Pakistan eyes enhanced trade with Indonesia ahead of its president’s visit 

Indonesian President Prabowo Subianto reads out vows, taken by newly appointed ministers during an inauguration at the Presidential palace in Jakarta on October 21, 2024. (REUTERS/File)
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Updated 09 January 2025
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Pakistan eyes enhanced trade with Indonesia ahead of its president’s visit 

  • Indonesia’s president is expected to visit Pakistan later in January to discuss trade, bilateral issues
  • Planning minister calls for cooperation with Indonesia in education, health, information and tourism

ISLAMABAD: Pakistan’s Planning Minister Ahsan Iqbal has directed officials to devise a strategy to boost bilateral trade with Indonesia, state-run media reported on Thursday, as Islamabad gears up to welcome President Prabowo Subianto to the country later this month. 
Pakistan and Indonesia have attempted to bolster their economic ties through trade and investment over the years. The two countries signed a Preferential Trade Agreement in 2012 that became operational in September 2013, allowing for concessional market access to 232 goods from Pakistan such as fresh fruits, cotton and fabrics, and 313 from Indonesia, such as edible palm oil products, sugar confectionaries and cocoa products.
Earlier this week, Prime Minister Shehbaz Sharif confirmed that Subianto will be in Pakistan later this month an official visit to the country.
“The minister directed the relevant authorities to formulate concrete proposals to enhance trade relations, emphasizing the need to strategically target the Indonesian market to showcase Pakistani products effectively,” the state-run Associated Press of Pakistan (APP) said. 
Iqbal was speaking to officials while he chaired a meeting of a committee constituted by Sharif to enhance bilateral cooperation and trade between both countries ahead of Subianto’s visit. 
“This landmark visit will open new avenues for trade and cooperation, further strengthening bilateral relations between Pakistan and Indonesia,” APP quoted Iqbal as saying. 
“Indonesia has successfully integrated its cultural diversity into a unified identity. We can learn from their model.”
Iqbal stressed collaboration with Indonesia in the education, health, information technology and tourism sectors. He also suggested providing scholarships in IT and health care sectors to students from both countries.
In October last year, Pakistan and Indonesia signed bilateral trade pacts and memorandums of understanding worth $10.7 million during an Indonesian trade expo.
According to the Pakistan Business Council, the trade relationship between Pakistan and Indonesia holds significant potential for growth, with opportunities for increased cooperation in areas like agriculture, textiles, and energy.


Pakistan accuses India of manipulating Indus waters, warns of risks to regional peace

Updated 58 min 57 sec ago
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Pakistan accuses India of manipulating Indus waters, warns of risks to regional peace

  • India announced in April it was putting the Indus Waters Treaty in abeyance over a gun attack in disputed Kashmir it blamed on Pakistan
  • Islamabad says it has witnessed ‘unusual, abrupt variations’ in the flow of Chenab river, accusing New Delhi of ‘material breaches’ of treaty

ISLAMABAD: Pakistan on Friday accused India of manipulating flows of Indus waters in violation of a 1960 water-sharing treaty, warning that unilateral actions over the transboundary waters could heighten tensions and pose risks to regional peace.

The Indus Waters Treaty (IWT), mediated by the World Bank, divides control of the Indus basin rivers between the two nuclear-armed neighbors. India said in April it was holding the treaty “in abeyance” after a gun attack in Indian-administered Kashmir killed more than 26 tourists. New Delhi blamed the assault on Pakistan, Islamabad denied it.

The treaty grants Pakistan rights to the Indus basin’s western rivers — Indus, Jhelum, and Chenab — for irrigation, drinking, and non-consumptive uses like hydropower, while India controls the eastern rivers — Ravi, Beas, and Sutlej — for unrestricted use but must not significantly alter their flow. India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes, according to the agreement.

Speaking to foreign envoys in Islamabad, Pakistani Deputy Prime Minister Ishaq Dar accused New Delhi of “material breaches” of the IWT that may have consequences for regional stability, citing “unusual, abrupt variations” in the flow of Chenab river from April 30 to May 21 and from Dec. 7 to Dec. 15.

“These variations in water flows are of extreme concern for Pakistan as they point to unilateral release of water by India into River Chenab. India has released this water without any prior notification or any data- or information-sharing with Pakistan as required under the treaty,” he said.

“India’s most recent action clearly exemplifies the weaponization of water to which Pakistan has been consistently drawing attention of the international community.”

There was no immediate response from New Delhi to the statement.

Dar said this water “manipulation” occurs at a critical time in Pakistan’s agricultural cycle and directly threatens the lives and livelihoods as well as food and economic security of its citizens.

He shared that Indian actions prompted Indus Water Commissioner Mehar Ali Shah to write a letter to his Indian counterpart, seeking clarification on the matter as provided under the Indus Waters Treaty.

“We expect India to respond to the queries raised by Pakistan’s Indus water commissioner, refrain from any unilateral manipulation of river flows, and fulfill all its obligations in letter and spirit under the Indus Waters Treaty provisions,” the Pakistani deputy premier said.

Dar also accused India of consistently trying to undermine the IWT by building various dams, including Kishenganga and Ratle hydropower projects, which he said sets “a very dangerous precedent.”

“Alarmingly, India is now subverting the treaty’s own dispute resolution mechanism by refusing to participate in the Court of Arbitration and neutral expert proceedings. India is pursuing a deliberate strategy to sabotage the well-established arbitration process under the treaty provisions,” he said.

The South Asian neighbors have been arguing over hydroelectric projects on the shared Indus river system for decades, with Pakistan complaining that India’s planned hydropower dams will cut its flows.

In August, the International Court of Arbitration rendered an award on issues of general interpretation of the IWT, explaining the designed criteria for the new run-of-river hydropower projects to be constructed by India on the western rivers of Chenab, Jhelum and Indus, which Islamabad said vindicated its stance.

In its findings, the Court of Arbitration declared that India shall “let flow” the waters of the western rivers for Pakistan’s unrestricted use. In that connection, the specified exceptions for generation of hydro-electric plants must conform strictly to the requirements laid down in the Treaty, rather than to what India might consider an “ideal” or “best practices approach,” according to the Pakistani foreign office.

“Pakistan would like to reiterate that Indus Waters Treaty is a binding legal instrument that has made an invaluable contribution to peace and stability of South Asia,” Dar said.

“Its violation, on the one hand, threatens the inviolability of international treaties and on the other, it poses serious risks to regional peace and security, principles of good neighborhood, and norms that govern inter-state relations.”