Iranian Commerce Minister Mahdi Ghanzanfari is in the federal capital to explore avenues to further increase bilateral trade which, according to Pakistani officials, is much lower than potential. "Iran's imports are more than $150 billion, whereas imports are $50 billion, and we are looking to enhance trade relations with Asian countries, instead of the West," said Mahdi while addressing business community of Islamabad.
Pakistan is importing electricity from Iran for Balochistan and Gwadar. It has also signed a gas pipeline deal with Iran, which the US is not supporting. Under PTA, Pakistan and Iran have granted tariff concessions on more than 600 items. Pakistan's major exports to Iran are rice, fruit, vegetables, cotton and synthetic fabric. Imports mainly comprise petroleum and petroleum products.
The 6th meeting of Pak-Iran Joint Trade Commission (JTC) commenced in Islamabad on Wednesday in the Ministry of Commerce. Amin Fahim, Minister for Commerce, and his Iranian counterpart Mahdi Ghazanfari jointly co-chaired the opening session. In his opening statement, Amin said that there is enormous potential for increase in bilateral trade for which it is essential to deepen the existing Preferential Trade Agreement (PTA) by granting mutually agreed tariff concessions on products of export interest to each other.
JTC provides a useful institutional arrangement to discuss ways and means for further improving bilateral relations between the two countries, and to remove the bottlenecks that may impede the growth of bilateral trade. In the last half decade, bilateral trade has risen from $389 million to $1.2 billion. Iranian Commerce Minister urged further cementing of ties between the two countries.
Addressing a gathering of businessmen at the Islamabad Chamber of Commerce and Industry (ICCI), Iranian Minister said that western media is engaged in negative propaganda against Iran, but the countries which were in favour of sanctioning Iran are enhancing trade with Iran. Despite this propaganda, trade with the West increased by 20 percent, he added. He said that currently Iran's trade with China, India and UAE is on the rise, as compared to Pakistan, and the purpose of his visit was to look into the issues hampering trade between the two countries.
The Minister said that Iran has increased PTA list by a number of items to boost the current level of trade. He said that Pakistan can export pharmaceutical products, Halal food and meat to the Iranian market currently being imported from Australia. He underlined the need for participation in the Iranian trade fairs and exhibitions and exchange of business delegations. He stressed the need to open private banks in both countries for speedy and effective transaction of business deals.