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Deepening Pak-Indonesia ties | The Express Tribune

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Deepening Pak-Indonesia ties | The Express Tribune


With supportive tariffs, electronics manufacturing can emerge as major pillar of Indonesia’s investment footprint

President of Indonesia Prabowo Subianto and Prime Minister Shehbaz Sharif Photo: Radio Pakistan


ISLAMABAD:

Pakistan and Indonesia are steadily shaping one of South and Southeast Asia’s most consequential, yet under-reported, economic relationships. What began as a tariff-centred arrangement has matured into a broader commercial partnership driven by commodity flows, rising business-to-business engagement, and an expanding agenda for investment cooperation.

Recent figures underline this momentum. Bilateral trade reached $4.2 billion in 2024, and early 2025 numbers continue to climb. Between January and September 2025, trade volumes touched $2.92 billion, up from $2.69 billion during the same period of last year. This steady rise reflects both the resilience of commodity flows and the gradual expansion of non-traditional product lines entering each other’s markets. Yet the structural imbalance persists – Indonesia remains the dominant exporter, while Pakistan’s outbound shipments largely remain confined to a narrow set of labour-intensive items.

Palm oil remains the anchor of this asymmetry. As one of the world’s largest consumers of imported edible oils, Pakistan depends heavily on Indonesian supply – a reality that shapes pricing, availability, and strategic planning for domestic refiners and food manufacturers. The Indonesian Palm Oil Association reaffirmed in late 2024 and again in 2025 that Indonesia will continue prioritising Pakistan’s edible oil requirements. This stable flow is a valuable assurance for Pakistan, though vulnerability to biodiesel mandates, domestic Indonesian policy shifts, and global price cycles remains.

The policy framework for bilateral trade is robust on paper but under-leveraged in practice. The Indonesia-Pakistan Preferential Trade Agreement (IP-PTA) provides a predictable tariff structure, yet businesses on both sides note that the agreement has not kept pace with evolving supply chain realities. Rules of origin, digital documentation, sanitary and phytosanitary alignment, and services-sector protocols require updating. In short, the scaffolding exists; the operational architecture needs modernisation.

On the export diversification front, opportunities remain substantial but under-exploited. Pakistani exporters identify textiles, home linen, surgical instruments, rice, leather, and processed foods as areas with strong potential in Indonesia’s consumer-driven market. Conversely, Indonesian firms see Pakistan as an attractive destination for electronics, machinery, processed foods, and – significantly – investments in logistics, refining, and distribution infrastructure. Joint ventures in edible oil refining, port-side storage terminals, and downstream food processing plants have been actively discussed at recent business forums.

Business-to-business engagement is deepening faster than government-led initiatives. Delegations from Karachi, Lahore and Islamabad continue to visit Jakarta, Bandung, and Surabaya for sector-specific roundtables and trade fairs. Chambers of commerce on both sides are pushing for SME-focused engagement, with a growing emphasis on using Indonesia as a gateway to Asean and encouraging Indonesian firms to view Pakistan as an entry point to South Asia and Central Asia. This bottom-up momentum is likely to be a major driver of bilateral expansion in the years ahead.

The constraints are equally real. Pakistan’s exporters face high freight costs, fragmented market intelligence, and complex Indonesian non-tariff standards. Indonesian suppliers, meanwhile, must navigate Pakistan’s volatile exchange conditions and inconsistent regulatory signals. Domestic Indonesian policies – particularly biodiesel blending requirements and temporary export curbs – periodically disrupt Pakistan’s edible oil supply chain. For both sides, these frictions complicate long-term planning.

To strengthen and stabilise the partnership, a series of practical measures merit serious consideration. Upgrading the IP-PTA into a broader Free Trade Agreement would be a critical first step, incorporating services, digital trade, clearer investment rules, and mutual recognition of standards. Securing long-term edible oil supply contracts, supported by dedicated storage and port-side infrastructure in Pakistan, would help cushion policy shocks. Joint ventures in refining and downstream processing could add value locally while reducing dollar-based import exposure.

Equally important would be establishing bilateral certification and standards alignment centres to help SMEs meet regulatory requirements more easily. A dedicated Pakistan-Indonesia trade portal could provide real-time tariff data, logistics options, and a digital dispute resolution window – the essential tools for smaller exporters. An investment facilitation desk, jointly staffed by the two governments and linked to export credit agencies, could accelerate approvals and de-risk early-stage projects.

Recent diplomatic and business activity suggests that both sides recognise the importance of moving in this direction. In 2024 and 2025, the Pakistan-Indonesia Business Council and Indonesian diplomatic missions in Karachi engaged in active discussions around agriculture, manufacturing, energy, halal products, and logistics investment. There is also renewed advocacy for finalising a comprehensive trade agreement and introducing direct flights to reduce logistics costs and expand business mobility. These developments signal that investment is becoming a central theme of the bilateral agenda.

A promising new area is Pakistan’s fast-growing electronic appliances market. Demand for air-conditioners, refrigerators, fans, small home appliances, and LED TVs is expanding at a pace that now requires fresh global investment. Indonesian manufacturers – already competitive in mid-range electronics – see Pakistan as an attractive destination due to its large consumer base, improving localisation policies, and lower production costs compared to many Asean peers. Early conversations between Indonesian appliance makers and Pakistani industry groups indicate serious interest in assembling and eventually manufacturing select product lines inside Pakistan.

If realised, Indonesian investment in this sector could have significant spillovers. Local assembly partnerships would reduce import dependence, stabilise prices, and generate jobs across the electrical, metal works, plastic moulding, and logistics value chains. With supportive tariff policies and streamlined approvals, electronics manufacturing could emerge as one of the next major pillars of Indonesia’s investment footprint in Pakistan.

The writer is a Mechanical Engineer



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WTO reform push: India flags dysfunctional dispute system at MC14, seeks review of e-commerce duty moratorium – The Times of India

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WTO reform push: India flags dysfunctional dispute system at MC14, seeks review of e-commerce duty moratorium – The Times of India


India on Thursday urged members of the World Trade Organisation (WTO) to restore a fully functional dispute settlement system, saying the current mechanism has deprived countries of effective redressal, PTI reported.Speaking on the opening day of the WTO’s 14th ministerial conference (MC14) in Yaounde, Cameroon, commerce and industry minister Piyush Goyal stressed the need to revive the automatic and binding nature of dispute resolution within the global trade body.“A dysfunctional Dispute Settlement System has deprived Members from effective redressal. We must restore the automatic and binding dispute settlement system,” he said.The WTO’s dispute settlement mechanism has faced prolonged disruption since 2009 after the US blocked appointments to the Appellate Body.Goyal also called for a reassessment of the moratorium on customs duties on electronic transmissions, which WTO members have periodically extended since 1998. India has repeatedly raised concerns over the potential revenue implications of the arrangement.“In the absence of a common understanding among Members on the scope of the moratorium on customs duties on electronic transmissions and given its potentially significant implications, the continued extension of this moratorium warrants careful reconsideration,” he said.The four-day MC14 is scheduled to conclude on March 29.On broader WTO reforms, Goyal emphasised that any restructuring should be transparent, inclusive and member-driven, with development concerns at the centre. He underlined that core principles such as non-discrimination, consensus-based decision-making and equity must be upheld. The minister added that the principle of special and differential treatment (S&DT) should be made precise, effective and operational.On agriculture negotiations, he said a permanent solution on public stockholding for food security purposes, the special safeguard mechanism and cotton are long-pending mandated issues that member countries “must deliver on them on priority”.“India remains committed to negotiating a comprehensive Fisheries Subsidies Agreement that balances current and future fishing needs, protects the livelihoods of poor fishers, with appropriate and effective S&DT,” Goyal said.He also stated that incorporating plurilateral outcomes into the WTO framework should be based on consensus and should not undermine the rights of non-participants or impose additional obligations on them.“We will engage constructively to show that WTO remains central to global trade and strive to Reform it to remain responsive, Perform in delivering on development, equity, and inclusiveness, and Transform to better serve the interests of the poor, vulnerable, and marginalized people, anchored in consensus and multilateralism,” he said.Other WTO members also highlighted the need for reforms. According to a statement from US Trade Representative Jamieson Greer, the organisation has struggled to address systemic issues such as persistent trade imbalances, structural excess capacity, economic security and supply chain resilience.“As ministers, our focus should be on reforms that would make the WTO more responsive to Members and improve our ability to achieve outcomes that optimize our trading relationships,” Greer said, adding that countries should consider making the e-commerce duty moratorium permanent.Separately, a ministerial statement by the G-33 grouping of developing countries reiterated that public stockholding for food security remains a crucial policy tool for developing and least developed nations.“We urge all WTO Members to work together in reaching a permanent solution on this issue as per the Ministerial mandates,” the statement said.China also called for restoring a fully functioning dispute settlement mechanism at the earliest to strengthen the WTO’s role in global economic governance. The UK said it wanted to “improve accountability by reinstating a functioning dispute settlement system”.EU trade commissioner Maros Sefcovic warned that inaction could weaken the rules-based trading system. “Maintaining the status quo is not an option — we cannot go on as we are. If we do, we risk erosion of the rules-based system and the WTO sliding into irrelevance. Therefore, I strongly believe we must act urgently to reform the WTO,” he said



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Gulf crisis: British Airways and SWISS add India flights – The Times of India

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Gulf crisis: British Airways and SWISS add India flights – The Times of India


NEW DELHI: With the big Gulf carriers operating a fraction of their schedules, foreign airlines are expanding their India flights to meet the increased demand for options to the likes of Emirates, Qatar Airways and Etihad. SWISS will operate a second daily light between between Delhi and Zurich from April 1 to May 31, 2026. British Airways will have a third daily service from Delhi starting April 7, followed by a third daily service from Mumbai from May 15. Air India has been adding flights to the west whenever possible during the Iran war.In a statement Thursday, Lufthansa group carrier SWISS said it is increasing its flight offering between Switzerland and India. “From April 1 to May 31, 2026, in addition to its regular service from Zurich to Delhi, SWISS will operate a second daily connection using an Airbus A330. Numerous passengers of other airlines are currently unable to take their originally booked flights via the Gulf region. As a result, many are switching to direct connections to and from Asia. SWISS is seeing a corresponding rise in demand for such nonstop services. We are pleased to offer our customers this additional flight to Delhi over the next two months. The flights are available for booking with immediate effect,” SWISS said in a statement.“Depending on further developments in the Middle East, SWISS continuously assesses how aircraft and capacities that become available can be deployed where demand is particularly strong. In addition to demand, key factors include operational constraints such as available airport slots, traffic rights and fleet deployment capabilities,” SWISS statement added.British Airways also announced additional flights from Delhi and Mumbai “to meet strong travel demand”. “In response to the ongoing situation in the Middle East, the airline is adding short-term capacity from Delhi and Mumbai to meet customer demand. A third daily service from Delhi will launch on April 7, followed by a third daily service from Mumbai from May 15. With this additional capacity, British Airways will operate up to 63 weekly flights with more than 1,000 additional seats per week between India and the UK, offering more options for customers travelling to the UK or connecting onwards across the airline’s global network,” BA said in a statement.Neil Chernoff, British Airways’ chief planning and strategy officer, said: “As we continue to respond to the evolving situation in the Middle East, we’ve been able to reallocate additional capacity to meet strong demand to other destinations across our route network. India remains one of our most important global markets, and these additional services from Delhi and Mumbai respond to customer demand and provide greater choice and flexibility for our customers when travelling to the UK and beyond. We will continue to review our network and make adjustments based on where our customers want to fly this summer.”



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Major outgoing CEOs are citing AI as a factor in their decisions to step down

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Major outgoing CEOs are citing AI as a factor in their decisions to step down


Two major CEOs told CNBC in recent months that the rise of artificial intelligence contributed to their decisions to hand over the reins and step down from their positions.

It’s one of the latest insights into how America’s corporate leaders are sizing up the AI transition.

Coca-Cola CEO James Quincey told CNBC’s “Squawk Box” on Thursday that his decision to step down from his role was influenced by larger “waves of the organizational momentum.”

“My job is also to think who’s the best team to put on the field to get the next wave done,” Quincey said. “And I concluded that, actually, it was time to put someone else on the field for the next wave of growth.”

Quincey, who has served as CEO of the beverage giant since 2017, will be succeeded by current COO Henrique Braun, effective at the end of this month.

“In a pre-AI, a pre-gen-AI mode, we made a lot of progress. But now there’s a huge new shift coming along,” Quincey said.

While he said he’s leaning into the technological advances, he believes the beverage company needs “someone with the energy to pursue a completely new transformation of the enterprise.”

That person, Quincey said, is Braun, who he believes will uniquely equip the company to embrace its next chapter.

Quincey’s comments echo sentiments from former Walmart CEO Douglas McMillon in December ahead of his departure from that role.

Walmart CEO Doug McMillon on tenure: You can't get growth without change

McMillon, who had held the position as CEO of the global retailer since 2014, told CNBC’s “Squawk Box” at the time that he had decided to hand over the role to someone “faster.” John Furner, who was previously head of Walmart U.S., took over the top job on Feb. 1.

“With what’s happening with AI, I could start this next big set of transformations with AI, but I couldn’t finish,” McMillon told CNBC.

“About a year ago, I really started feeling like this next run, you could see what agentic commerce was gonna look like, the vision for AI shopping, and I started thinking about everything that needs to happen over the next few years, and it really caused me to think that now was the right time [to step down],” he said.

Walmart in December made the move to list on the Nasdaq, something McMillon said was symbolic of the progress the company has made with technology.

The retailer has been incorporating AI to optimize its supply chain, provide assistants for customers and more.

“I think what you’re going to see from the Walmart team is they’re just going to keep scaling what we’ve already started, build some new stuff on top, and then use AI to transform it all,” he said.

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.



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