Iranian envoy suggests border markets with Pakistan to enhance trade
Published on: December 2, 2023.
Filed under:
Iran’s ambassador to Pakistan has put forward a proposal to establish border markets between Iran and Pakistan in order 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 one of the world’s leading producers of petrochemical and energy sources, making it a valuable source of reliable and affordable energy supplies for Pakistan.
The ambassador also highlighted the popularity of Pakistani rice in Iran, as well as the world-famous textiles produced by Pakistan. He expressed his desire to strengthen people-to-people, business-to-business, and chamber-to-chamber contacts between the two countries.
FPCCI President Irfan Iqbal Sheikh pointed out that increasing trade with Iran could help alleviate Pakistan’s persistent trade deficit. The proximity of the two countries and the availability of land-based routes make exporting to Iran cost-effective, with minimal shipping and logistics costs.
However, Sheikh noted that the lack of banking channels between Pakistan and Iran is a major obstacle to boosting Pakistani exports. He suggested a currency swap mechanism as a potential solution.
FPCCI Vice President Shaukat Omerson identified several products and services that Pakistan could export to Iran on a large scale, including rice, fruits, vegetables, textiles, sports goods, surgical instruments, pharmaceuticals, and IT services. He also emphasized that the current bilateral trade volume of $2.4 billion is far below the potential for the two countries, considering their combined population of over 300 million.
Omerson urged the utilization of land-based transportation opportunities provided by Pakistan’s inclusion in the Transit International Routier (TIR) convention. This would enable transit trade to Central Asian countries, Turkey, and beyond.
Overall, increasing trade between Iran and Pakistan has the potential to benefit both countries economically and strengthen their bilateral ties.
Source
