FPCCI calls for signing free trade agreement with Iran

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday stressed the need to sign Free Trade Agreement (FTA) with Iran to boost bilateral trade between the two economies.

Shaikh Khalid Tawab, Senior Vice President of the FPCCI, said that the signing of FTA would help reduce smuggling.

Currently, Pakistan and Iran enjoys Preferential Trade Agreement (PTA); wherein the concessions on 18 percent of items are given, but this PTA cannot fully materialised due to international sanctions on Iran and Pakistan lost its market of mangoes, rice, citrus fruit and other agriculture items, he said.

Tawab said that Iran plays a leading role in the international organisations where Pakistan is also an active member such as OIC, D8, ECO, G24 and G77.

The stronger trade and business ties with Iran will not only help improve Pakistan’s economic condition, but will also lead to greater stability and economic prosperity in the region.

Moreover, the two countries should promote trade through land borders by opening new trade routes such as Gabd-Reemdan and Mand-Pashin; which will help improve the economy of Balochistan, he said, adding that internationally, it has been proved that opening of new trade borders among the neighbouring countries will boost bilateral trade, which can be seen in case of India that open its borders with Bangladesh and Nepal.

Quoting statistics, Tawab said that the bilateral trade between Pakistan and Iran stood at $293.18 million; wherein the volume of Pakistan’s exports to Iran is $32.29 million and imports from Iran is $260.89 million.

Pakistan’s major exports to Iran included paper and paperboard, cereals, textiles, plastic goods, vegetables and fruits. The major commodities Pakistan imports from Iran included electrical machinery, minerals, oil, organic chemicals, iron and steel, he added.

He welcomed the development of Chahbahar Port, as it would serve as a sister port for enhancing connectivity in the region.

To improve trade relations, the opening of banking channels between the two countries and holding of exhibitions and trade fairs for business-to-business contacts is the need of the hour, he added. Talking about the Pakistan-Iran gas pipeline project, he underscored the need of early completion of gas pipeline from Pakistan, as Iran had already built the pipeline up to the Pakistan-Iran border.

Moreover, Pakistan should link this project with the China-Pakistan Economic Corridor (CPEC) to transport Iranian gas to China through Pakistan for making Pakistan a regional hub of trade and energy corridor.