Global Rice News

KARACHI: Iran’s ambassador to Pakistan has proposed the establishment of border markets with Pakistan to boost trade between the two neighboring countries, according to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

During a visit to the FPCCI head office in Karachi, Ambassador Reza Amiri Moghadam emphasized that Iran is a major producer of petrochemicals and energy sources, and that Pakistan could benefit from reliable and affordable supplies to address its energy deficiencies.

The ambassador also highlighted the popularity of Pakistani rice and textiles in Iran. He expressed a desire to strengthen people-to-people, business-to-business, and chamber-to-chamber contacts between Iran and Pakistan, advocating for increased business tourism and trade exhibitions.

FPCCI President Irfan Iqbal Sheikh stated that enhancing trade with Iran could help Pakistan reduce its trade deficit, as the land-based route to Iran offers cost-effective shipping and logistics options.

However, Sheikh pointed out that the lack of banking channels between the two countries remains a major obstacle to boosting Pakistani exports to Iran. He suggested that a currency swap mechanism could provide a solution.

FPCCI Vice President Shaukat Omerson emphasized that Pakistan has a range of products and services that could be exported to Iran, including rice, fruits, vegetables, value-added textiles, sports goods, surgical instruments, pharmaceuticals, and IT services.

Omerson highlighted that the current bilateral trade of $2.4 billion falls short of the potential given the combined population of over 300 million in the two countries. He encouraged capitalizing on Pakistan’s inclusion in the TIR convention to explore land-based transportation opportunities for transit trade to Central Asian countries, Turkey, and beyond.

Overall, both Iran and Pakistan see the establishment of border markets as a promising step towards expanding trade and economic cooperation between the two nations.

Source