Pak-Iran: Framework of five-year trade, investment plan under way

Ministry of Commerce holds meeting to deliberate ways to enhance trade.

ISLAMABAD: Pakistan is framing a five-year trade and investment plan with Iran under the new scenario where the Islamic country has struck a nuclear deal with major international powers and is foreseeing the lifting of economic sanctions on exports of crude oil imposed almost a decade ago.

A two-member trade delegation has arrived in Islamabad on a two-day official visit to discuss trade expansion possibilities and opportunities.

“Pakistan is framing this comprehensive five-year trade plan with Iran to explore and tap the potential between the two countries,” said Ministry of Commerce Additional Secretary on Trade and Diplomacy Robbina Akhter.

“We have included trade facilitation, expansion of PTA, holding of exhibitions of commodities and expansion of business cooperation on the agenda,” she added.

Earlier, on Monday, a meeting was held in the Ministry of Commerce to devise a strategy to actively engage with Iran.

Read: Iran has not much gas for sale, Pakistan must act swiftly

It was informed in the meeting that during the past 10 years, 63% of Pakistan’s exports to Iran comprised rice and fruits; meat constituted the major part of the remaining 37%.

The meeting also deliberated upon measures to enhance rice exports to Iran which is among world’s largest importers of rice.

The FBR was urged to clamp down stringent measures at border crossing points with Iran to curb smuggling as it costs the exchequer a huge amount of revenues.

The meeting also decided to negotiate further the high tariffs imposed by Iran despite a PTA in place since September 1, 2006.

The issue of fluctuations and inconsistencies in tariffs from Iran during different phases of the year will also be brought forth during bilateral talks in order to provide a predictable tariff regime to Pakistani exporters.

Read: Iran deal fuels tussle for gas pipelines in Pakistan

Under the PTA, Pakistan has granted tariff concessions to Iran on 309 tariff lines while Iran has granted tariff concessions to Pakistan on 338. Pakistan’s major sectors covered under the PTA are rice, fruits, cotton, cotton yarn, pharmaceutical products and cutlery. Pakistan exported $43 million worth of items to Iran in 2014 while it imported $186 million worth of items.

Published in The Express Tribune, August 26^th,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.