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Speaking to ILNA, Peyman-Pak pointed to the details of Iran’s free trade agreement (FTA) with EAEU and said that 90% of the goods are in the green line and tariffs of these goods which are around 8,000 items is also zero and tariffs are levied on only 10% of the goods as usual.

He added that Russians levied more tariffs on Iranian goods, adding that in the past year different sections of the Ministry of Industry, Mine and Trade held several specialized meeting and the ministry tried to involve the private sector in this field.

Emphasizing the role playing of Iran in small industries of Eurasia, he said that Iran can take advantage of strong points of these countries like in iron ore, coke and basic goods.

Peyman-Pak went on to say that Eurasian member states import some $500b of goods annually and Iran has advantages in all fields which are required by Eurasian states, and on the whole a good market is ahead of Iranians and Iran can provided required raw materials with good prices from those countries in the sanctions era.

He noted that the free trade agreement has been signed by the ministries of EAEU states and it needs approval of their governments and parliaments and it will then come into effect in September 2023.

Meanwhile deputy head of Iran-Russia Joint Chamber of Commerce Mr. Kambiz Mirkarimi pointed to the agreement between Iran and EAEU and said that Iran can compete in the Eurasian markets because tariffs for 90% of goods are almost zero and it reduces the cost of trade for Iranians.

He went on to say that it is expected the trade volume between Iran and Russia to reach $5b by the yearend (mid-March) and this is possible the trade volume to hit $10b in 3 to 4 years provided that there will be no disrupt in the current trend of trade between the two states.

He then pointed to the necessity of developing infrastructures of transportation in Iran and said that if Iran wants to broaden trade in the region, it should provide facilities for developing transportation and it needs more investment in this field.

Mirkarimi added that in 2019, the trade volume between Iran and Russia was around $270m but with gradual tariff, Iran experienced 61% growth in exports in 2020 and it reached $473m and even the pandemic was unable to stop this growth and expressed hope by the year end a new record would be registered in trade between Iran and Russia.

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Qamar hoped that free trade will increase and taking the volume of bilateral trade to $4 billion after the two countries sign the FTA, adding that the current trade volume does not commensurate with its true potential.

He added that an agreement will be signed for promoting transit trade in the next three months, through which free economic zones will be established in the two countries.

The commerce minister was talking to media persons along with Iranian Minister for Roads and Urban Development Rostam Ghasemi after the 21st Session of Pak-Iran Joint Economic Commission (JEC) which was held here from August 16 to 18. Ghasemi along with a delegation of 57 dignitaries participated in the 21st Session of Pak-Iran JEC.

According to the details, APP’s Managing Director Akhtar Munir and the Iranian Ambassador to Pakistan Syed Mohammad Ali Hosseini signed an agreement related to media co-operation.

The second agreement was on maritime cooperation which was signed by the representative of the Ministry of Defense from Pakistan and the Ministry of Maritime from Iran.

The third agreement was signed for the promotion of tourism, which was signed by representatives of the respective ministries of the two countries.

The fourth agreement was signed by the National museums of the two countries for the promotion of mutual cooperation.

Naveed Qamar said that under the FTA, both sides would negotiate to reduce tariffs and exchange trade lists in different sectors.

He informed that for the promotion of transit trade, it had been decided to establish six border markets, in which, the work on the establishment of three had already been started while work on the other three will also start soon.

The minister said that it was time for final agreements and practical work for which both the countries had agreed and added that national airlines of the two countries had also expressed their willingness to promote mutual cooperation.

“Since its inception in 1984, we are now holding the 21st Session of the JEC, which is a clear indication of the endeavors of both the countries to sustain and foster our economic relations”, he added, recalling that the JEC provides an institutional framework for a regular review of economic relations and identification of new opportunities for mutual cooperation.

Syed Naveed Qamar said that Pakistan placed Iran at a very high level of importance and appreciated its direction towards market-based reforms. “Pakistan looked to the Iranian market and Iranian investors as it offered a very friendly trade and investment environment in Special Economic and Industrials Zones under CPEC,” he added.

“I request the two sides to implement the Preferential Trade Agreement (PTA) in letter and spirit, and remove Tariff and Non-Tariff Barriers in order to boost trade volume between both countries” he said.

He emphasized that the five Years Strategic Trade Partnership Plan needed to be renewed for next five years (2022-2027) and both the sides were working in that regard in this 21st Session of JEC.

Talking to media persons, Iranian Minister for Roads and Urban Development, Rustam Ghasemi said that many fruitful discussions regarding many fields including energy and trade had been held between the two parties.

He pointed out that transport, trade and energy were very important for the economies of the two countries.

He informed that four different agreements that were signed included agreements on maritime cooperation, media, tourism and the national museums.

The first agreement for media cooperation was signed between Pakistan’s National News Agency, the Associated Press of Pakistan (APP), and Iran’s national news Agency, IRNA.

Meanwhile, National Food Security Minister Tariq Bashir Cheema said that Pakistan and Iran will soon begin bartering, under which Pakistan will get apples from Iran by sending them oranges.

During a meeting with Iranian Deputy Minister for Agriculture, Abbas Askarzada in Islamabad on Thursday, he said that the two countries will soon exchange lists of items which can be traded on a barter basis.

Cheema called for removing obstacles in bilateral trade between the countries, especially in the field of agriculture. “Relations between Pakistan and Iran are entering into a new era based on mutual benefits, and cooperation in the agriculture sector could ensure food security in the two countries,” he said.

The Iranian deputy minister agreed to the proposal and said that Iran is ready to increase cooperation with Pakistan in the agricultural sector. “Iran will meet the agricultural requirements of Pakistan and introduce its agricultural products in Iran,” he stated.

The two sides also discussed trading fertilizers, particularly urea, to meet local demand.

Meanwhile Iranian government has reportedly shared draft of Memorandum of Understanding (MoU) for export of 5000MW electricity to Pakistan.

The MoU is in continuation of the understanding reached during the visit of Minister for Power, Khurram Dastgir Khan to Tehran regarding export of electricity.

Earlier in a meeting with Iranian Minister for Roads and Urban Development Ghasemi here, Foreign Minister Bilawal Bhutto Zardari underlined the need to fully utilize existing potential between Pakistan and Iran in energy, air links, and connectivity.

Bilawal expressed the hope that opening of new border crossing-points and establishment of border markets would improve livelihood and facilitate movement of people and goods.

The foreign minister expressed gratitude for Iran’s steadfast support on the Kashmir cause, particularly by the Iranian Supreme Leader.

He also highlighted fraternal ties between the two countries, rooted in shared history and cultural and linguistic affinities. He reaffirmed commitment to further strengthen bilateral cooperation in all areas of mutual interest.

Rostam Ghasemi, while thanking the foreign minister for receiving the delegation, remarked that the 21st session of the Pakistan-Iran Joint Economic Commission offers new avenues in expanding bilateral ties.

He concurred with the foreign minister on the need for fully exploring all opportunities and expressed readiness to work together for the mutual benefit of both the countries.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Iranian and Pakistani economic activists in a webinar held jointly by Chambers of Commerce of Tehran and Lahore explored ways of expanding economic cooperation, and both sides announced readiness for implementing the free trade agreement signed by both countries.

Speaking in the webinar, Pakistan Ambassador Rahim Hayat Qureshi said both countries are striving to implement the free trade agreement, and pointed to the opening of the joint border market between both countries this week and stipulated that governments of both countries are trying to launch more joint border markets.

He pointed to the solutions of head of Tehran Chamber of Commerce regarding establishment of a barter trade system between both countries and defended the mechanism and noted that chambers of commerce of both countries can take the helm of this mechanism and devise operational solutions.

He also pointed to the launch of preferential tariff agreements between Iran and Pakistan, saying that the agreement should be fully carried out by both sides. He added that both governments are currently talking on the free trade agreement and it is on the verge of being finalized.

Meanwhile addressing the webinar, Head of Tehran Chamber of Commerce, Industry, Mine and Agriculture (TCCIMA) Masoud Khansari emphasized efforts of chambers of commerce of both countries for launching the barter trade mechanism and said achieving the free trade agreement is a long stride towards improving the economic relations between Iran and Pakistan.

He also announced the formation of a joint workgroup between private sectors of both states for identifying the obstacles in way of trade between both states and resolving  them, and noted that by creating opportunities for joint talks and exchange of views and solutions by the private sectors, achievement of 3-billion-dollar trade will be possible.

Khansari added that strengthening and equipping the infrastructure for the connection of both countries and joint investments for launching industrial parks in the areas near borders are of the solutions for developing bilateral economic relations.

He also pointed to reopening of two border markets in recent days, and said lack of bilateral banking and financial interactions has overshadowed the trade between both states, saying that to resolve this problem and with reliance on barter trade, both countries can expand their economic relation beyond what is now.

Khansari also said using national currencies in trade and establishing joint banks are of the solutions that Iran’s private sector and chamber of commerce offer which can solve a major part of problem in bilateral trade.

He also called for bolstering joint cooperation in developing Chabahar Port development, noting that connecting it to Gwadar Port of Pakistan is an essential step for improving economic relations of both countries. He then pointed to the preferential tariff agreement signed between both countries and said it is now time to implement it and even move further.

Meanwhile Vice-President of Lahore Chamber of Commerce and Industry Mr. Shamsul Islam Khan, for his part, termed smuggling is the major woe in way of trade between both states and noted that both countries can overcome the woe of smuggling by launching the joint border markets.

He also called for establishing joint industrial towns in joint border areas and said it is very crucial in boosting job creation for citizens of both countries and expansion of trade exchanges.

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