Despite deep political, cultural relations, Pakistan-Iran trade volume is unsatisfactory

Shiite News: (Report/SM Abidi) In spite of deep political and cultural relations, Pakistan-Iran trade volume is unsatisfactory.

Iran’s Consul General in Karachi Hassan Noorian has said that despite good political relations and deep cultural history, the trade between Iran and Pakistan is not satisfactory.

Current trade volume is around $1.5 billion annually, which is not satisfactory.

He expressed these views while addressing a meeting on the occasion of his visit to Karachi Chamber of Commerce and Industry (KCCI).

Chairman Businessman Group and Chief Executive TDAP Zubair Motiwala, President KCCI Muhammad Tariq Yusuf, Senior Vice President Tauseef Ahmad, Vice President Muhammad Haris Agar, Chairman Diplomatic Missions and Embassies Liaison Sub-Committee Zia-ul-Arifin, Ex. Presidents Majeed Aziz, Iftikhar Wahra and KCCI Managing Committee members also attended.

Consul General Hassan Noorian has said that the governments of Pakistan and Iran have set a target of $5 billion in trade volume which can be easily achieved.

In particular, two MoUs have been signed, of which the first MoU is for the establishment of a joint business council between Pakistan and Iran, while the second MoU is for arbitration of trade disputes.

Meanwhile, KCCI and Isfahan Chamber have also signed an MoU to improve cooperation between the business community of the two countries.

The Iranian Consul General said that the most important development is the removal of prohibited items from the list of items to be imported from Pakistan under the Iran-Pakistan PTA.

He said that Iran and Pakistan, being neighboring countries, share a common border of about 1000 km, both have a common history and culture, so both countries meet each other’s needs, including Iranian natural gas, crude oil and petrochemical products while Pakistani agricultural products can also be exported to Iran.

Describing the lack of banking channel as the main obstacle to smooth trade, he said that in order to deal with this problem, Iran has proposed to the Pakistani government and the State Bank of Pakistan, through the national currencies of the two countries, in addition to devising a barter trade mechanism, also allow trade or open an Iranian bank in Karachi, although an MoU for barter trade was signed between the Ministry of Commerce of Iran and Pakistan, while Quetta and Zahedan Chambers were allowed to start barter trade.

But due to some technical issues barter trade through these platforms has not started till now.

Hasan Noorian further said that Trade Promotion Organization (TPO) reached an understanding with Chairman TDAP of Iran in response to the invitation given by Chief Executive Trade Development Authority of Pakistan (TDAP) Zubair Motiwala.

They will visit Karachi on January 16, 2023 to sign a memorandum of understanding under which the two organizations will focus on removing trade barriers and explore ways to enhance trade ties.

Apart from signing the TPO MoU, the Chairman will also attend Iran’s Single Country Exhibition at the Karachi Expo Center, which will begin on January 16.

He asked the members of KCCI to actively participate in making the Irani Exhibition a success, seeking input from the business community on ways to further improve trade relations.

Chairman BMG and TDAP Zubair Motiwala in his address warmly welcomed the initiative of Iran to organize Single Country Exhibition in Karachi, not only TDAP but also he assured the full cooperation of Karachi Chamber.
He said that KCCI has been organizing “My Karachi” exhibition regularly for many years and has the requisite expertise to organize such events, so Iran’s full support in organizing a single country exhibition in an impressive manner.

Commenting on the trade relations between the two brotherly countries, he suggested that confectionery items, petroleum products and its raw materials, plastics and many other products in which Iran specializes could be imported to Pakistan, while tea, rice , cloth, garments and many other products can be exported to Iran.

While welcoming the Iranian Consul General, KCCI President Tariq Yusuf pointed out that despite the excellent brotherly relations between Pakistan and Iran, the bilateral trade volume is much less than the potential to reach 5 billion dollars, which is welcome.

KCCI and Isfahan Chamber recently signed a landmark Memorandum of Understanding to develop business relations and establish cooperation mechanisms and establish a practical framework for mutual cooperation between the two chambers.

Referring to the negotiations on the Free Trade Agreement (FTA), he said that if it becomes effective, it will restore free Iran bilateral trade to a new level and promote deeper financial and economic cooperation.

He also emphasized on the need to expand the barter trade basket by adding more products to facilitate investment and facilitate the importers and exporters of the two countries which will surely deepen Pak-Iran economic cooperation.

He said that Pakistan-Iran Joint Trade Committee agreed to phase-wise implementation of border markets and ensure access of investors to Special Economic Zones to promote trade between the two countries which is formal trade between the two countries. For strengthening the cross-border economic cooperation we should discourage illegal cross-border trade.