These issues came under discussion during the 8th meeting of Pak-Iran Joint Trade Committee which reviewed progress on issues relating to bilateral trade. The Pakistani team was led by Prime Minister’s Adviser on Commerce, Textile, Industries and Production and Investment Abdul Razak Dawood whereas Iranian delegation was led by Reza Rahmani, Minister for Industries, Mine and Trade.

IRAN NEWS ECONOMIC DESK

Abdul Razak Dawood urged Iran to remove non-trade barriers to realize actual potential of bilateral trade as present level of trade between the two countries is far from actual potential. The Iranian Trade Minister appreciated the Adviser’s stance on the bilateral trade issues and agreed to accelerate efforts to enhance trade with Pakistan in order to increase the economic well-being of people of both countries.

He further added that being brotherly and neighboring countries the two countries should further strengthen existing trade ties for the well-being of ‘our peoples’. He resolved to address all the issues which are hampering bilateral trade and assured to create win-win situation for both the countries.

The Adviser informed the delegation that Pakistan intends to increase the bilateral trade and economic ties. He underlined the importance of issues, pertaining to bilateral trade, which were discussed during Prime Minister’s last visit to Iran and expected positive response from Iranian side.

These issues include removing barriers which have made Pak-Iran PTA (signed in 2006) ineffective and working out barter trade mechanism in order to increase bilateral trade in agricultural/food products and pharmaceuticals.

Talking about barter trade, the Adviser asserted that to start barter trade, at the first instance both the countries should select few items with a competitive advantage. In this regard, Pakistan can enhance export of wheat, sugar, rice and fruit to Iran.

Iranian side acknowledged the fact that Pak-Iran trade relations are not matching the real potential. They emphasized the requirement of the constitution of a committee for barter trade. Both the countries have huge potential in agriculture which is not yet exploited, they highlighted. Iran showed interest in import of 0.5 million tons of rice from Pakistan and asked Pakistani side to devise necessary mechanism for early shipment.

The Iranian delegation extended its full support to work on removal of potential bottlenecks to increase trade and jointly develop a way forward. Further, they also requested the Pakistani government to open more border points between Pakistan and Iran mainly at Ramdan, Pishin and Korak, which will further enhance bilateral trade.

The Advisor also suggested removing various forms of taxation such as road and load taxes on vehicles/trucks which are crossing the borders to facilitate bilateral trade.

Meanwhile Iranian delegation headed by Minister for Industry, Mines and Trade Thursday expressed its resolve for resumption of ferry service and readiness for the signing of the related agreements.

Talking to Minister for Maritime Affairs, Ali Zaidi, the delegation comprising Deputy Minister for Agriculture Yazdan Seif and Iranian Ambassador to Pakistan Mehdi Honardoost, showed the resolve for resumption of the ferry service saying the rail and road alone was not sufficient for the transit of trade potential present between the two countries and the sea route is the only feasible route as far as the economical transit is concerned.

Iranian minister said sea routes should be established and trade barriers should be removed for maximum benefit of the both countries. The trade potential between the two countries is enormous and has an unquestionable capability for the improvement of ties. Pakistani products are Iran’s priority and we intend to cater our needs from Pakistan, said Reza Rahmani.

Currently, the major trade items are edible products and medicine, the delegation emphasized on the diversification of the trade goods. Reza Rahmani conveyed that the Supreme Leader foresee long term relations between Pakistan and Iran. The Iranian delegation showed an interest in the resolution of all issues tabled at the meeting. Both sides agreed upon the exchange of the lists comprising of the trade goods.

Welcoming the proposals by the delegation, Ali Zaidi also raised the issue of visa difficulties for Pakistani Seafarers and asked for the resolution of this issue as Pakistan’s shipping industry is experiencing a revival.

Minister for Maritime Affairs Ali Zaidi acknowledged the hospitality of Iran during the Prime Minister Imran Khan’s visit to Iran. Especially the reverence for Allama Iqbal as Iqbal-e-Lahori and the commonality of culture were appreciated by the participants from the both sides.

The minister reiterated on sorting out the contentious issues and strengthening the ties through increased bilateral trade and track three diplomacy. He also reemphasized the Pakistani stance over Israeli aggression on Golan Heights and illegal settlements, as was done by the Prime Minister during his visit to Iran.