Malaysia-Pakistan
Signed Early Harvest Programme 

Malaysia and Pakistan signed the agreement on the Early Harvest Programme (EHP) on 1 October 2005, ahead of the conclusion of its Free Trade Agreement (FTA) which is scheduled by mid-2006.

The EHP is based on the 2004 import statistics and the Most Favoured Nation (MFN) applied tariff rates of Jan 1, 2005 of both countries.

It covers products with MFN tariffs of 10% and below and upon implementation, products with MFN tariffs of five percent will be eliminated and 10% will be accorded a margin of preferences of 50%.

The EHP shall expire upon entry into force of the FTA or March 31, 2007, whichever is earlier.

Pakistan's EHP offer to Malaysia covers 5.49% of import value (RM146.3 million) involving 125 tariff lines. The products include machinery, mechanical equipment and appliances, plastic products, chemical products, rubber, rubber products and timber products.

Meanwhile, Malaysia's will waive or reduce duties on 114 Pakistani items covering import value of RM22.7 million or 10.97% of its total import from Pakistan. The products are textile, clothing, agricultural products and jewellery.

MITI said the Interim Rules of Origin (ROO) would be applied to the products covered under the EHP. A 40% local content rule will be applied on the EHP products while product specific rules will be applied to textile, clothing and jewellery. The EHP ROO will be replaced by a new set of rules under the FTA.

In 2004, total trade between Malaysia and Pakistan amounted to RM2.871 billion, heavily in favor of Malaysia. Malaysia's export to Pakistan was valued at RM2.665 billion while imports from Pakistan amounted to RM206 million. 

Malaysia's major exports to Pakistan are palm oil, margarine and telecommunication equipment. Pakistan's main exports to Malaysia are fresh, chilled and frozen fish, rice, textile yarn, fabrics and woven cotton fabrics.

Back to Index of September 2005