Pakistan, Iran: Need stressed to promote ‘official trade’

KARACHI: Chief Executive of Ta’min Petroleum & Petrochemical Investment Company (TAPPICO) of Iran, Reza Babak Afghahi, while commenting on the existing trade between Iran and Pakistan, underscored the need to bring down the unofficial trade going on between the two countries to zero by fully facilitating and promoting official trade.

Exchanging views at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI), he noted that a lot of Iranian products were arriving here but most of them were landing in the Pakistani markets via unofficial channels, which was the basic reason why an Iranian delegation was here so that ways and means for diverting all such products to official channel could be explored. If both countries including their business communities build strong connections with each other, the existing official trade volume, as well as, profitability could be improved further, as official trade would prove favourable for both economies.

CE TAPPICO further stated that Pakistan imported LPG, methanol, motor oil, grease, carbon black, petrochemicals and other similar products from numerous countries at a cost of US$5 million last year which can be produced in Pakistan with the help of Iranian companies through joint ventures.

Referring to his discussions during several meetings of Iranian delegations with Pakistani counterparts, he said that sanctions on Iran were mostly highlighted during all these meetings which should not be a matter for business community as most of the sanctions imposed on Iran were political. “One fine example, in this regard, is that despite sanctions, Iran has exported goods worth US$200 million to United States”, he added while advising the business community not to worry about sanction as ways can easily be explored for carrying out businesses.

He stressed that Iran and Pakistan being friendly and brotherly countries have to make serious efforts to enhance the existing official trade between the two countries.

He said that Iran was ready to share its raw materials, knowledge, expertise and engineers which would create more employment and business opportunities in Pakistan. “Instead of providing finished goods, it’s better we provide raw materials to Pakistan so that you could finalise the product by adding value and subsequently, utilise it either for domestic consumption or exports”, he added.

Earlier, President KCCI Iftikhar Ahmed Sheikh, while warmly welcoming members of Iranian delegation, said that despite excellent brotherly relationships, the bilateral trade volume was below its full potential which needs to be enhanced to its true potential of around $10 billion. “Both countries must reduce trade barriers, streamline customs procedures, improve the ease of doing business, and support SMEs, to boost exports & deepen economic integration between the two countries.”

He pointed out that the absence of a formal banking channel was one of the key stumbling blocks which needs to be resolved to give a boost to trade and bilateral exports between the two countries whereas swift finalization of FTA and establishment of a joint free zone, supported by both governments, will stimulate bilateral investment and boost economic integration between the two countries.

He stressed that collaboration between Pakistan and Iran will not only help in overcoming energy and economic needs but also support greater regional connectivity, economic stability and prosperity. “It is crucial to engage in joint ventures, technology exchange, and capacity-building initiatives to enhance energy cooperation between the two nations and explore opportunities to diversify trade beyond existing strengths”, he added.

Underscoring the need to enhance connectivity and invest in infrastructure development by establishing border markets and expanding rail & road networks, he said that these measures would strengthen cross-border economic cooperation and help in tackling illegal border trade which would, in turn, boost formal trade between the two countries.

He also invited Iranian investors to take advantage of available business opportunities in China-Pakistan Economic Corridor (CPEC) through investments and joint ventures in 9 special economic zones, offering huge incentives to foreign and domestic investors.

Commercial Attaché Iranian Consulate Karachi Morad Nemati, KCCI Senior Vice President Altaf A Ghaffar, Vice President Tanveer Ahmed Barry, Chairman Diplomatic Missions & Embassies Liaison Subcommittee Farooq Afzal, Former President KCCI Iftikhar Ahmed Vohra and KCCI Managing Committee Members were also present.