TEHRAN - Iranian Minister of Industry, Mining and Trade Mohammad Atabak and Pakistan’s Federal Minister for Commerce Jam Kamal Khan have discussed trade ties between the two countries, with both agreeing that economic exchanges should be promoted further.

The two ministers met in Pakistan’s capital Islamabad on Wednesday on the sidelines of the 23rd meeting of the Council of Heads of Government of the Shanghai Cooperation Organization (SCO).

Atabak told IRNA that he and the Pakistani minister discussed trade ties between the two countries and agreed to hold further talks in order to explore ways to remove obstacles to the promotion of bilateral trade.

“Considering the historical and cultural commonalities of the two countries, we should take advantage of the strong potentials to expand trade exchanges between Iran and Pakistan,” Atabak said.

The Iranian minister also said that he invited Kamal Khan to visit the Islamic Republic.

According to the official, the necessary measures will be taken to prepare an agreement to be signed between the two countries during the visit of the Pakistani minister to Iran.

He stated that the current amount of trade exchanges between the two countries is not acceptable from the point of view of both Iran and Pakistan, and considering the strong relations and common links of the two countries, the two sides are confident that they will be able to increase the volume of trade exchanges several times.

The Pakistani minister spoke with IRNA as well. He described his talks with the Iranian minister as constructive, and said that visiting Iran is on agenda of his plans.

“We had good talks with my Iranian counterpart and reached constructive agreements, and we believe that there are many remaining tasks that the two countries are determined to pursue,” he said.

As announced by the Islamic Republic of Iran Customs Administration (IRICA), the value of non-oil trade between Iran and Pakistan rose 10 percent in the first five months of the current Iranian calendar year (March 20-August 21), as compared to the same period of time in the past year.

The two countries’ bilateral trade stood at 1.906 million tons worth $1.128 billion in the mentioned five-month times, indicating also two percent growth in weight, year on year.

Pakistan was the fourth top trade partner of Iran among the Islamic Republic’s neighbors in the first five months of the present year.

In mid-July, the 11th meeting of the Joint Border Trade Committee of Iran and Pakistan opened in the southeastern Iranian city of Zahedan, where the two sides pursue the increase of bilateral trade to $10 billion per annum.

Pakistan's Ambassador to Iran Muhammad Mudassir Tipu, who attends the meeting online, announced that Iranian and Pakistani delegations are scheduled to discuss the mechanism to increase mutual trade.

The Islamic Republic of Iran's consul general in Quetta, Pakistan's consul general in Zahedan, and other senior officials of Sistan-Baluchestan province took part in the meeting.

Such joint meetings are held to pave the way for reviewing obstacles, removing barriers, and developing trade and economic relations between the two friendly and neighboring countries.

The two sides make the necessary coordination to help improve trade and economic ties, exchange economic delegations, organize joint exhibitions, attract bilateral investment, and establish joint industrial centers and retail markets.

The head of the Pakistani delegation to the 11th meeting of the Joint Border Trade Committee said that Islamabad strongly supports the development of joint markets and investment, which can increase the level of trust between the two nations.

Irfan Javed added that Pakistan also calls for cooperation in the field of transportation because it can affect the livelihood of the people who are living in border regions.

The deputy coordinator of economic affairs of Sistan-Baluchestan governor’s office said that Iran is keen on expanding trade exchanges with Pakistan.

Davoud Shahraki added that the relationship between the two countries is historic and long-standing.

On June 30, Pakistan’s Ambassador to Iran Muhammad Mudassir Tipu said that facilities at two border points between the two countries have been beefed up as part of efforts to facilitate trade and trips by passengers.

“Absolutely delighted to share that to facilitate Zaireen, business community and promote bilateral trade- immigration facilities at Taftan and Gabd border have been substantially beefed up. Now almost 4-6,000 passengers can cross both points everyday”, the ambassador said on his X account .

He also said in his post on X, formerly Twitter, that relations between Iran and Pakistan “see promising future”.

The value of Iran’s non-oil exports to Pakistan in the first four months of 2024 has reached $360 million, showing an 18 percent growth compared to last year’s corresponding period.

The Pakistani Ministry of Commerce’s statistics show that Pakistan has imported $360 million in products from Iran in the first four months of 2024, 18 percent higher than in January-April 2023.

Pakistan’s import of products from Iran in April 2024 has hit $73.2 million, registering a 30 percent growth compared to the same month last year.

The value of Iran’s exports to Pakistan totaled $944 million in 2023, indicating a 13 percent rise compared to a year earlier.

In a meeting between the Head of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) Samad Hassanzadeh and Pakistani Ambassador to Iran Muhammad Mudassir Tipu in Tehran in late June, the officials stressed the need for Iran and Pakistan to exercise barter trade and free trade to materialize a $10 billion trade target.

Noting that Tehran and Islamabad can cooperate in different areas including pharmaceuticals, petrochemicals, energy, auto parts, techno-engineering services, and electronics, he said that the ground is also prepared for cooperation on health tourism.

Hassanzadeh further stressed that an agreement for activating a joint trade council between the two neighboring countries is still in place.

The Iran Chamber of Commerce president said that the two countries have had many talks on the launch of a barter trade system while no practical step has been taken.

He called on the Pakistani government to ease visa requirements for Iranian businesspeople.

The Pakistani ambassador, for his part, referred to his country’s agreement with the late Iranian president Ebrahim Raisi for increasing bilateral trade to $10 billion, adding that Islamabad continues to pursue this agreement.

The Pakistani government has decided for the joint border customs to work round the clock, the ambassador said, adding that it would be very effective if Iran also decides to do so.

He noted that the trade balance is one of the main obstacles on the way of trade between the two neighbors, as he said Iran’s exports to Pakistan stand at $1.6 billion while Pakistan’s exports to Iran are so insignificant.

He believed that the exercise of free trade rests upon win-win connections.

The ambassador added that if the Iran Chamber of Commerce recommends businesspersons to the embassy, there would be no problem with the issuance of visas for traders.

EF/MA

Photo: Iranian Industry Minister Mohammad Atabak (C) and Pakistan’s Federal Minister for Commerce Jam Kamal Khan (L) talk to IRNA in Islamabad on Wednesday, October 16.