Trade with Malaysia below expectations; opportunities exist for exports of non-traditional products,
KATI President Muhammad Ikram Rajput
KARACHI: Malaysian Consul General Herman Hardynata Ahmad has said that bilateral trade between Pakistan and Malaysia is witnessing steady growth, while discussions at the government level are underway to further expand the range of Pakistani products exported to Malaysia in order to balance trade between the two countries.
Speaking during his visit to the Korangi Association of Trade and Industry (KATI), the Consul General said that following the recent visit of the Malaysian Prime Minister, negotiations are ongoing to enhance bilateral economic cooperation. He noted that, in addition to palm oil, Pakistan has strong potential to increase exports of meat, halal food products, pharmaceuticals, and IT services to Malaysia.
The event was attended by KATI President Muhammad Ikram Rajput, Senior Vice President Zahid Hamid, former President Junaid Naqi, Shahid Qureshi, Malaysian Consulate Marketing Officer Nadir Ali, along with KATI members and other industrialists.
KATI President Muhammad Ikram Rajput presents a shield to Malaysian Consul General
Herman Hardynata Ahmad, while Senior Vice President Zahid Hamid, Shahid Qureshi, Muslim
Muhammadi, Wajid Hussain, Umerson and Salman Sabri are also present.
Consul General Herman Hardynata Ahmad added that Malaysia introduced Islamic banking in 1960, and
since then Islamic financing, Shariah compliance, and halal certification have become mandatory across
all sectors. “All trade in Malaysia is conducted in accordance with Islamic principles, which further strengthens the brotherly relations between Malaysia and Pakistan,” he said.
The Consul General further highlighted that Malaysia has a 5,400-kilometre-long coastline, but due to government restrictions on deep-sea fishing, the country imports fish. He noted that fish imports have
increased significantly in recent years. He also stated that 10 percent of Pakistan’s palm oil requirement
is currently met through imports from Malaysia.
KATI President Muhammad Ikram Rajput, while addressing the gathering, said that the Pakistan–Malaysia Free Trade Agreement (FTA) was signed in 2007, under which tariff concessions were granted on more than 10,000 products. However, he pointed out that Pakistan still has vast opportunities to expand exports of non-traditional products beyond conventional items.
He said that after Malaysian Prime Minister Dato’ Seri Anwar Ibrahim’s visit to Pakistan in October 2024, bilateral trade witnessed a notable increase. Several trade agreements were signed, leading to higher exports of rice, textiles, fruits, and surgical goods from Pakistan. Despite this progress, he added that the overall trade volume remains below its true potential.
KATI Senior Vice President Zahid Hamid emphasized that reducing tariffs, removing non-tariff barriers, and simplifying customs procedures could significantly boost bilateral trade. He highlighted the immense scope for cooperation in the halal food industry, noting Malaysia’s global leadership in halal certification and Pakistan’s strong agricultural and livestock base.
He also pointed out that Malaysia has a strong industrial base in electronics, auto parts, and machinery, while Pakistan excels in textiles, leather goods, and sports equipment. Establishing joint ventures and industrial zones, he said, could substantially increase exports. Zahid Hamid further stressed that easing visa policies, increasing direct flights, and promoting tourism and educational exchanges would help bring the two nations closer.
Speaking on the occasion, Shahid Qureshi said that bilateral trade between Pakistan and Malaysia has reached USD 1.8 billion, with Pakistan’s share standing at USD 600 million, underscoring the need to improve trade balance. He welcomed the decision to begin exports of halal meat from Pakistan to Malaysia, calling it a positive development.
Former KATI President Junaid Naqi, along with Ahsan Farooqi, Muslim Muhammadi, and other industrialists, also addressed the gathering.
