Islamabad (TDI): More than 10 Memorandums of Understanding (MoUs) and deals are likely to be signed between Pakistan and Indonesia soon.
Both sides will also engage in discussions to make progress on a free trade agreement (FTA) to further strengthen economic relations, The Express Tribune reported on Thursday.
Pakistan is likely to export processed food, pharmaceuticals, IT services and halal meat while consumer electronics, auto parts and processed palm-based products are expected to be imported from Indonesia.
In 2023, Pakistan exported goods worth about $328.16 million to Indonesia.
Indonesia’s exports to Pakistan were valued at nearly $3.03 billion.
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Indonesia produces about half of the world’s refined nickel and two-thirds of the mined nickel; therefore, it wants to achieve a more prominent place in the international electric vehicle (EV) supply chain.
The Southeast Asian country is striving hard to capture and discover new markets in Asia and Central Asia, particularly for lithium batteries and EVs.
Heavy reliance of Indonesia on nickel for batteries because of its vast nickel reserves gives it a comparative advantage in terms of consumer affordability, durability, better thermal stability and higher energy density.
Thus, a joint venture for lithium batteries would be a value addition for both nations.
Moreover, Indonesia’s EV economy is rapidly developing, which has healthy and bright prospects, qualifying it to become an international leader in EV production.
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Indonesian President Prabowo Subianto was scheduled to visit to Pakistan from January 26 to 28, but the trip has been delayed and will be rescheduled soon.
It is expected that collaboration in education, health care, information technology, tourism, energy and food, and military relations will be discussed and finalised during the expected visit.
