Pakistan, Iran to build strategic trade ties
Iranian Foreign Minister Manouchehr Mottaki and Advisor to Pakistani Prime Minister on Finance Dr. Salman Shah made the commitment in their separate statements at the opening of 16th Pakistan-Iran Joint Economic Commission (JEC) in Islamabad.
The Iranian Foreign Minister, who is also co-chairman of the commission, stressed the need for laying solid foundations of expanding relations between the two countries.
Mottaki said trade between the two countries can be enhanced manifold by taking various measures including avoidance of double taxation and tariff reduction besides controlling smuggling and enhancing security cooperation.
He stressed the need for joint strategy to meet the challenges and enhance cooperation between the two countries in all fields to make it beneficial for the region and Muslim countries.
The Iranian minister said that his country is ready to provide one hundred megawatt of electricity to Gwadar, opening of a bank branch of its National Bank in Karachi, enhancing inter-bank relations, provision of one hundred and twenty million dollars worth of export guarantee, improving port, rail and road links, enhance relations in medicine and health projects, linking Iran with fiber optic network and customs operations improvement besides enhancing barter trade.
He expressed confidence that both will countries will agree in the current meeting on establishment of joint investment company, opening of bank branch in Karachi, finalizing cooperation in agriculture, settlement of tariff issues and security cooperation which will pave way for enhanced trade and economic ties between the two countries.
He said that the Iranian parliament has ratified Preferential Trade Agreement with Pakistan which will go a long way in expanding trade between the two countries. Pakistan has already ratified this agreement.
Committees on transportation and technical cooperation, trade, banking and customs, agriculture, industry, mining and coordination will discuss ways and means to finalize various agreements and MOUs to enhance cooperation between the two countries.
Salman Shah said both countries have great potential to expand their cooperation in various fields but it has not been realized so far.
He said it was agreed in the last commission meeting that both countries should enhance their trade up to one billion dollars annually but they are far away from their target and could make only four hundred million dollars during this year.
He said Iranian exports enjoy un-impediment access to the Pakistani market while Pakistani exporters are facing a number of difficulties to have access to Iranian market, which need to be addressed to achieve the trade target.
He proposed to simplify visa procedure, remove tariff barriers, improve attestation of documents and enhance fruit and rice export from Pakistan in order to ensure trade balance.
Salman Shah proposed establishment of a joint investment company between the two countries and pro-active role of private sector to give a boost to trade, economic and investment activities.
He also stressed for improving road, rail and sea links between the two countries to enhance trade.
He said Pakistan is placed at the confluence of three important geographic regions of Asia and as a member of ECO and SAARC it can provide a trade energy corridor to the international community for this region.
He said Pakistan will be happy to share this corridor with Iran.
He said according to ADB study, establishment of trade corridor would ensure three billion dollars in additional trade in the region.
For this purpose, Pakistan is building additional transport facilities which include road link between Peshawar and Termez in Uzbekistan and rail link between Chaman and Khushk in Turkmenistan.
Salman Shah proposed formation of a special committee to discuss cooperation between the private sectors of the two countries to enhance trade and investment links.