegotiate bilateral FTA in near future

ISLAMABAD: High Commissioner of Malaysia Dato’ Mohammad Azhar Mazlan said on Friday that Malaysia and Pakistan have agreed to renegotiate the bilateral Free Trade Agreement (FTA)  and the renegotiation process will start soon.

The high commissioner said that from Pakistan’s side, Minister for Commerce Jam Kamal Khan will shortly participate in the dialogue process in this regard to renegotiate the bilateral FTA and there will be a also discussion between the two countries on other economic and trade issues.

He said this while addressing the high commission of Malaysia, Islamabad hosted an engagement attended by more than 50 prominent Pakistani industry leaders and stakeholders.

The event was organized as a follow-up to the recent official visit of the Prime Minister of Malaysia, Anwar Ibrahim to Pakistan in October 2024, with a particular focus on enhancing trade, investment, and business collaborations between the two countries.

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The Free Trade Agreement (FTA) for Closer Economic and trade ties between Pakistan and Malaysia was signed on November 08, 2007 at Kuala Lumpur Malaysia and this Agreement is the 1st bilateral FTA between two brotherly Countries and members of OIC.

This agreement is Pakistan’s first comprehensive FTA incorporating trade in goods, trade in services, investment and Economic cooperation and Malaysia’s first bilateral FTA with any South Asian country.

In his remarks, Ambassador Dato’ Mohammad Azhar Mazlan affirmed the High Commission’s commitment to fostering a conducive environment for business partnerships and highlighted the importance of leveraging the outcomes of Malaysia’s Prime Minister visit to boost economic cooperation.

The Ambassador shared that the official visit of the Malaysian Prime Minister was very fruitful, resulting in two government-to-government and four business-to-business MOUs.

Additionally, Malaysia plans to import $100 million worth of halal meat and 100,000 tonnes of Basmati rice from Pakistan.

The High Commissioner also highlighted the recent opening of a MATRADE office in Karachi to further facilitate business engagement between both sides, and encouraged Pakistani business leaders to consider Malaysia as a gateway to the ASEAN region, which has a market of 680 million people.

During the ceremony, attendees provided valuable feedback on the current landscape of trade and investment between Malaysia and Pakistan, emphasizing the need for continued dialogue and collaboration to unlock potential for mutual benefits.

In the regional context, the Malaysian high commissioner highlighted the opportunities presented by ASEAN (Association of Southeast Asian Nations), particularly Malaysia’s geo-economic role as a gateway to the ASEAN market.

He said that there is immense potential for Pakistan to expand its economic engagement in the region, especially as Malaysia is set to assume the ASEAN chairmanship in 2025.

The bilateral engagements provided a platform for industry leaders to discuss key issues, share insights, and explore opportunities in trade and investment, he said.

He said the discussions centred on the potential to strengthen bilateral economic ties and address challenges that may hinder collaboration.

In closing, Ambassador Dato’ Azhar thanked all attendees for their ongoing support in strengthening trade ties between Malaysia and Pakistan.

The engagement underscored the shared commitment of both nations to foster and solidify cooperation in trade and investment to a higher level.