Iran calls for measures to remove trade barriers with Pakistan

High customs duties and lack of banking channels key issues that need to be addressed


​ Our Correspondent December 15, 2019
Representational image. PHOTO: REUTERS

KARACHI: In order to improve the trade relations between Pakistan and Iran, it is really essential that steps are taken to deal with the barriers hindering smooth trade between the two brotherly countries while the high customs duties need to be brought down to encourage legal trade and discourage smuggling, said Iran’s former commercial attaché in Pakistan Morad Nemati Zargaran.

Addressing the Karachi Chamber of Commerce and Industry, Zargaran - who was also leading the Iranian delegation - said that in addition to bringing down the high customs duties, formal banking channel between the two countries has to be activated, which was widely being demanded by the business communities of the two countries since quite some time now.

While referring to the China-Pakistan Economic Corridor (CPEC), Zargaran said that this essential project was going to open up huge opportunities not just for Pakistan but also for Iran and they (Iran) want to become part of this project, which would surely ensure prosperity in the entire region.

He also underscored that that the business communities of the two countries will have to meet more frequently and improve their contacts, besides holding single country exhibitions which would improve trade and investment between the two countries.

Zargaran assured full support and cooperation to the business community so that trade could improve further and they can collectively explore new avenues for trade cooperation.

Also speaking on the occasion, KCCI Vice President Shahid Ismail said, “Despite being brotherly countries, trade remains low, hence, Pakistan and Iran must make collective efforts to explore new avenues.”

He pointed out that the bilateral trade between Pakistan and Iran was much less than the potential as Pakistan exports stood at a mere $330.2 million while imports were around $1.247 billion during 2018.

Ismail noted that negotiations on Free Trade Agreement (FTA) are underway as both the countries have shared their desire of upgrading Preferential Trade Agreement (PTA) into FTA for which initial drafts have already been shared.

He added that the State Bank of Pakistan has also shared draft of Memorandum of Understanding (MoU) for signing its Banking Paying Arrangement (BPA) with Iran’s Iranian Bank Markazi Jomhouri.

Both countries have already signed agreement 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 (LC) clearance.

Published in The Express Tribune, December 15th, 2019.

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