iranian envoy suggests declaring chabahar and gwadar as sister ports
Published on: March 15, 2024.
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Iran’s Ambassador Suggests Declaring Gwadar and Chabahar as Sister Ports
In a recent meeting with the Islamabad Chamber of Commerce and Industry (ICCI), Ambassador of Iran to Pakistan Dr Reza Amiri Moghadam proposed that Gwadar and Chabahar should be designated as sister ports. The ambassador highlighted the importance of maritime connections between the two countries, particularly Karachi and Gwadar port in Pakistan and Chabahar and Bandar Abbas ports in Iran. Dr Moghadam emphasized that these ports are crucial for both countries to establish links with regional and global trade.
During the meeting, Dr Moghadam also discussed the need for stronger air, maritime, and sea connections between Pakistan and Iran to strengthen their economic relations. He mentioned that Iran already has banking channels with Turkey, Bahrain, and Iraq, and Pakistan could adopt a similar procedure. The ambassador expressed optimism about finalizing the bilateral Free Trade Agreement (FTA) during the upcoming visit of President of Iran Ebrahim Raisi to Pakistan. The visit is expected to result in several economic and trade agreements between the two countries, further promoting their bilateral business.
Currently, the bilateral trade volume between Pakistan and Iran stands at $2.5 billion, showing an 11% increase in the past 11 months. Dr Moghadam stated that with the FTA and other bilateral agreements, the mutual trade between the two countries could potentially double in the coming years, reaching $5 billion. He also acknowledged the importance of the Pakistan-Iran gas pipeline, which has significantly benefited Pakistan’s domestic and industrial sectors.
Speaking about trade integration, the ambassador mentioned Iran’s existing trade relationships in the energy and gas sector with Turkey, Turkmenistan, and Azerbaijan. He encouraged Pakistan to follow a similar approach. He highlighted the prospects for economic and trade integration through the Pakistan-China trade corridor and Belt and Road Initiative (BRI) projects. Dr Moghadam believed that both countries can position themselves in the global trade market by connecting to the North-South and East-West trade corridors and accessing markets in Central Asia and Europe.
The ambassador stressed that Pakistan and Iran can meet 70% of each other’s needs through mutual trade. He also emphasized Iran’s import of halal meat, suggesting that Pakistan can contribute significantly to this sector. To facilitate business between the two countries, Iran has introduced electronic visas for Pakistani businessmen, streamlining the visa application process. Dr Moghadam called for enhanced relations between the business communities of Pakistan and Iran, particularly between ICCI and Tehran Chamber of Commerce and Industry.
ICCI President Ahsan Zafar Bakhtwari, while addressing the forum, highlighted that Pakistan and Iran aim to increase their annual trade volume from $2.5 billion to $5 billion, as outlined in their five-year trade cooperation plan for 2023-2028. Bakhtwari mentioned that both countries are active members of various regional and international organizations such as the Economic Cooperation Organization (ECO) and the Organization of Islamic Cooperation (OIC). Additionally, Iran’s forthcoming full membership in the Shanghai Cooperation Organization (SCO) will facilitate expanded interaction and collaboration between the two nations.
In conclusion, fostering deeper people-to-people exchanges, cooperation in science and technology, and infrastructure improvements are crucial for facilitating increased barter trade between Pakistan and Iran. It is necessary to address challenges related to high tariffs and the absence of credible payment mechanisms from the Iranian side to further strengthen trade between the two countries.
Source: The News
