Nemati calls for bring down Custom duties to encourage legal trade

• CPEC this essential project was going to open up huge opportunities not just for Pakistan but also for Iran
• Both the countries have shared their desire of upgrading Preferential Trade Agreement (PTA) into Free Trade Agreement (FTA).
• SBP has also shared draft of MoU for signing its Banking Paying Arrangement (BPA) with Iran's Iranian Bank Markazi Jomhouri.

KARACHI: Leader of the Iranian delegation Morad Nemati has said that in order to improve the trade relations between Pakistan and Iran, it was essential that steps have to be taken to deal with the barriers hindering smooth trade between the two brotherly countries.

Exchanging views at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI) here on Saturday, Morad Nemati said in addition to bringing down the high Custom duties, formal banking channel between the two countries has to be activated which was widely being demanded by the business communities of both sides.

Commercial Attach of the Iranian Consulate in Karachi Mahmoud Hajy Yousefi Pour, KCCI Vice President Shahid Ismail, former Vice President Asif Sheikh Javaid, managing committee members and members of the Iranian delegation from different sectors of the economy were also present on the occasion.

While referring to China-Pakistan Economic Corridor (CPEC), Morad Nemati said that this essential project was going to open up huge opportunities not just for Pakistan but also for Iran and they (Iran) want to become part of this project which would surely ensure prosperity in the entire region.

He also underscored that that the business communities of the two countries will have to meet more frequently and improve their contacts, besides holding Single Country Exhibitions which would certainly improve trade and investment in both the brotherly countries.

Earlier, Vice President KCCI Shahid Ismail, while welcoming the Iranian delegation, stated that despite being brotherly countries, trade remains low hence, Pakistan and Iran must make collective efforts to explore new avenues.

It has always been KCCI's struggle to promote bilateral trade and the Chamber has a very positive approach towards improving trade ties particularly with neighboring countries.

He pointed out that the bilateral trade between Pakistan and Iran was much less than the potential as Pakistan exports stood at a mere $330.2 million while the imports were around $1.247 billion during 2018.

Shahid Ismail noted that the negotiations on Free Trade Agreement (FTA) are underway as both the countries have shared their desire of upgrading Preferential Trade Agreement (PTA) into Free Trade Agreement (FTA) for which initial drafts have already been shared while the State Bank of Pakistan has also shared draft of Memorandum of Understanding (MoU) for signing its Banking Paying Arrangement (BPA) with Iran's Iranian Bank Markazi Jomhouri. Both countries have already signed MoU through which channels would be opened in the central banks of both the countries for trade transactions that would reduce the usage of dollar account for Letter of Credit (LC) clearance.

Shahid Ismail underscored the need to sort out infrastructural constraints to enhance bilateral trade via Quetta-Taftan land route whereas regular operation of ECO container train will lend impetus to cargo and transit facilities between the two countries. While underscoring the need for a realistic approach, Vice President KCCI said that KCCI was keen to strengthen trade ties with their counterparts in Iran.