Iran says hurdles keep bilateral trade potential untapped

KARACHI: Iran on Saturday said bilateral trade with Pakistan is not growing despite existence of huge potential due to some hurdles.

Commercial Attaché of the Iranian Consulate in Karachi Mahmoud Haji Yousefi Pour said huge potential exists to enhance trade and investment cooperation between the two countries.

“But because of some hurdles, trade is not prospering at the desired pace, which requires attention,” Pour said during a meeting with businessmen.

He was talking to Shahab Ahmed, president of Karachi Chamber of Commerce and Industry (KCCI). Iranian businessmen led by the Managing Director of Milad-e-Noor Ali Mohtassham Amiri were also present.

Ahmed said trade between Pakistan and Iran is much less than the potential as Pakistan’s exports stood at a mere $330.2 million, while imports were around $1.247 billion in 2018.

“Abundant opportunities are available in the Iranian dairy, livestock, meat and beverage sectors for Pakistani traders and investors while Pakistan can also take benefit of Iran’s petrochemical sector,” he said.

KCCI president said regular operation of container train would lend impetus to cargo and transit facilities between the two countries. He said trade remains low and Pakistan and Iran must make collective efforts to explore new avenues. “It has always been KCCI’s struggle to promote bilateral trade and the chamber has a very positive approach towards improving trade ties particularly with neighbouring countries.”

Ahmed said negotiations on free trade agreement are underway as both the countries have shared their desire of upgrading preferential trade agreement into free trade agreement for which initial drafts have already been shared. The State Bank of Pakistan has also shared draft of memorandum of understanding for signing of its banking paying arrangement with Iran’s Iranian Bank Markazi Jomhouri. Both countries have already signed memorandum of understanding through which channels would be opened in the central banks of both the countries for trade transactions that would reduce the usage of dollar account for letter of credit clearance.

He hoped that the ‘desperately’ needed proper banking channel between Pakistan and Iran becomes a reality soon which would surely boost the existing trade ties.

Amiri said Iranians are intending to improve trade ties with Pakistan and if serious efforts are made from both the sides Pakistan and Iran can certainly become powerful partners.