Pakistan, Iran to Increase Trade and Economic Ties

May 29, 1999 - 0:0
TEHRAN Pakistan and Iran Thursday agreed to boost bilateral trade and enhance cooperation in various fields of economic activity, officials said. Finance Minister Ishaq Dar and Iranian Minister for Roads and Transport Mahmud Hojjati signed two agreements following a two-day meeting of the Pakistan-Iran joint ministerial commission in Pakistan. Hojjati told reporters the agreements would open a "new chapter" in economic and social relations between the two countries.

Dar said bilateral ties between the two Islamic nations would transform into "deep trade and economic relations." He said the existing annual trade volume of 150 million dollars between Pakistan and Iran could now be doubled in the next two years. Earlier reports said that the first session of Irano-Pakistan Economic Joint Commission, headed by Iran's Minister of Road and Transport, Mahmoud Hojjati and Pakistan's Economic and Finance Minister, Ishaq Dar, convened Wednesday in Islamabad. The Iranian minister, Mahmoud Hojjati told the participants that "the Islamic Republic of Iran was all set to export buses, combiners, coal, raw textile material and electricity in order to supply the residents of the western fringe of Pakistan with the bounteous commodity." He added that Pakistan would in return export rice and finished textile products to Iran. The volume of exports between two countries would initially stand at $500 million.

"The geographical location of the two countries at the east-west crossroad could avail excellent opportunity in helping Pakistan link itself to Europe through Turkey and Central Asian republics through Mashhad, Khorassan province of Iran," said Hojjati. The Iranian minister said that Iran is on the threshold of laying a 220 kilometers of the railroad track from Kerman towards Zahedan as a part of the 550-kilometer Kerman-Zahedan railroad route.

He said that this route would link Pakistan to europe through Turkey. "While Sarakhs-Tajan railroad link and roads would provide Pakistan a bridge to the Central Asian republics," said Hojjati. The Pakistani minister, Ishaq Dar stressed the need to further explore grounds for bilateral cooperation in the economic, trade and technical areas. The Pakistani minister believed that the joint commission presented an ideal opportunity for the scrutiny of current bilateral economic relations and defining new clear-cut policies for future economic relation.

Ishaq Dar wanted to see a boost in the export of rice, oil seed, medicine, chemical items and tents to the Islamic Republic of Iran. He welcomed the idea of export of electricity to the border residents of Pakistan. The minister also suggested the setting up of border markets.