Pakistan, Malaysia to expand trade ties

By DASHVEENJIT KAUR / Pic By BERNAMA

The official visit by Pakistan’s Prime Minister (PM) Imran Khan to Malaysia signals a fresh momentum in bilateral relations.

Malaysia and Pakistan deepened ties yesterday with new agreements signed, while a slew of existing ones were reaffirmed.

Prime Minister Tun Dr Mahathir Mohamad acknowledged that both Malaysia and Pakistan have new governments in office.

“We inherited similar problems in many areas from the past administrations, we both share a similar vision in eradicating corruption and addressing economic issues to develop our countries and redeem our wealth,” Dr Mahathir said in his welcoming address at the luncheon hosted for the Pakistani delegates in Putrajaya yesterday.

“Now is the time to move together and I believe in the importance of cooperation based on mutual respect, and a successful and dynamic relation between Malaysia and Pakistan would contribute to our own prosperity and stability,” he added.

Imran Khan expressed his intention to learn from Malaysia in various fields, especially on economic development and Malaysia’s earnest efforts in eliminating corruption.

The Pakistan PM arrived in Malaysia yesterday for a two-day maiden visit at the invitation of Dr Mahathir.

Malaysia and Pakistan enjoy substantive and long-standing bilateral relations in the fields of education, tourism, defence cooperation and technical assistance.

Dr Mahathir professed that Malaysia considers Pakistan a close partner in the South Asian region.

“I am happy to see the continuous friendly relations that Malaysia and Pakistan have had since the establishment of diplomatic relations in 1957,” he noted.

Dr Mahathir and Imran Khan welcomed the establishment of a bilateral consultation between senior officials of Ministry of Foreign Affairs of both nations as a mechanism to intensify engagement. In this regard, Malaysia and Pakistan will convene the first bilateral consultation in Islamabad next year.

Both leaders witnessed the signing of an agreement on the partial abolition of visa for diplomatic and official passport holders.

Malaysia and Pakistan also acknowledged the importance of the tourism industry and youth exchanges in promoting greater people-to-people contact and a sustainable socioeconomic growth, as well as in fostering mutual understanding between the two countries.

Both sides reaffirmed the memorandum of understanding on the recruitment of Pakistan workers signed in Islamabad, Pakistan, on Oct 20, 2003.

Dr Mahathir also reiterated the role of Malaysian investments in Pakistan in sectors like telecommunications, energy, construction and banking.

“I would like to acknowledge the opportunities and confidence given by Your Excellency (Imran Khan) to a number of Malaysian companies currently involved in various projects in Pakistan.

“I hope more Malaysian companies will be given the opportunity to be more involved in Pakistan’s economy,” he said.

Recognising the success of Penang as a high-tech industry hub, Pakistan highlighted an intention to explore a greater collaboration between the high-tech industries of both countries.

Malaysia invited Pakistani companies to invest in Malaysia in both the manufacturing and services sectors, and leverage on Malaysia’s strategic location to expand into Asean and the Asia-Pacific region.

Pakistan also invited potential Malaysian companies to explore the possibility of investing in special economic zones to take advantage of Pakistan’s strategic location at the crossroads of Central, South and West Asia.

According to a joint statement following the delegation meeting, Malaysia’s sole electric provider company, Tenaga Nasional Bhd, is open to business opportunities in Pakistan, including in renewable energy.

On the inter-governmental agreement on liquefied natural gas (LNG) between Malaysia and Pakistan signed in November 2017, Dr Mahathir reiterated Malaysia’s commitment to assist Pakistan in addressing its energy shortfall.

In this regard, Imran Khan welcomed Malaysia’s cooperation in LNG and other energy sectors, including hydroelectric and renewable resources.

Malaysia and Pakistan had also discussed matters related to defence and agreed to deepen security cooperation.

The meeting touched on the need to enhance educational ties as both leaders agreed that a close cooperation on education and training is crucial in the next phase of the relationship.

Imran Khan also extended an invite to Dr Mahathir to visit Pakistan in March next year in conjunction with Pakistan Day.

In 2017, the total bilateral trade between the two countries stood at RM5.76 billion, an increase of 3.5% compared to 2016. Pakistan is Malaysia’s third-largest South Asian trading partner.