Iran affirms all-out support for trade initiatives from Pakistan

KARACHI: Iranian consulate was more than ready to back any trade and investment initiative taken by business community in Pakistan, especially Sindh, and would play an active role in the exchange of information on the concerned avenues on both sides, a diplomat said on Monday.

"One of my key duties here [in Pakistan] is to facilitate and develop political, economic, trade, academic and cultural relations and cooperation between Iran and Pakistan, especially development of trade relations with the province of Sindh,” Ahmad Mohammadi, Consul General of Iran said at an event held to commemorate 39th anniversary of Islamic Revolution at the consulate.

“Therefore, all the efforts of my colleagues are dedicated to facilitate access to each other's markets.”

The volume of trade between Pakistan and Iran has reached the mark of $1.5 billion per year, while Iran has said vowed to increase it to a record level of $5 billion. Trade Development Authority of Pakistan (TDAP) stats show the current trade volume between the two nations is $830 million, which is of no significance given the Persian Gulf country’s 127 billion euros worth of worldwide trade. The consul general said Iranian and Pakistani companies had an active presence in the exhibitions of the two countries and had signed many agreements with each other for promoting bilateral trade.

“This shows huge economic and trade potential existing on both sides, which must be utilised fully to the benefit of the two nations,” he added.

Mohammadi also mentioned the trade between the two countries posted a 33 percent year-on-year growth compared to the previous year. “Over last nine months, as a result of the facilities provided by the Iranian side to Pakistani rice exporters, the volume of Pakistani rice export to Iran had jumped up by 42 percent,” the envoy said.

Besides, he added, in view of the cultural wealth and tourism potential of the two countries, the Iranian embassy and the consulates made efforts for promoting pilgrimage and tourism travels between the two countries. The statement said the Iranian envoy was confident that during the current year also, Iran-Pakistan friendly relations and cooperation would develop further. "I extend my thanks to the government of Pakistan and Sindh provincial bodies for their cooperation," he said.

Analysts say most significantly, an increased regional connectivity was likely to step up the volume of trade and services; however in reality there is little economic connectivity between the two states.

During last nine months Iran exported $634 million worth of products to Pakistan, while Pakistan also exported products valued at $348 million to Iran. The overall trade between the two countries stood at $982 million.