Malaysia-Pakistan Closer Economic Partnership Agreement (Mpcepa)- December 12, 2020
The MPCEPA is a comprehensive agreement that also includes the liberalisation of trade in services. Pakistan has offered a maximum foreign participation of 60% in all sectors, and the number of Malaysians employed per organization does not exist. The sectors of interest to Malaysia are professional services, construction services and related engineering services, educational services and telecommunications services. Pakistan`s national security adviser, Sartaj Aziz, said the partnership agreement had opened up prospects since then, but the agreement has been suspended for the past two years over security issues in Pakistan. He said the country would be firm in improving its connectivity in Central Asia, which led to the signing of a comprehensive agreement for the Sino-Pakistan economic corridor worth $46 billion in new investments. “Now that the security situation has improved, I have proposed to the Joint Economic Commission to meet this year or early next year so that all previously signed declarations of intent can be implemented,” he said. This agreement is a timely initiative of the Pakistani government to secure the market for its export products in Malaysia and to deepen economic and trade relations with an important member of the region. The agreement also includes a chapter on investments to facilitate entrepreneurs from both countries. The incentives available to both countries will not be made available to investors from other countries and the bilateral investment agreement signed by Pakistan will have no impact on the investment provisions under the free trade agreement. How does your product benefit from preferential tariffs? The agreement is the first bilateral free trade agreement between two Muslim countries – members of the OIC. The agreement is Pakistan`s first comprehensive free trade agreement, which includes trade in goods, trade in services, investment and economic cooperation, as well as Malaysia`s first bilateral free trade agreement with a South Asian country. Sartaj said there were huge opportunities for Malaysia and Pakistan in sectors such as energy, agriculture, halal products, electricity and electronics, motor vehicles and science and technology. Total imports decreased by 20.1% to 711.9 million.RM ($172.1 million), compared to $891.3 million.RM ($230.0 million) in 2015.