pakistan and iran partner to enhance trade, with us influence looming
Published on: May 3, 2024.
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ISLAMABAD — Iranian President Ebrahim Raisi concluded his visit to Pakistan this week, during which both countries agreed to strengthen trade ties and rebuild trust following border conflicts in January. However, experts believe that the influence of the United States will continue to overshadow this relationship, making it challenging for Islamabad to expand its business with Iran.
During his visit, President Raisi held meetings with Pakistan’s president, prime minister, and the chief ministers of Punjab and Sindh provinces. He also traveled to major cities like Lahore and Karachi to engage with key stakeholders.
The discussions between Pakistan and Iran focused on increasing bilateral trade and finding ways to enhance economic cooperation. Both sides expressed their commitment to overcoming challenges and enhancing connectivity between the two nations. This includes improving transportation infrastructure and streamlining customs procedures to facilitate smoother trade flows.
Iran is a significant market for Pakistan’s rice exports, particularly white broken rice. Pakistani rice exporters play a vital role in supplying high-quality rice to meet Iran’s demand. The new trade agreements aim to further strengthen these ties and boost rice exports from Pakistan to Iran.
However, the relationship between Pakistan and Iran is complicated by external factors, including pressure from the United States. Due to sanctions and geopolitical dynamics, Pakistan faces challenges in expanding its trade with Iran. This limits the potential growth of bilateral economic cooperation and trade between the two nations.
To overcome these obstacles, Pakistan is exploring alternative avenues to boost its rice exports. One such option is to target other markets for Pakistani rice, such as the Middle East and Africa. By diversifying its export destinations, Pakistan aims to reduce its dependency on the Iranian market and mitigate the impact of external pressures.
In conclusion, while Pakistan and Iran are keen to strengthen their economic ties, the influence of external factors, particularly the United States, continues to pose challenges. However, Pakistan is determined to explore new opportunities and expand its rice business by tapping into alternative markets. As the relationship between these two nations evolves, it remains to be seen how their trade and economic cooperation will develop in the coming years.
Source: [Asia Nikkei](https://asia.nikkei.com)
