Pakistan, Iran committed to promote bilateral trade

ISLAMABAD: Pakistan and Iran on Friday reiterated a resolve to promote economic and trade linkages between the two countries by building on geographical proximity and economic commonalities.

Iran’s Deputy Minister of Economic and Finance Affairs Hassan Abghari and Managing Director Iran Foreign Investment Company called on the Minister for Finance and Revenue Hafeez Shaikh, at the finance division.

The finance minister underscored needs to find ways for furthering trade relations. The Pakistan-Iran Investment Company can play a pivotal role in strengthening trade and investment between the two countries, he said.

The minister said the government is pursuing a broad-based economic reform agenda to achieve export led growth and sustainable economic development. He apprised him about the economic challenges posed by the COVID-19 pandemic and outlined socioeconomic measures taken by the Pakistan to lessen the adverse impact of the pandemic on marginalized sections of the society.

The government announced largest ever fiscal stimulus package and introduced the strategy of a smart lockdown to protect the vulnerable segments of the society which has been acknowledged worldwide, he said.

“The current government is firmly committed to correct fundamentals of the economy through effective policy making and targeted reforms with an aim to achieving sustainable and inclusive growth strategy,” he added.

The government is resuming cargo train operation with Iran and Turkey. The train will cover a distance of 6,566 kilometres in three countries.

The first such train service was launched in August 2009. The operation was shut down after eight rides due to security reasons.

Currently, there is an insignificant bilateral trade with Pakistan and Iran despite immense potential. Currently, the bilateral trade stands at $359 million including exports to Iran amounting to $36 million against its imports at $323 million.

Tariff and non-tariff barriers are major obstacles in the way of trade enhancement. All the four traditional transportation modes are available for bilateral trade, but unfortunately none of these modes of transportation are efficiently and economically utilised at present.

Iran is ready to export petrochemical, steel and liquefied petroleum products to Pakistan in return of rice, meat and other agriculture products in a barter trade arrangement, its top official said.

Iran is willing to start barter trade with Pakistan with energy and agriculture sectors having potential to increase exports and imports, Iranian Consul General Reza Nazeri said during a meeting with businessmen. Iranian government is ready to facilitate Pakistan’s private sector to promote bilateral trade and investment, he said in a statement.