Pakistan devises strategy to promote trade with Iran

KARACHI: Pakistan has devised a strategy to increase bilateral trade with Iran in the wake of lift of western sanctions from Iran, a minister said on Thursday. 

“As soon sanctions on financial transactions are lifted, the State Bank of Pakistan (SBP) will contact Iranian central bank to build formal links,” said Khurram Dastagir Khan, commerce minister, addressing a press conference at the Trade Development Authority of Pakistan (TDAP).

“Several restrictions on Iran have been lifted by the international community. However, bar on financial transactions is still there,” Khan said.  

He said there is a potential of agri products’ exports to Iran. He added that a delegation would go Iran to discuss export of leading items, including rice and fruit.

The minister said holding Pakistan trade exhibition in Tehran is under consideration. “As Iranian government gives approval to this plan, Pakistani entrepreneurs will showcase their products in Tehran,” he added.

He said presently only one trade route between Pakistan and Iran is operational. “Two new border routes are also under consideration for enhancing bilateral trade,” he added.

Khan said the government is also giving importance to infrastructure development. He said Quetta-Taftan road will be developed and rail link between Quetta- Zahedan be upgraded.

In the post-sanctions scenario, Pakistan and Iran will be able to construct gas pipeline projects. He said that Pakistan would start construction of Pak-Iran gas pipeline following banking channel setup.

The minister hoped that a new era of growth would be witnessed in Balochistan because of the China Pakistan Economic Corridor (CPEC) projects.

The commerce minister gave detailed overview on the ongoing dialogue on redrafting Afghanistan Pakistan Transit Trade Agreement (APTTA).

He said both the countries agreed to adopt TIR Convention of the United Nations. He said by adopting this agreement Pakistan will have an access to Central Asian markets. He, however, clarified that under this arrangement India was not given access to export their products to Afghanistan.

He said India is not part of TIR convention. He said Afghanistan has an access to India only through Pakistani waters. “So far no road link has been provided for this purpose,” he added.

The minister said TIR convention will remove hassles in transit trade as drivers will be able to move freely without having visa restrictions.

He said sixth round of Afghanistan Pakistan Transit Trade Cooperation Authority (APTTCA) was held on February 14-15 in Islamabad.

The minister said in the latest review of generalised scheme of preferences plus, the European Union praised Pakistan efforts to comply with conventions.  He said in Euro term, the exports to European Union increased 31 percent in 2014/15.