New border point to deepen Pakistan-Iran trade

Both sides making efforts to remove irritants to stronger bilateral ties

ISLAMABAD:

The business community on Friday hailed the decision taken by the Iranian government for opening another border point to increase the volume of bilateral trade between the two Muslim countries.

Speaking to a delegation of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Saarc Chamber of Commerce and Industry President Iftikhar Ali Malik said, "This a good decision taken by Iran to further strengthen and deepen bilateral cooperation in terms of trade with Pakistan." He added,

"The volume of two-way trade between Pakistan and Iran is negligible and mutual trade does not match the respective potential." Currently, bilateral trade stood at $359 million including exports to Iran amounting to $36 million and imports worth $323 million, Malik pointed out.

He highlighted that in recent times both countries were making serious efforts to overcome persistent irritants to stronger bilateral relations. Both sides were committed to exploring areas of economic interests including trade and gas pipeline projects. During the meeting, it was highlighted that Iran, being rich in natural resources such as oil and gas, was important for an energy-deficient country like Pakistan.

Speaking on the occasion, FPCCI Senior Vice President Hanif Gohar said increased bilateral cooperation, particularly better trade and economic ties, would be beneficial to the two countries. He said the Iranian government was opening state-of-the-art Rimdan border crossing point, which was believed to be suitably located for export and import of fruits, livestock, construction material and petroleum products.

FPCCI Vice President Chaudhry Zahid Iqbal Arain said it was another good omen that both sides agreed to set up a joint economic commission for steering bilateral trade and economic ties. He pointed out that Pakistan faced the challenge of trade deficit with exports around $24 billion and imports valuing at $48.5 billion. Arain lamented that given the demographic challenges, Pakistan's latest issues included balance of payments deficit, development of energy sector and lower foreign investment.

Those issues should be overcome to reach the optimum economic growth required for the employment of growing urban population, particularly those under the age of 25 years, he added.