Pak-Iran urged to set up banking channels
Pakistan and Iran have exemplary trade and economic relations. Other countries have to spend billions of dollars to establish these kinds of relations, which Pakistan and Iran enjoy naturally, said Iranian Consul General Mohammad Reza Nazeri.
During his visit to the Lahore Chamber of Commerce and Industry (LCCI) on Thursday, Nazeri said that if someone wanted to travel to Iran, he could reach in less than three hours as a direct weekly flight from Lahore to Tehran would start from next week.
He said that Iranian and Pakistani businessmen had a strong relationship and the two countries along with the LCCI and Iranian Consulate should work more to further reinforce the relationship and cooperation. The Iranian consul general said, “Before the Covid-19 outbreak, our ambassador to Pakistan and the LCCI agreed to hold webinars to explore trade opportunities between the two countries,” but due to corona the plans were delayed.
“We hope that now as the situation seems better, these webinars will be held along with Persian language courses in the LCCI.”
Speaking on the occasion, LCCI President Mian Tariq Misbah said that both the countries had large domestic markets and unique geo-strategic competitive advantages but “we have yet to enhance our trade volume by making use of these opportunities”.
According to trade data available on ITC World Trade Map, Pakistan’s exports to Iran in 2019 stood at $4.6 million while its imports from Iran were $532.6 million, he added. “This put our total trade volume with Iran at around $537 million.”
Misbah said the potential sectors where Pakistan and Iran could enhance trade were value-added textile, pharmaceuticals and rice. Iran is one of the biggest consumers of denim in the region while Pakistani rice has a strong market in Iran.
“There is also a great potential for the pharmaceutical industry in Pakistan that can enhance its exports by tapping the Iranian market.”
LCCI Senior Vice President Nasir Hameed Khan noted, “We are well aware of the fact that the lack of sound banking channels is the prime cause of this low trade volume. Both Iran and Pakistan should collaborate to devise a specialised mechanism for enhancing trade.”
He said that the presence of an Iranian financial institution in Pakistan could greatly help in that regard. “It is also high time for both countries to make progress in barter trade mechanism for facilitating trade,” he added. LCCI Vice President Tahir Manzoor Chaudhry said that through strict vigilance on smuggling and undocumented trade on both sides, “we can improve the figures of bilateral trade”.
He added, “We are hopeful that once the Covid-19 situation improves, there will be regular exchange of export-oriented delegations, which will facilitate B2B interaction.”
He was of the view that it would help both sides in strengthening their knowledge about each other’s markets.
Published in The Express Tribune, November 6th, 2020.
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