Boost trade through border markets proposed by Iranian envoy
Published on: December 2, 2023.
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“It is a gateway to African countries with a huge scope for Pakistani products, especially textiles, cosmetics, cotton, pharmaceuticals and plastic,” said FPCCI President Irfan Iqbal Sheikh.
Iran proposes establishing border markets to enhance trade with Pakistan
In a press statement released on Friday, Ambassador of Iran in Pakistan, Reza Amiri Moghadam, proposed the establishment of border markets between Iran and Pakistan to boost trade ties. During a high-profile visit to the head office of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Ambassador Moghadam highlighted Iran’s position as a global leader in petrochemical and energy production. He emphasized that Iran could play a crucial role in helping Pakistan address its energy deficiencies by providing reliable and cost-effective supplies.
Ambassador Moghadam also acknowledged the popularity of Pakistani rice and textiles in Iran, citing the strong cultural and religious bonds shared by the two nations. He expressed his desire to strengthen people-to-people, business-to-business, and chamber-to-chamber contacts between Pakistan and Iran. The ambassador also offered assistance to the Pakistani business community in obtaining visas and participating in trade exhibitions and fairs in Iran.
FPCCI President Irfan Iqbal Sheikh welcomed the proposal, recognizing that enhancing trade with Iran could be a strategic solution to Pakistan’s chronic trade deficit. He highlighted the potential for price-competitive exports to Iran due to minimal shipping and logistics costs through the land-based route. However, Sheikh identified the lack of banking channels as a major hindrance to increasing Pakistani exports to Iran. He suggested that an effective currency swap mechanism could help overcome this challenge.
FPCCI Vice President Shaukat Omerson agreed with Sheikh’s comments, noting that Pakistan has significant export potential in various products and services for the Iranian market. These include rice, fruits, vegetables, value-added textiles, sports goods, surgical instruments, pharmaceuticals, and IT services. Omerson emphasized that the current bilateral trade of $2.4 billion, while significant, falls below the potential considering the combined population of over 300 million for both countries.
Overall, the proposal to establish border markets between Iran and Pakistan has the potential to strengthen trade ties and address trade deficits. With Iran’s prominence in energy production and Pakistan’s export potential, increased cooperation between the two nations could lead to mutually beneficial outcomes.
Source: Tribune
