Pak-Iran pact to prepare FTA ground: PIAF chairman

LAHORE: Chairman Pakistan Industrial and Traders Associations Front (PIAF) Irfan Iqbal Sheikh said the pact between Pakistan and Iran would remove non-tariff barriers in bilateral trade and prepare the ground for a free trade agreement (FTA).

Talking to the media here on Sunday, he said it was remarkable that both the countries agreed to work on issuing long-term multiple entry visas to businessmen and increasing direct air flights to boost the prospects of trade.

Trade in agriculture and mineral sectors offered tremendous scope and Pakistan and Iran were ideally placed and capable enough to complement each other.The prospects of export of services are far greater in transportation, financial, communication, insurance and IT fields, he mentioned.

The PIAF chairman said: “We can get cheaper oil from Iran and by exporting rice to Iran we can get millions in foreign exchange. By formulating a better strategy, we can get our share back in the Iranian market as India has overcome nowadays. The trade can extended to up to $7 billion.”

He termed the signing of five-year Strategic Trade Cooperation Plan (2016 2021) as the beginning of a new era, which provides a great opportunity to the two nations to enhance economic cooperation to new heights.

Irfan Iqbal Sheikh urged the commerce ministry to explore various avenues to enhance the bilateral trade to $5 billion in five years in accordance with the vision of the top political leadership of the two countries during the recent visit of the Iranian president. He termed it a good omen that Iran would hold a trade and investment exhibition in Pakistan in September this year adding that private sector of two countries should take the lead in strengthening the bilateral relations in all sectors.

The PIAF Vice Chairman, Tanveer Sufi, also welcomed the recent trade ties with Iran and hoped that with re-continuation of the banking system the import export would start and LCs would open from both sides, which would be beneficial for Pakistan as exports needed some support for going in upward direction.