KARACHI – Iran will raise the issue of “unofficial trade” with Pakistan, which has expanded for the last few years, in the forth coming session of Pak-Iran Joint Ministerial Commission (JTC).
Iranian Commerce Minister, with other concerned officials, businessmen and importers/exporters would reach Islamabad by the second week of next month to attend the JTC, scheduled to be held in Pakistan on January 12-13, 2011, sources told Pakistan Today.
To prepare the workings of the session, both the Iranian Commercial Consular in Pakistan and Chief Executive Trade Development Authority of Pakistan (TDAP) would hold a meeting on Wednesday.
According to sources, Tehran, which has raised the issue of unofficial trade, especially on the import of fruits from Pakistan through open containers, would once again make the said issue an agenda of the session as the agreed procedure for export of fresh fruits to Iran was not being followed.
Besides, the two countries, sources said, would also check the implementation status of the agreed points in the previous session of JTC including the exchange of lists of new exportable items for inclusion in a Preferential Trade Agreement (PTA).
In the previous session of JTC, both sides had agreed on expansion of PTA, implemented since September 2006, wherein concession in import duties was granted on about 647 items by both sides on reciprocal basis. Both countries had signed a memorandum of understanding (MoUs) on border trade, quarantine and banking, using national currencies in exchanging trade and marketing information.
The Iranian side was also likely to raise the non- acceptance of LCs of Iranian banks by the State Bank of Pakistan which was also affecting the bilateral trade. Talking about the unofficial trade issue, sources said that Pakistani mission in Iran has earlier warned the Ministry of Commerce and the Department of Plant Protection about possible restriction on exports of Kinnow and mango through the land route by Iran.
Despite the warnings that Iran would not allow any shipments carrying fresh fruits without specifications of truck and refrigerated containers from Pakistan to Iran, the unofficial export of the same were going on and following an increasing trend.
Talking to Pakistan Today, former chairman of All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association Abdul Waheed said that if the Iranian concerns were not addressed, the country would lose a major chunk of fruit business in the foreign country’s market which was regarded as a valuable market in terms of prompt payment for the imported items.
Pakistan’s export to Iran has slightly increased during the current financial year. The bilateral trade between Pakistan and Iran was registered at $1,251.37 million in 2008-2009.
