"Pak-Malaysia FTA - Free Trade Agreement need revision to surmount the trade imbalances between both countries, presently the balance of trade is in favour of Malaysia which requires a narrow-down while increasing the exports to Malaysia," expressed by President, Karachi Chamber of Commerce & Industry, Abdul Majid Haji Muhammad, while addressing to the delegation of Consulate of Malaysia headed by the Consul General, Mohammad Khalid Abdul Razak.

Earlier, President, Karachi Chamber of Commerce & Industry, Abdul Majid welcomed the delegation and expressed compliments, solidarity and high regards to His Excellency the Prime Minister of Malaysia, Najib Tun Razak, the Government and people of Malaysia and aspired for better relationship between the Governments, people and business community of both countries. He apprised the delegation about the vital role of KCCI for promotion of trade & business activities at Pakistan and abroad.

While speaking at the occasion, President Karachi Chamber of Commerce & Industry, Abdul Majid drew the attention of Consul General of Malaysia to contemplate new areas to enhance the bilateral trade. He articulated that Pakistan and Malaysia are enjoying brotherly and friendly relations since last many decades and entered into FTA to cement trade ties. However, he was of the view that presently the Trade Balance is in favour of Malaysia and the Free Trade Agreement between Pakistan & Malaysia, which is the first-ever FTA between two Muslim member countries of OIC, needs immediate revision. He focused that Pakistan exports should be increased, especially the quota of Basmati rice to Malaysia in view of its demand which Malaysia is importing from its neighbouring countries.

Abdul Majid informed that major exports from Pakistan to Malaysia were rice, cotton yarn, fabrics, other textile made-ups, fish and other aquatic invertebrate, articles of leather etc. whereas the major imports from Malaysia to Pakistan were animal and vegetable fats and oils; plastics articles; organic chemicals; rubber articles; chemical products; computers, wood articles, compressor used non CFC gas; cellular mobile phone with battery; etc.

Abdul Majid stressed on the need to address the trade imbalance by diversifying into products other than palm oil. He suggested that one way of doing this would be to increase the volume of exports of non-basmati rice, halal food products and frozen seafood to Malaysia given the sizeable demand and the fact that Malaysia imports such products from number of neighbouring countries.

Abdul Majid highlighted that there is ample goodwill for expansion of trade and establishment of Joint Ventures in various industrial sectors including ship breaking, pharmaceuticals, palm oil refining, food processing, sports goods and construction sectors. Malaysia is also availing the services of large number of Pakistanis highly qualified professionals in the field of engineering, health and medicine, he added.

Abdul Majid said that through FTA, Pakistan has given market access to Malaysia on basic raw materials, intermediate goods and machinery and consequently Malaysia should provide market access to Pakistan for its core import products like rice, fruits & vegetables, seafood, beverages, confectionary, gems & jewellery, cotton yarn, cotton fabric, blankets, bed linen, other home textile products and tents & tarpaulins, medicaments and surgical instruments, etc.

Abdul Majid stressed on the need of frequent exchange of trade delegations, regular exchange of trade information and organizing of single country exhibitions. He informed that Pakistani Tourist visit Malaysia in great number whereas the Malaysian Tourist are not much interested to visit Pakistan so he urged the Consul General to play his part to convince the Malaysian Tourist to visit Pakistan. He, through Consulate of Malaysia, extended invitation to Malaysian companies to participate in the 7th "My-Karachi, Oasis of Harmony Exhibition" to be held in 2010.

On the suggestion of President-KCCI, it was agreed and decided to establish a joint forum of KCCI & Consulate of Malaysia which will make efforts to improve trade imbalance, increase bilateral trade, cultural and tourism activities. Malaysian Consul General also welcomed the suggestion of President-KCCI to take a delegation of prominent businessmen and industrialist to Malaysia to meet and sign MoUs with leading chambers of Malaysia, convene meetings with their counterparts & organize exhibition for which Consul General assured his cooperation and support. It was also agreed that KCCI & Malaysian consulate will organize a Seminar on development of Halal Food Sector. President-KCCI also requested the Consul General for execution of low-cost housing projects in Karachi City.

Senior Vice President-KCCI, Rasheeduddin Rashid seconded the President-KCCI for revision the FTA between Pakistan and Malaysia and voiced to provide a proposal to revise the FTA highlighting the core areas to fill the trade imbalance. He also expressed that Malaysia can take advantage of Gwader Port to establish production base in Pakistan and tap the huge, largely untapped market of South Asia, Central Asia Republics & Middle East.

H.E. Mohammad Khalid Abdul Razak, Consul General of Malaysia in his speech reciprocated gratitude and compliments to Karachi Chamber of Commerce & Industry. He appreciated that Pak-Malaysia friendly relations were deep-rooted and Malaysian High Commission was operating in Pakistan since 1957. He voiced that KCCI being the largest chamber and Karachi being the commercial and industrial hub of Pakistan holds significant status and attraction for Malaysia. He informed that Pak-Malaysia bilateral trade crossed $ 1.88 billion this year. Commenting on the trade imbalance he said that the Pakistan Business Community has to play its effective role to capture their export share to Malaysia and his consulate will extend best cooperation in this regard.

Consul General informed that new High Commissioner of Malaysia in Pakistan, Datto Amad Anwar Adnan, will join his office in Islamabad this month. He said that previously the Trade Commission was operating from Cheni-India however, efforts were underway to establish in Pakistan. He informed that a full-fledged Trade Commission is planned and it will be executed from January 2010 at Karachi. He said that Malaysia ranked among top ten countries maintaining FDI in Pakistan and his country holds 21% shares in MCB Bank. He informed that Governments of Pakistan and Malaysia will be having a session on FTA for its revision shortly. He also sought the input of KCCI for revision of FTA.

Consul General informed that Pakistani exports can initially be enhanced to $ 200 million while exporting rice, agro-based commodities, halal and frozen seafood. He urged Pakistan to increase the export of "Halal Food" products in view of its demand in Malaysia and around the globe. He said that Pakistan is the 5th largest dairy and milk producer and holds 145 million of livestock and suggested Pakistani companies to tap the potential of Halal Food Sector and offered that Malaysia can provide assistance and expertise to constitute "Halal Food Authority" in Pakistan.

Consul General said that Governments of both countries were engaged in several development projects as well. He informed that Malaysian companies were engaged in constructing low-cost housing projects in Punjab and Sindh province and construct over 10,000 low-cost houses. In Karachi City, a Malaysian company is engaged to construct the 47 stories, state-of-art, I.T. Tower for City District Government.

Consul General informed that to attract the attention of Malaysian Tourists to visit Pakistan, discussion is in progress with TAAP to compile tourism packages. He also informed that Malaysian Airlines will also start its flights from Lahore shortly. He also highlighted that Malaysian Universities were offering quality education on low-fee structure and Pakistani students were keenly interested for the same and hundreds of students were already studying in Malaysia.

M. Arif Balgamwala, former Chairman, Diplomatic Affairs Sub-Committee-KCCI also expressed his gratitude to Consul General for extending support and cooperation to the KCCI members for issuance of visa and early response to their trade enquiries. Managing Committee Members of KCCI also participated in the meeting.