The Federal Board of Revenue (FBR) of Pakistan signed a memorandum of understanding (MoU) on the electronic exchange of data with the Islamic Republic of Iran Customs Administration (IRICA), reported thenews.com.pk.

Under the agreement, the two neighbors would trade documents on a real-time basis for exports of goods and advance information on goods and passengers at Taftan-Mirjaveh and other border stations.

FBR Acting Chairperson Nausheen Javaid Amjad said the accurate valuation of the imported goods will lead to the realization of greater revenues.

The implementation of the MoU would ensure the availability of advance information about values, descriptions, and quality of the goods to be imported into Pakistan from Iran and reduce costs on clearance of goods at the borders, she said.

Iran and Pakistan signed a preferential trade agreement in 2006 to boost exchanges but trade began to fall after 2008 because of Western sanctions on Tehran.

According to Pakistan Business Council (PBC), bilateral trade volume stood at $369 million as of 2018.

Pakistan exports paper, rice and stationery products to Iran while it imports liquefied petroleum gas, other mineral fuels and electrical energy from Iran.

The potential for trade between the two countries, however, is estimated at $10 billion.

Iran sells 1,000 megawatts of electricity to Pakistan and plans to increase this up to 3,000 megawatts to cover some 4,000 megawatts of a shortfall in the country.