ISLAMABAD
Pakistan and Iran have agreed on barter trade-in rice, construction of border markets, movement of Pakistani trucks under TIR and customs cooperation.
Adviser to the PM on Commerce, Trade and Investment, Abdul Razak Dawood announced this on Sunday in a tweet.
He said, “These measures will not only increase our exports, but they will also enhance trade and connectivity within the region.”
Dawood expressed his happiness over the development.
Meanwhile, a statement issued from the Ministry of Commerce said that Abdul Razak Dawood held a meeting with Minister of Road and Urban Development of Iran, Rostam Ghasemi on the sidelines of the 9th session of Pakistan-Iran Joint Trade Commission (JTC) in Tehran on Sunday. The two sides discussed ways to promote uninterrupted flow of trade and transportation through the land borders and road connectivity between Pakistan and Iran.
The advisor called for mutual reduction of taxes and duties on road transportation and implementation, in letter and spirit, of existing bilateral agreements to facilitate vehicular movement on both sides.
Both sides expressed satisfaction on successful operationalisation of TIR shipments from Pakistan to Turkey and Azerbaijan through Iran. They agreed to hold the next session of Pak-Iran Joint Committee on International Road Transport at an early date to improve the procedures related to TIR shipments.
The advisor informed the minister about the government of Pakistan’s focus on strengthening economic ties with Iran, with particular emphasis on trade and connectivity.
The advisor also held a meeting with Minister of Agriculture of Iran, Dr Seyed Javad Sadati Nejad on the sidelines of the 9th session of Pakistan-Iran Joint Trade Committee (JTC) in Tehran on Sunday. The two sides discussed a wide range of issues to promote agricultural cooperation between Pakistan and Iran.
The advisor apprised the minister about the government of Pakistan’s renewed focus on promoting agricultural production, research and innovation. He was also keen to promote trade with Iran in agricultural products, in line with Prime Minister Imran Khan’s vision to strengthen regional trade and connectivity.
The advisor informed the minister about recent policy measures by Pakistan to reduce barriers in bilateral agricultural trade and emphasised the importance of mutual reduction of tariff and non-tariff barriers.
Both sides called upon the need for strengthening regular exchanges and sharing of best practices between the two brotherly countries.
A day earlier on Saturday, Pakistan and Iran resolved to raise the volume of bilateral trade between the two countries to the $5 billion mark. Pakistan and Iran have agreed to revive talks on a free trade agreement (FTA).
The two countries had finalised the draft of the FTA in December 2017 after several rounds of talks but reinstatement of sanctions on Iran by the former US administration in May 2018 saw the agreement being put on the back burner. During the meeting on Saturday, the two sides also discussed barter trade, transportation, border markets, exhibitions, and private sector investments.
Bilateral trade between Tehran and Islamabad has come down from $1.5 billion before the pandemic to less than $1 billion. The two countries had signed a Preferential Trade Agreement (PTA) in 2006, which experts say failed to push the trade balance beyond $1.5 billion, with US sanctions playing spoilsport.
