By By our correspondent
Iran has already started working on the project which has become imperative for Pakistan to supplement its fast depleting gas reserves, said Iranian Consul General Masoud Mohammad Zamani.
“Negotiations have been continuing on the project for the past 12 years. At first, there were reservations by the Indian government,” he said, referring to the pipeline that might go all the way to India. “But the Pakistani side is not showing enough interest despite the country’s rising energy needs.”
In a meeting held on Wednesday with the members of Karachi Chamber of Commerce and Industry (KCCI), Zamani held discussions on the key issues faced by businessmen in the way of enhanced trade. They highlighted that the main hurdle in enhancing business with Iran was the Letter of Credit (LC) related issue and the banking sanctions. Many businessmen are reluctant to do business with Iran considering the sanctions imposed on trade with the said country.
KCCI President Abdul Majid Haji Muhammad proposed that in order to remove this problem from both the sides, Iran should open a branch of its bank in Pakistan. He assured that the Karachi chamber will also pursue the demand with the finance and commerce ministers and the government.
Ateeq-ur-Rehman, Head of Banking Sub-committee, said that the Karachi chamber is willing to cooperate with Iran in opening a branch in Pakistan and also offered to cooperate with interested Iranian banks. Iranian Commercial Counsellor Ahmad Fasihi announced that in order to boost business, the visits of trade delegations between the two countries are anticipated, whereby in the year 2009-2010 a 40 member trade delegation from all provinces of Pakistan will visit Kermenshah province with collaboration of TDAP. Similarly, he said two trade delegations from Kurdistan and Khorasan Chamber of Commerce will also visit Pakistan in Jan 2010.
He also highlighted that a number to high level meetings were scheduled with the government to discuss trade initiatives with Pakistan. KCCI president highlighted that despite of being two nations of the same heritage; their trade relationship is not as strong as it should be. He said currently the volume of trade between Pakistan and Iran is less than $1 billion despite the previously noted 86 per cent increase in the volume of trade between Iran and Pakistan. “The trade volume between Pakistan and Iran is only $769 million which is not satisfactory given the potential both the countries have. Direct trade with Iran would cost us far less than what we have to do via Dubai” he said. He also invited the Iranian Counsel General to participate in the ‘My Karachi’ exhibition now scheduled to be held in June next year.