Pakistani, Iranian entrepreneurs urged for joint ventures

LAHORE: Former senior vice president of the Lahore Chamber of Commerce and Industry (LCCI) Mian Nauman Kabir has urged the Pakistani businessmen to expedite the process of joint ventures with their Iranian counterparts, as the two countries have huge potential to touch the staggering figure of $10 billion trade.

Talking to a group of exporters on Monday, Kabir said that Pakistan and Iran not only have common border, but also share a glorious history.

The two countries have close cultural affiliations and remained steady trading partners, as well, but in the recent years, the momentum of trade has been seriously affected, he said.

Pakistan and Iran have the potential to cater to each other’s needs provided the businessmen have the exposure to the available opportunities, he said, adding that Iran is ready to start barter trade with Pakistan to facilitate the businessmen and to jack-up the volume of two-way trade.

The business communities of the two countries would have to increase interaction to share their experiences in the larger interests of the people, Kabir said.

The volume of mutual trade between the two countries does not match their respective potentials, the former LCCI official said, adding that the chambers of commerce in the two countries would have to focus on expansion of trade by holding single-country exhibitions and through trade delegations to each other’s country.

Dissemination of sector-specific and trade-related information would go a long way in achieving the goal. Both the countries should share their experiences in the field of science and technology also.

Agriculture, tourism and metal industry of Iran have investment opportunities; therefore, Pakistani businessmen should come forward.

Kabir expressed the hope that the Iranian trade planners would ensure greater role to be played by Iran, particularly in regional trade.

It is a fact that the economic prosperity lies in integration with the neighbouring countries.

Pakistan is eagerly looking forward to expanding trade relations with Iran, he said.

“It should be a matter of concern for both the sides that in 2014, the volume of bilateral trade has decreased to $229 million, which is a record low in this decade.”

“In 2009 and 2008, our two-way trade was as high as $1.21 billion and $1.16 billion, respectively, Kabir added.

He said that although imports from Iran to Pakistan are witnessing increasing trend, but Pakistan's exports to Iran are constantly dropping.

For example, Pakistan had exported goods to Iran worth $142 million in 2012, which dipped to $43 million in 2014, while Pakistan imports from Iran in 2012 were that of $120 million, which inched up to $186 million in 2014.

He stressed the need to find ways to increase the volume of two-way trade, adding that Pakistan is already exporting meat to Iran.

Dairy sector can be another area to be explored for this purpose.

The potential of two-way trade between Pakistan and Iran is estimated to be over $2 billion, but it can only be materialised by making all-out efforts, he said, adding, “Our governments and respective private sectors should collaborate with each other on a regular basis.”

The former LCCI official expressed the hope that work on Pakistan-Iran Gas Pipeline project will be expedited. It will not only play a significant role in addressing the energy crisis of Pakistan, but further augment the trade relations between the two countries, he said, adding that import of electricity from Iran can also be a good venture.

“We have deliberated much to allow the businessmen of both the countries for trading in local currencies, but a lot is desired to be done at the government level to formalise it, he said.

"The close interaction between our institutions can play a pivotal role in obtaining the desired objectives.”  “We will appreciate to have trade inquiries through your good offices," he added.