ISLAMABAD: On Monday, Pakistan and Malaysia revealed a fresh $200 million halal meat trade quota and committed to enhancing collaboration in the digital economy, agriculture, and education to strengthen economic and strategic relations between the two Islamic countries.
The declaration was made during Pakistani Prime Minister Shehbaz Sharif’s three-day trip to Malaysia, where he engaged in extensive discussions with Malaysian Prime Minister Anwar Ibrahim.
During a joint press conference with Sharif, Ibrahim stated that Kuala Lumpur had already raised rice imports from Pakistan and was now ready to assist in beef and meat imports under a new halal trade framework.
Anwar mentioned that the decision came after talks with Sharif, who suggested increasing agricultural exports to Malaysia, which could include meat worth up to $200 million. He mentioned that both governments had concurred to investigate fresh opportunities for cooperation in science, technology, engineering, mathematics (STEM), innovation, digital industries, and semiconductors, highlighting Pakistan’s impressive early achievements in these fields among Muslim countries and Malaysia’s willingness to capitalize on that potential.
“This limit on exporting meat to Malaysia will be governed by market pricing mechanisms and all halal certifications mandated by Malaysian officials,” Sharif reassured Ibrahim during the joint press conference in Putrajaya.
“We will exert all possible efforts to fulfill your conditions so that this collaboration grows further in the coming years.”
Ibrahim stated that Malaysia appreciated Pakistan’s expanding role in halal production and would support higher imports of beef and meat products.
“There is a desire to export beef products to Malaysia.” “Of course, we will make this happen,” he stated.
In addition to agricultural trade, the leaders also talked about enhancing collaborations in AI, digital innovation, and vocational and technical training, with Sharif urging for joint ventures that merge Malaysian expertise with Pakistani talent.
Both parties also reiterated their commitments under the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA), which offers preferential access for services and goods.
Regarding global and regional matters, Ibrahim commended Pakistan’s position on counterterrorism and its advocacy for peace in South Asia, as both leaders endorsed the ceasefire and humanitarian access initiatives led by US President Donald Trump in Gaza.
Cultural diplomacy was also highlighted during the visit, as Sharif inaugurated the Urdu translation of Ibrahim’s book “SCRIPT,” describing it as a connection between Islamabad and Kuala Lumpur.
During his inaugural official visit to Malaysia as prime minister, Sharif stated that Pakistan intends to gain insights from Malaysia’s progress in technology, skill development, and economic management.
According to official data from both governments, bilateral trade between Pakistan and Malaysia is currently approximately $1.4 billion each year. In 2024, Pakistan sent goods worth around $515 million to Malaysia, whereas imports from Malaysia amounted to nearly $960 million, resulting in a trade deficit of about $445 million for Islamabad, as reported by the State Bank of Pakistan and Malaysian external trade data.
Malaysia exports predominantly palm oil and other vegetable oils, along with machinery, rubber items, and organic chemicals to Pakistan, while Pakistan primarily exports rice, textiles, seafood, and minerals to Malaysia. Authorities report an increasing interest in expanding the trade portfolio to include IT services, halal certification, and more valuable manufactured products beyond just commodities.
Since 2008, the two nations have engaged in trade under the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA), which allows preferential market access for products and services.
In October 2024, they entered into four new memorandums of understanding to enhance cooperation in trade, investment, and industrial partnerships, and subsequently decided to renegotiate and modernize their bilateral free trade framework to incorporate emerging prospects in digital and sustainable industries.