Global Rice News

In a high-profile visit to the FPCCI Head Office, Ambassador of Iran in Pakistan, Reza Amiri Moghadam, proposed the establishment of border markets to boost trade between Iran and Pakistan. This proposal was welcomed by Irfan Iqbal Sheikh, the President of FPCCI, who believes that enhancing trade with Iran can help address Pakistan’s chronic trade deficit issues. The close proximity of the two countries and the use of land-based routes make exporting to Iran cost-effective, eliminating shipping and logistics costs.

One of the main impediments to increasing Pakistani exports to Iran is the lack of banking channels between the two countries. Irfan Iqbal Sheikh emphasized the need for an effective currency swap mechanism to overcome this issue. Shaukat Omerson, the VP of FPCCI, highlighted the numerous potential products and services that Pakistan can export to Iran, including rice, fruits, vegetables, textiles, sports goods, surgical instruments, pharmaceuticals, and IT services.

Despite the current bilateral trade volume of $2.4 billion, which is relatively low considering the combined population of over 300 million people in the two countries, there is room for significant growth. Shaukat Omerson urged the utilization of land-based transportation opportunities provided by Pakistan’s inclusion into the TIR convention. He also suggested the use of land-based routes for transit trade with Central Asian countries, Turkey, and beyond.

Ambassador Reza Amiri Moghadam highlighted Iran’s status as a top producer of petrochemical and energy sources, while Pakistan heavily relies on imported oil and energy. This makes Iran an important country for Pakistan to bridge its energy deficiencies through reliable and affordable supplies. The Ambassador also praised Pakistani rice for its taste and Pakistani textiles for their global reputation. He expressed a desire to strengthen people-to-people, business-to-business, and chamber-to-chamber contacts between the two countries. The Iranian embassy is committed to facilitating Pakistani business tourism, including visas and participation in trade exhibitions and fairs in Iran.

Overall, the proposed partnership between Iran and Pakistan presents significant economic opportunities for both nations. It would not only boost trade and address trade deficit issues for Pakistan but also provide a reliable and affordable energy source for Pakistan. The cultural and religious bonds existing between the two countries further support the development of strong bilateral relations.

Source: [Islamabad Post](https://islamabadpost.com.pk)