Iranian President’s Visit to Pakistan Could Finalize Free Trade Agreement, According to Ambassador
Published on: March 15, 2024.
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Ambassador of Iran to Pakistan Optimistic About Finalizing Bilateral Free Trade Agreement
ISLAMABAD – The Ambassador of Iran to Pakistan, Dr Reza Amiri Moghadam, expressed optimism that the bilateral Free Trade Agreement (FTA) between the two countries will be finalized during the upcoming visit of Iranian President Ebrahim Raisi to Pakistan. This agreement is expected to boost mutual trade between the two nations.
Speaking at the Islamabad Chamber of Commerce and Industry, Ambassador Moghadam highlighted that the visit of the Iranian president will lead to several economic and trade agreements between Pakistan and Iran. These agreements will further strengthen the economic ties and enhance bilateral business opportunities.
Currently, the bilateral trade volume between Pakistan and Iran stands at $2.5 billion, indicating an 11 percent increase in the last 11 months.
With the implementation of the FTA and other bilateral agreements, there is a strong possibility of doubling the trade volume between the two countries to reach $5 billion in the coming years. Ambassador Moghadam also emphasized the importance of the Pakistan-Iran gas pipeline, which will benefit both the domestic and industrial sectors of Pakistan. He praised Iran’s commitment to resolving Pakistan’s energy problems and highlighted the completion of the Pakistan-Iran gas pipeline project in 2009, which cost Iran $1 billion.
Iranian envoy mentioned that Iran has already established energy trade relationships with Turkey, Turkmenistan, Iran, and Azerbaijan. He suggested that Pakistan could adopt a similar approach to strengthen trade ties with these countries.
Addressing the issue of banking channels, Ambassador Moghadam acknowledged that it poses a challenge for Pakistan and Iran. However, he suggested that Pakistan can follow the example of Iran’s banking channels with Turkey, Bahrain, and Iraq to overcome this obstacle.
Furthermore, he emphasized the need for stronger air, maritime, and sea links between Pakistan and Iran. These links will not only strengthen economic relations but also connect Pakistan to regional and global trade networks. The ambassador highlighted the proximity of maritime links between the two countries, particularly Karachi and Gwadar, and Chabahar and Bandar Abbas ports. He proposed that Gwadar and Chabahar should be declared sister ports.
Ambassador Moghadam stressed that economic and trade links are crucial in the current era and connecting with regional and global trade through ports will take time. He also mentioned the potential of the Pakistan-China Trade Corridor and Belt and Road Initiative (BRI) projects in promoting economic integration between Pakistan and Iran, urging both countries to work on these opportunities.
He highlighted the significance of economic and trade corridors in connecting nations globally. By connecting to the North-South and East-West trade corridors, Pakistan and Iran can tap into regional trade, especially in Central Asia, and even reach European markets.
Furthermore, Ambassador Moghadam emphasized the potential of mutual trade between Pakistan and Iran. He suggested that the two countries can fulfill 70 percent of each other’s needs through trade. For example, Iran imports halal meat, and Pakistan can explore opportunities in this sector.
The Iranian ambassador also mentioned that Iran has implemented electronic visas for Pakistani businessmen, making the visa process more convenient. He called for further improvement in the relations between the business communities of Pakistan and Iran, particularly between the Islamabad Chamber of Commerce and Industry and the Tehran Chamber of Commerce and Industry.
In his address, President of the Islamabad Chamber of Commerce and Industry, Ahsan Zafar Bakhatwri, highlighted that Pakistan and Iran already have a trade volume exceeding $2.5 billion annually. Pakistan exports rice and other products to Iran, while people living in the border area of Balochistan benefit from Iranian food and goods purchased across the border. Bakhatwri mentioned a five-year trade cooperation plan for 2023-2028, aiming to increase the annual trade volume between the two countries to $5 billion.
He also highlighted that both Pakistan and Iran are members of regional and international organizations such as the Economic Cooperation Organisation (ECO) and the Organisation of Islamic Cooperation (OIC). Furthermore, Iran’s full membership in the Shanghai Cooperation Organisation (SCO) will facilitate expanded interaction and collaboration between the two countries. Bakhatwri stressed the importance of deeper people-to-people exchanges and cooperation in science and technology.
Source: https://www.nation.com.pk
