Iranian envoy suggests border markets to boost trade

KARACHI:

During a high-profile visit to the headquarters of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Iran’s Ambassador to Pakistan, Reza Amiri Moghadam, put forward a proposal to establish border markets between the two nations, aiming to boost trade ties, according to a press statement issued Friday.

Highlighting Iran’s position as one of the world’s leading producers of petrochemicals and energy resources, Ambassador Moghadam highlighted its potential to play a critical role in helping Pakistan address its energy shortages through reliable and cost-effective supplies. Given Pakistan’s dependence on imported oil and energy sources, the ambassador sees Iran as an important partner in bridging this gap.

Ambassador Moghadam also acknowledged the popularity of Pakistani rice and textiles in Iran, citing the strong cultural and religious ties shared by the two countries. Expressing his desire to enhance people-to-people, business-to-business and chamber-to-house contacts with Pakistan. “We need to increase business tourism between the two countries and the Iranian embassy is willing to facilitate the Pakistani business community in terms of visas and participation in trade fairs and exhibitions in Iran,” he said.

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FPCCI President Irfan Iqbal Sheikh welcomed the proposal, stressing that boosting trade with Iran could be a strategic solution to Pakistan’s chronic trade deficit. Given Iran’s proximity, Sheikh highlighted the potential for price-competitive exports due to minimal shipping and logistics costs via the land route.

However, Sheikh identified the lack of banking channels as a major obstacle in increasing Pakistani exports to Iran. He suggested that an efficient and functional currency exchange mechanism could help overcome this challenge.

FPCCI Vice President Shaukat Omerson echoed the sentiment, noting that various products and services from Pakistan such as rice, fruits, vegetables, value-added textiles, sports goods, surgical instruments, pharmaceuticals and IT services have significant potential in Iranian market. He pointed out that the current bilateral trade of $2.4 billion, while significant, falls below potential when considering the combined population of over 300 million for the two countries.

Published in The Express Tribune, November 25^u2023.

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