Global Rice News

A Proposal to Enhance Trade Ties Between Pakistan and Iran

During a recent visit to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) head office, Ambassador of Iran in Pakistan, Reza Amiri Moghadam, presented a proposal to establish border markets between the two nations in order to strengthen trade ties. This proposal aims to leverage Iran’s position as a leading producer of petrochemical and energy sources to help address Pakistan’s energy deficiencies. Ambassador Moghadam emphasized the potential for Iran to be a significant partner in bridging this gap, considering Pakistan’s reliance on imported oil and energy sources.

The proposal also acknowledges the popularity of Pakistani rice and textiles in Iran, highlighting the strong cultural and religious bonds between the two countries. Ambassador Moghadam expressed his desire to strengthen people-to-people, business-to-business, and chamber-to-chamber contacts with Pakistan. He specifically mentioned the need to increase business tourism between the two countries and offered the Iranian embassy’s support in facilitating the Pakistani business community with visas and participation in trade exhibitions and fairs in Iran.

FPCCI President Irfan Iqbal Sheikh welcomed the proposal, recognizing that enhanced trade with Iran can be a strategic solution to Pakistan’s chronic trade deficit. Sheikh emphasized the potential for price-competitive exports due to the proximity of Iran and the minimal shipping and logistics costs associated with the land-based route. However, he also identified the lack of banking channels as a significant obstacle to increasing Pakistani exports to Iran. Sheikh suggested that implementing an effective and functional currency swap mechanism could help overcome this challenge.

FPCCI Vice President Shaukat Omerson echoed Sheikh’s sentiments, highlighting the vast potential of various Pakistani products and services in the Iranian market. These include rice, fruits, vegetables, value-added textiles, sports goods, surgical instruments, pharmaceuticals, and IT services. While the current bilateral trade between Pakistan and Iran stands at $2.4 billion, Omerson emphasized that this figure falls short of the potential considering the combined population of over 300 million for the two countries.

This proposal to establish border markets and strengthen trade ties between Pakistan and Iran presents an exciting opportunity for both nations. It has the potential to boost economic growth, address energy deficiencies, and expand trade opportunities in various sectors. By leveraging the cultural and religious bonds shared by the two countries, as well as their geographical proximity, this proposal aims to enhance bilateral cooperation and create a mutually beneficial trade relationship.

Source: https://tribune.com.pk