Post-sanctions: Pakistan expects positive response from Iran
Five-year strategic plan to be used as tool to deepen relations
Five-year strategic plan to be used as tool to deepen relations. PHOTO: REUTERS
ISLAMABAD:
In the backdrop of international sanctions being lifted off Iran, Pakistan is expecting a positive response from the Islamic republic concerning the ‘five-year strategic plan’ for comprehensive trade and investment cooperation.
The Commerce Ministry has already paid several visits to Tehran and held meetings with the ‘Pak-Iran Joint Trade Committee’ (JTC), but with Iran looking to elbow its way past international sanctions, a response was found wanting.
However, with the sanctions now lifted, Pakistan is looking to engage the country once again.
“Now that the sanctions have finally been lifted, Pakistan expects a breakthrough over the plan,” said a senior official in the ministry.
“During the JTC meetings, it was agreed that a five-year strategic plan would be prepared for comprehensive cooperation between the two countries including the expansion of the current Preferential Trade Agreement (PTA) to pave the way for a Free Trade Agreement (FTA),” explained the official.
“In pursuance of the decision, Pak-Iran Joint Working Group on Trade also met in August last year in Islamabad and committed to expand trade and investment.”
The meeting discussed the draft of the plan prepared by Pakistan, which included deepening/expansion of the PTA and measures related to the removal of non-tariff barriers, infrastructure development, connectivity, trade promotion and private sector cooperation.
“We hope that the Iranian side will convey its response to the plan shortly”, said the officer. “The key challenge is the absence of banking channels between the two countries.”
Expansion of PTA
The Pakistan-Iran Preferential Trade Agreement (PTA) was signed on March 4, 2004 and the agreement came into force on September 1, 2006 and is operational since then. Under the PTA, Pakistan has granted tariff concessions to Iran on 338 tariff lines (HS 06), while Iran has granted tariff concessions on 309 tariff lines. “According to the components of the proposed strategic plan, the PTA between the two countries would be further deepened keeping in view the current situation and market scenario,” said the official.
Trade facilitation
As per the proposed plan, components including the simplification of customs procedures, enhanced cooperation between customs authorities of both sides, opening more border points, multi-modal infrastructure development and improved connectivity are on the cards.
The two sides will make use of all available instruments for trade promotion including participation in trade fairs and exhibitions, dissemination of commercial intelligence and exchange of business delegation.
FDI promotion
Building on the bilateral investment treaty, both Pakistan and Iran will create a business friendly environment for products, services and investment originating from the other side.
Published in The Express Tribune, January 27th, 2016.
In the backdrop of international sanctions being lifted off Iran, Pakistan is expecting a positive response from the Islamic republic concerning the ‘five-year strategic plan’ for comprehensive trade and investment cooperation.
The Commerce Ministry has already paid several visits to Tehran and held meetings with the ‘Pak-Iran Joint Trade Committee’ (JTC), but with Iran looking to elbow its way past international sanctions, a response was found wanting.
However, with the sanctions now lifted, Pakistan is looking to engage the country once again.
“Now that the sanctions have finally been lifted, Pakistan expects a breakthrough over the plan,” said a senior official in the ministry.
“During the JTC meetings, it was agreed that a five-year strategic plan would be prepared for comprehensive cooperation between the two countries including the expansion of the current Preferential Trade Agreement (PTA) to pave the way for a Free Trade Agreement (FTA),” explained the official.
“In pursuance of the decision, Pak-Iran Joint Working Group on Trade also met in August last year in Islamabad and committed to expand trade and investment.”
The meeting discussed the draft of the plan prepared by Pakistan, which included deepening/expansion of the PTA and measures related to the removal of non-tariff barriers, infrastructure development, connectivity, trade promotion and private sector cooperation.
“We hope that the Iranian side will convey its response to the plan shortly”, said the officer. “The key challenge is the absence of banking channels between the two countries.”
Expansion of PTA
The Pakistan-Iran Preferential Trade Agreement (PTA) was signed on March 4, 2004 and the agreement came into force on September 1, 2006 and is operational since then. Under the PTA, Pakistan has granted tariff concessions to Iran on 338 tariff lines (HS 06), while Iran has granted tariff concessions on 309 tariff lines. “According to the components of the proposed strategic plan, the PTA between the two countries would be further deepened keeping in view the current situation and market scenario,” said the official.
Trade facilitation
As per the proposed plan, components including the simplification of customs procedures, enhanced cooperation between customs authorities of both sides, opening more border points, multi-modal infrastructure development and improved connectivity are on the cards.
The two sides will make use of all available instruments for trade promotion including participation in trade fairs and exhibitions, dissemination of commercial intelligence and exchange of business delegation.
FDI promotion
Building on the bilateral investment treaty, both Pakistan and Iran will create a business friendly environment for products, services and investment originating from the other side.
Published in The Express Tribune, January 27th, 2016.