Iranian envoy proposes border markets to boost trade

Highlights potential to help Pakistan address energy deficiencies

KARACHI:

During a high-profile visit to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) head office, Ambassador of Iran in Pakistan, Reza Amiri Moghadam, has put forth a proposal to establish border markets between the two nations, aiming to enhance trade ties, according to a press statement released on Friday.

Highlighting Iran’s position as one of the world’s top producers of petrochemical and energy sources, Ambassador Moghadam underscored its potential to play a crucial role in helping Pakistan address its energy deficiencies through reliable and cost-effective supplies. Given Pakistan’s dependency on imported oil and energy sources, the ambassador sees Iran as a significant partner in bridging this gap.

Ambassador Moghadam also acknowledged the popularity of Pakistani rice and textiles in Iran, citing the strong cultural and religious bonds shared by the two countries. Expressing his desire to strengthen people-to-people, business-to-business, and chamber-to-chamber contacts with Pakistan. “We need to increase business tourism between the two countries and Iranian embassy is all-willing to facilitate the Pakistani business community in visas and participation into trade exhibitions and fairs in Iran,” he said.

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FPCCI President Irfan Iqbal Sheikh welcomed the proposal, highlighting that enhancing trade with Iran could be a strategic solution to Pakistan’s chronic trade deficit. Considering Iran’s proximity, Sheikh highlighted the potential for price-competitive exports due to minimal shipping and logistics costs through the land-based route.

However, Sheikh identified the lack of banking channels as a significant impediment to increasing Pakistani exports to Iran. He suggested that an effective and functional currency swap mechanism could help overcome this challenge.

FPCCI Vice President Shaukat Omerson echoed the sentiment, noting that various products and services from Pakistan, including rice, fruits, vegetables, value-added textiles, sports goods, surgical instruments, pharmaceuticals, and IT services, have substantial potential in the Iranian market. He emphasised that the current bilateral trade of $2.4 billion, while significant, falls below the potential considering the combined population of over 300 million for the two countries.

Published in The Express Tribune, November 25^th, 2023.

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