Below par: Pakistan’s trade with Iran negligible
Tehran and Kabul have five times more trade
On the occasion, Honardoost said both the countries must make a join effort to boost trade. PHOTO: EXPRESS
ISLAMABAD:
Trade between Pakistan and Iran was negligible when compared with the latter’s trade relationship with Turkey and China, said Iran Ambassador to Pakistan Mehdi Honardoost.
With Turkey, Iran has $20 billion worth of annual bilateral trade and with China it has $50 billion worth of commerce compared to trade valuing around $1 billion with Pakistan.
Talking to the business community at the Islamabad Chamber of Commerce and Industry (ICCI), the ambassador emphasised that Pakistan and Iran had tremendous potential to step up bilateral trade in various spheres, but lack of a payment mechanism through banking channels was a major obstacle in the way of realising the goals.
“Despite a preferential trade agreement between Pakistan and Iran, Tehran’s trade with Kabul is five times more than that with Islamabad,” he said. When the envoy was told that his country had imposed high tariffs on some Pakistani products, he replied that signing of a free trade agreement between the two sides would resolve all such problems.
He pointed out that Iranians preferred Pakistani products and asked Pakistan to step up efforts for early signing of the FTA. He said Iran’s biotechnology was better than many European countries and Pakistan could achieve beneficial results for its economy by enhancing cooperation with Iran in that area as well as pharmaceutical, agricultural and other fields.
The envoy assured businessmen that Iran’s embassy would fully cooperate with them in efforts aimed at enhancing bilateral trade.
Speaking on the occasion, ICCI President Khalid Iqbal Malik decried that Iran had slapped high tariffs on Pakistani products including textile, clothing, leather goods, rice, fruits and vegetables ranging from 90% to 200%. He asked Iran to reconsider the high tariffs in order to facilitate Pakistan’s private sector in promoting trade. The ICCI office-bearers revealed that Iran had maintained a permit system for imports and whenever it wanted to restrict imports of certain items, it refused to issue permits, which was hindering exports of Pakistan.
They emphasised that Iran should review its permit system and facilitate Pakistan’s exporters. Other businessmen stressed that Pakistan and Iran could focus on frequent exchange of trade delegations and organising exhibitions in each other’s country to explore new avenues of trade promotion.
They suggested that Pakistan should import gas and electricity from Iran to overcome its energy crisis and facilitate growth of business and industrial activities.
Published in The Express Tribune, December 10th, 2016.
Trade between Pakistan and Iran was negligible when compared with the latter’s trade relationship with Turkey and China, said Iran Ambassador to Pakistan Mehdi Honardoost.
With Turkey, Iran has $20 billion worth of annual bilateral trade and with China it has $50 billion worth of commerce compared to trade valuing around $1 billion with Pakistan.
Talking to the business community at the Islamabad Chamber of Commerce and Industry (ICCI), the ambassador emphasised that Pakistan and Iran had tremendous potential to step up bilateral trade in various spheres, but lack of a payment mechanism through banking channels was a major obstacle in the way of realising the goals.
“Despite a preferential trade agreement between Pakistan and Iran, Tehran’s trade with Kabul is five times more than that with Islamabad,” he said. When the envoy was told that his country had imposed high tariffs on some Pakistani products, he replied that signing of a free trade agreement between the two sides would resolve all such problems.
He pointed out that Iranians preferred Pakistani products and asked Pakistan to step up efforts for early signing of the FTA. He said Iran’s biotechnology was better than many European countries and Pakistan could achieve beneficial results for its economy by enhancing cooperation with Iran in that area as well as pharmaceutical, agricultural and other fields.
The envoy assured businessmen that Iran’s embassy would fully cooperate with them in efforts aimed at enhancing bilateral trade.
Speaking on the occasion, ICCI President Khalid Iqbal Malik decried that Iran had slapped high tariffs on Pakistani products including textile, clothing, leather goods, rice, fruits and vegetables ranging from 90% to 200%. He asked Iran to reconsider the high tariffs in order to facilitate Pakistan’s private sector in promoting trade. The ICCI office-bearers revealed that Iran had maintained a permit system for imports and whenever it wanted to restrict imports of certain items, it refused to issue permits, which was hindering exports of Pakistan.
They emphasised that Iran should review its permit system and facilitate Pakistan’s exporters. Other businessmen stressed that Pakistan and Iran could focus on frequent exchange of trade delegations and organising exhibitions in each other’s country to explore new avenues of trade promotion.
They suggested that Pakistan should import gas and electricity from Iran to overcome its energy crisis and facilitate growth of business and industrial activities.
Published in The Express Tribune, December 10th, 2016.