As agreed between the Presidents of Pakistan and Iran, the former will export wheat to Iran which will be value-added in Tehran. Trade will be maintained between the private sectors. This was informed by the visiting Deputy Minister Industry, Mines and Trade, Government of Iran and Chairman/Managing Director of Governmental Trading Corporation of Iran, Abbas Ghobadi, while addressing a meeting at Karachi Chamber of Commerce and Industry (KCCI) here on Wednesday. He said the indigenous wheat produced in Iran was fulfilling the demands and the factories of Iran had the capacity to process 25 million tonnes of wheat. Export of other commodities and products are also in consideration. Reciprocating the import of wheat, Iran and export energy to Pakistan, he said. Minister agreed to the proposals of President KCCI for joint ventures in agricultural sector and informed that efforts were underway to establish banking channel and execute commercial activities between the ports of Iman Khomeni, Bunder Abbas and Karachi. Besides that Iran was maintaining barter trade with India and China trade and likewise, through barter system the bilateral relations between Iran-Pakistan will be enhanced.
Iranian companies had good business relations with their US counterparts and there was a negative propaganda by the media about Iran-US relations. He emphasised for vibrant chamber-to-chamber interactions from both sides. Ghobadi, highlighted the historical relations of Iran and Pakistan and stated that the recent visit of President Ahmadinejad to meet his counterpart endorses the importance that the Iranian government attaches to Pakistan. He appreciated the role of Iran-Pakistan embassies and consulate generals in respective countries to uplift the trade and strengthen the economic cooperation as the missions were committed to implement the bilateral agreements existing between two countries. He said Iran had relations with 160 countries particularly economic relations with EU, UK, Canada and Central Asian States. He was of the view that both countries had energetic relations, however, economic relations need to be more fostered. He said security issues need to be addressed to increase trade. Iran already maintaining trade with US and EU was focusing on regional trade particularly with Pakistan and Central Asian republics. On the occasion, Mian Abrar Ahmad, President KCCI also asserted upon the dire need of establishing banking channels, port-to-port activities and customs clearance mechanism between Iran and Pakistan. He urged to develop regional trading block of ECO countries, particularly between Pakistan, Iran and Turkey. He said the biased policies of USA and West never allowed economic independence to Pakistan as allowed to other countries in the region. He articulated to build trading blocks with SAARC countries, Central Asian republics, particularly between Iran and Pakistan. He proposed trade between Pakistan and Iran should be permitted in local currencies instead of dollars and trade through railways should be regularised.
He was of the view that Pakistan has been severely discriminated by West and as an energy-hungry country we should not accept any dictation on Iran-Pakistan-India gas pipeline project which is the burning need for our country to overcome the energy crisis. He said, “Resolution passed in the US has proved that Baluchistan had been facing engineered situation of unrest having its roots abroad. The West never liked Gwadar port ever since it was established.” He opined, “Iran and Pakistan should jointly address this issue because Western interference in Baluchistan may create territorial security issues for both Muslim neighbouring countries.” He said the key solution for economic stability of Pakistan is regional trade with SAARC, ECO, ASEAN, GCC and Central Asian Countries. Pakistan was facing Non-Tariff Barriers to export in terms of restricted market access from USA and West, he added.
If market access is allowed, Pakistan can export worth $25 billion to USA alone, he maintained. He highlighted the existing tremendous potential for bilateral trade and identified possibilities of joint ventures in value-added agricultural sector and engineering sector. To enhance bilateral economic and commercial cooperation, he voiced to establish banking channel as the business transactions between Iran and Pakistan was routed through Asian Clearing Union which was more time-consuming than a normal letter of credit (LC), while opening a LC through Iran’s sister companies in Dubai also adds to cost. He appreciated Pak-Iran trade during last half decade which increased from $389 million to $1.2 billion and also emphasised to deepen the existing Preferential Trade Agreement (PTA) to be followed by Free Trade Agreement (FTA).
Chairman Businessmen Group Siraj Kassam Teli said the meeting of President Ahmedinejad with President Zardari was an important move to strengthen ties. He appreciated the efforts of Iranian Consul General in Karachi to enhance trade.
