Pak-Iran trade: Gilani calls for more volume

Iranian Commerce Minister Mehdi Ghazanfari says trade volume can be enhanced by encouraging their private sectors.

ISLAMABAD: Pakistan and Iran must exploit trade opportunities with a positive approach, consistent with our close relations in addition to working on a roadmap with time-lines to promote trade between the two countries, stressed Prime Minister Yousaf Raza Gilani. He said this while talking to Iranian Commerce Minister Mehdi Ghazanfari, who called upon the prime minister on Thursday.

Gilani appreciated the increase in trade between the two countries due to bilateral tariff concessions on more than 600 items under a preferential trade agreement signed in 2004. However, trade relations between the two countries do not match the opportunities available, he observed.

The prime minister said that measures such as economic integration, reduction in transaction costs and creation of a business-friendly environment were essential to expanding the volume of bilateral trade.

Ghazanfari termed his meeting with Pakistani officials ‘fruitful’ but at the same time pointed out that impediments to benefit from the preferential agreement need to be removed.

Business transactions between the two countries routed through the Asian Clearing Union were more time-consuming than a normal letter of credit (LC), while opening a LC through Iran’s sister companies in Dubai also adds to total cost, he added.

Ghazanfari highlighted that at present Iran trades with the world to the tune of $150 billion, mainly with the western countries and that its trade with the UAE has reached $15 billion and India $12 billion.

Published in The Express Tribune, January 14^th, 2011.