Pakistan and Indonesia to Fast-Track CEPA by 2027; PM Shehbaz Sharif Eyes Indonesia’s Wealth Fund Model. -

In a significant move to deepen bilateral economic ties, Pakistan and Indonesia have officially committed to upgrading their existing Preferential Trade Agreement (PTA) into a Comprehensive Economic Partnership Agreement (CEPA) by 2027. The decision was reaffirmed during high-level talks in Islamabad on February 10, 2026, between Prime Minister Shehbaz Sharif and an Indonesian delegation led by the Minister for Investment and Downstream Industry, Rosan Roeslani.

Key Highlights of the Strategic Upgrade

The transition toward a CEPA is designed to unlock the true potential of bilateral trade, which reached approximately $4.1 billion in 2024.

Strategic Shift: Moving from a PTA to a CEPA will involve deeper concessions, the removal of non-tariff barriers, and the integration of trade in goods, services, and investment.
Sovereign Wealth Fund Model: PM Shehbaz Sharif expressed a keen interest in benefiting from Indonesia’s experience with its Sovereign Wealth Fund model to help mobilize long-term investment for Pakistan’s economic framework.
Sector Expansion: Beyond traditional commodities like palm oil, the new agreement will explore opportunities in Information Technology, cybersecurity, fintech, health, and education.
Institutional Support: To facilitate this transition, both nations have already established a Joint Trade Committee (JTC) to address trade barriers and support small and medium-sized enterprises (SMEs).
Investment Opportunities: Pakistan briefed the delegation on opportunities within its Special Economic Zones (SEZs), offering over 6,000 acres of land for potential Indonesian investment projects.