Nazar Muhammad Ranjha, leading a delegation of Iranian businessmen from different sectors to visit Expo Pakistan 2017 (held from November 9 to 12 at Karachi Expo Center), made the announcement on the sidelines of the exhibit.

Elaborating on the measures and targets for the expansion of trade between Iran and Pakistan, the Pakistani counselor said: “We have already achieved some targets. Last year the trade between the two countries crossed the level of $1 billion and this year during April-September total trade between the two countries was $660 million which is a very good one. We hope that this will increase a lot.”

“The $5 billion bilateral target was set last year to bring this trade to level of $5 billion by 2021. We hope that within the next four years by 2021 when we have free trade agreement and all the things in place this target is achievable and even we can achieve more than this”, he added.

Referring to his government’s measures for facilitation of trade with Iran, the counselor said: “We have brought this delegation here and we have today meetings with Federation of Pakistan Chambers of Commerce and Karachi Chamber to have direct contact with the business community and to get the direct input what sort of facilitation is required by them [Iranian businessmen] and what kind of facilitation Pakistani business community can offer. So we can remove the problems and facilitate in any way.”

“And we have also pointed out many things to our Ministry of Commerce and also other trade authorities to provide different facilitations and this will be provided”, he added.

Pakistan sees Iran one of its main business partners

Elsewhere in his remarks, Nazar Muhammad said: “Pakistan considers Iran its one of the most important business partners and we are doing all of the best to improve the business relations.”

“I am thankful to you [Iranian delegation] and all of the delegations that are here on our invitation and we are very honored to have all you here and your participation is a very positive sign”, he noted.

“All the business community here have lot of demand that Iranian businessmen should come here”, the counselor highlighted.

“And as you know this is one of the biggest exhibitions that Pakistan has arranged. The last exhibition took place in 2015 and there are delegations from almost 50-55 countries from all over the world. The participation is very impressive. There are almost 900-1000 delegates that have come from foreign countries”, he further explained.

Absence of banking channel main barrier for trade

Nazar Muhammad mentioned absence of banking channel as the major barrier for bilateral trade and said: “There is no banking channel and we are trying our best to resume this banking channel, because without this it is not easy with the businessmen to conduct their trade. When there will be banking channel it will easily increase trade many folds.”

He went on to say: “Then the tariffs are very high. Pakistani business community says that tariffs are very high in Tehran, lots of certifications like certification from health ministry are required and they have to get those certifications.”

Mutual recognition agreement expected 

“And we are also now trying to sign an agreement which is called mutual recognition agreement.  It means that if there is some certification granted by Pakistani authorities to its businessmen it will be accepted by Iran and similarly if Iranian authorities have given some certifications it will be accepted by Pakistan. We are also negotiating this agreement during the meeting of free trade agreement. So this will also facilitate trade”, he further announced.

He also said: “We have already signed an agreement that is preferential trade agreement (PTA). It was signed in 2006 and under this agreement we have included 338 items from Iran and 309 items from Pakistan. So there are almost 650 items which can take place in preferential trade agreement which means tariffs will be reduced by both countries to each other but actually from last year we see from data there are only few number of items that are taking place.”

“In last six months we had only eight items that have gone to Iran and maximum is rice. Rice is almost 65 percent of our total export, similarly Iran’s exports are considered in only 10-15 items, so we have to look into expand it to diversify it”, he added.

“With this diversification we need to reduce tariff and non-tariff barriers and then trade increases not only in volume but also in diversification and it can be done”, he concluded

Many Pakistani delegations visit Iran last year 

Many different delegations from Pakistan including trade delegations have visited Iran during the past year period, Nazar Muhammad said, adding: “One delegation was from Lahore Chamber of Commerce, one from Rice Exporters Association of Pakistan (REP), and delegations from Pakistan-Iran Joint Chamber of Commerce that visited twice in the last year. Then the joint economic committee meeting was also held in April 2017 in Tehran.”

In the end, the Pakistani counselor said: “Once again thank you for coming here and also from our delegation from Iran. They are very much encouraged with this very much positive gesture and we hope that such delegations will be visiting both countries again.”