Lack Of Banking Channels, Major Hurdle For Promoting Pak-Iran

ISLAMABAD, Dec 9 (UrduPoint / Pakistan Point News - 09th Dec, 2016 ) : Pakistan and Iran have tremendous potential to promote bilateral trade in various sectors, but lack of payment mechanism through banking channels was the major hurdle in realizing these goals, Mehdi Honardoost, Ambassador of Iran to Pakistan said.

"Despite having a preferential trade agreement between the two countries, Iran's trade with Afghanistan was five times more than Pakistan", the Iranian Ambassador said while addressing business community here at Islamabad Chamber of Commerce and Industry (ICCI).

Mehdi Honardoost was of the view that Iran had $20 billion annual bilateral trade with Turkey and $50 billion with China, but regreted that there was almost negligible trade with Pakistan. When the Iranian envoy was apprised that his country has imposed high tariffs on some Pakistani products, he said that signing of free trade agreement between Iran and Pakistan would resolve all these problems.

He said Iranians preferred Pakistani products and stressed that Pakistan should step up efforts for early signing of FTA with Iran. He said Iran's biotechnology was better than many European countries and added that Pakistan could achieve beneficial results for its economy by enhancing cooperation with Iran in biotechnology, pharmaceutical, agriculture and other fields.

He assured that his embassy would fully cooperate with Pakistani business community in enhancing trade with Iran. Speaking at the occasion, Khalid Iqbal Malik President, Khalid Malik Senior Vice President and Tahir Ayub Vice President, Islamabad Chamber of Commerce and Industry said that Iran has imposed high tariffs on Pakistani products including textiles, clothing, leather products, rice, fruits and vegetables which ranged from 90% to 200% and stressed that Iran should reconsider its high tariffs to facilitate Pakistan's private sector in promoting trade with it.

They said that Iran maintained a permit system for imports and whenever it wanted to restrict import of certain items, it refused issuing import permits which was also hindering exports of Pakistan to Iran.

They emphasized that Iran should review its import permit system to facilitate Pakistani exporters. Other businessmen also spoke at the occasion and stressed that Pakistan and Iran could focus on frequent exchange of trade delegations and organizing exhibitions in each other country to explore new avenues of two way trade promotion.

They said Pakistan should import gas and electricity from Iran to overcome its energy crisis and facilitate growth of business and industrial activities in the country.