FPCCI hails lifting of sanctions on Iran

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) welcomed the government decision of lifting of sanctions on trade with Iran, saying it will enhance bilateral economic relations.

President Abdul Rauf Alam at FPCCI, in a statement on Saturday, appreciated the Finance Minister Ishaque Dar. He hoped that all the economic projects with Iran would be revived. 

Alam said opportunities of the Iran-Pakistan gas pipeline and 1,000 megawatts electricity import projects will be restored. 

He further said the imported electricity from Iran is much cheaper than the electricity produced by the independent power producers (IPPs). Currently, Pakistan is importing 100MW electricity, which should be extended to 3,000MW, he added.

FPCCI chief said the neighbouring Pakistan and Iran are traditional trading partners since long. A joint business council was formed in 2001 for the trade liberalisation under the ages of national chambers of both the countries. 

He said trade volume between Pakistan and Iran drastically declined to $431.765 million in 2010-11 from $1,220.90 million in 2009-10 and $1321.59 million in 2008-09 despite their bilateral preferential trade agreement.

Alam, who is also the president of the Economic Cooperation Organization Chamber of Commerce & Industry, said there is great potential of enhancing the bilateral trade to $5 billion between both the countries.

He also drew the attention of the government towards the importance of banking channel to be established with Iran immediately, which is required for flow of trade swiftly.

He said the lift of sanctions will lead to the success of Islamabad-Tehran-Istanbul cargo train project.

Alam further said the free trade agreement among ECO member countries is also in progress. “After that trade with ECO member countries in services, investment, banking and finance, industrial and agricultural sectors will be boosted,” he added.

He further said opening of trade with Iran will be in favour of the China-Pakistan economic corridor projects