TEHRAN - Iran and Pakistan signed a Memorandum of Understanding (MOU) on Monday to facilitate bilateral trade between the two countries.

The MOU was signed by Head of Iran’s Trade Promotion Organization (TPO) Alireza Peyman-Pak and Head of the Trade Development Authority of Pakistan (TDAP) Muhammad Zubair Motiwala, the TPO portal reported.

Based on the MOU, which was signed on the sidelines of Iran’s Exclusive Exhibition in Karachi, the parties pledged to exchange business information, support each other’s private sectors, and provide the conditions and context for the presence of their trade delegations in the other country.

It was also agreed that both sides would take all the necessary measures to facilitate holding exhibitions in the opposite country, whenever required.

Speaking in the signing ceremony, Peyman-Pak said that signing this MOU was indicative of the two sides’ determination for removing the obstacles in the way of bilateral trade and prepare the ground for the businesspersons of both sides to bolster cooperation.

He considered the holding of exclusive exhibitions, exchanging trade delegations, and investment in joint production units as positive steps for knowing the capacities and needs of the two countries and expressed hope that such events would continue.

The TPO head further mentioned some obstacles and infrastructural problems that are hindering the two countries' mutual trade, including lack of banking relations, problems related to sea transportation and logistics, and tariff-related issues, saying that the Iranian government is willing to resolve such problems in collaboration with the Pakistani government.

Motiwala, for his part, said that the signed MOU is regarded as a major step to enhance bilateral trade to reach the target of five billion dollars annually.

 “Made in Iran” exhibition opens in Karachi

The exclusive exhibition of Iranian products dubbed “Made in Iran” was opened in Karachi the capital of Sindh province in southern Pakistan, on Monday, aiming to showcase the capabilities of Iranian producers and to introduce Iran-made products to Pakistani consumers.

The exhibit was opened in a ceremony attended by senior officials from both sides including TPO Head Alireza Peyman-Pak, Consul General of Iran in Karachi Hassan Noorian, Governor of Sindh Kamran Tesori, and some other Iranian and Pakistani business officials.

The exhibit comes as the Islamic Republic of Iran has recently removed the ban on the imports of Pakistani products listed under the preferential trade agreement between the two countries.

Holding this exclusive exhibition is an effective step for increasing cooperation and coordination between the business people on both sides.

Mohammed Reza Barahoui, the director of Iran's exclusive exhibition, said on the sidelines of the opening ceremony in an interview with an Iranian media outlet, that about 50 companies from different Iranian provinces operating in the fields of industrial and commercial services, including plastic and polymer materials, food industry, steel industry, copper, services, power plants, construction, turbines, textile machinery, and the construction industry are taking part in the three-day event.

The exhibition has been organized by TPO with the aim of increasing the trade balance between Iran and Pakistan, Barahoui said, adding, "The officials of the two countries are looking for establishing a constructive trade relationship and negotiations will be held on conducting transactions using a barter trade mechanism."

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Photo: TPO Head Alireza Peyman-Pak (L) and TDAP President Muhammad Zubair Motiwala sign MOU documents in Karachi on Monday.