Pakistan, Malaysia move towards free trade

Malaysia and Pakistan agreed on Oct 26 to take the first step towards a free-trade pact and look at cutting import duties on some of each other's exports.

Foreign ministers from the two Muslim Asian nations said after a meeting in the Malaysian capital that officials from both sides would start work soon on a preferential trade agreement.

"We have agreed to invite a delegation to Pakistan to come and look at a preferential trade arrangement, leading to a free trade agreement," Pakistani Foreign Minister Khursheed Mehmood Kasuri told a joint news conference.

Trade between the two countries totalled around US$700 million (RM2.66 billion) last year, with Malaysian exports — mostly palm oil — accounting for almost 90% of that.

Pakistan is keen to boost exports of rice and textiles to Malaysia, said Abid Javed Akbar, vice-chairman of Pakistan's Export Promotion Bureau, who was accompanying Kasuri.

Pakistan also wants more Malaysian investment in new palm oil refineries in Pakistan, the Pakistani officials said…