UBG for enhancing Pak-Iran bilateral trade, economic cooperation

KARACHI: Leaders of United Business Group (UBG) have urged stakeholders from both Pakistan and Iran to seize this opportune moment and capitalize on the potential for increased bilateral trade and economic cooperation.

By leveraging the existing PTA and exploring further avenues of collaboration, Pakistan and Iran can unlock new horizons of growth and prosperity for their respective economies.

Central President Zubair Tufail, Chairman (Sindh Zone) Khalid Tawab and Secretary General (Sindh) Hanif Gohar extended their heartfelt appreciation for General Asim Muneer’s recent visit to Iran, acknowledging the significant potential it holds for enhancing bilateral trade and economic ties between Pakistan and Iran. The UBG leaders firmly believe that the visit, along with the signed pacts, will contribute to the mutual prosperity of both nations.

According to UBG’s central spokesperson Gulzar Feroze, UBG Leaders said Pakistan and Iran, as esteemed members of the Organization of Islamic Cooperation (OIC) and the Economic Cooperation Organization (ECO), are actively dedicated to promoting trade among Islamic countries. The historical, linguistic, cultural, religious, and geographical ties shared between the two nations provide a strong foundation for robust neighbourhood relations. The UBG leaders emphasized the importance of fully utilizing the potential offered by their shared borders to facilitate bilateral trade.

To unleash this potential, it is crucial for the business communities of both countries to engage in more aggressive interaction. The UBG leaders emphasized the need to curb border smuggling activities and facilitate barter trade as crucial steps towards transforming security borders into economic zones and developing border markets. This approach will pave the way for increased economic cooperation and enable both nations to fully exploit their geographical proximity.

The UBG leaders highly commend the joint commitment demonstrated by Pakistan and Iran to eradicate the menace of terrorism in the border areas while concurrently expanding economic relations. Notably, initiatives such as the Iran-Pakistan gas pipeline and electricity exports exemplify the shared vision for a prosperous future.

It is worth mentioning that although Pakistan and Iran signed the Preferential Trade Agreement (PTA) in 2005, which came into effect in 2006 both countries have yet to fully maximize its benefits. Under the PTA, Pakistan offers concessions on 338 tariff lines to Iran, while Iran reciprocates with concessions on 309 tariff lines. These preferential trade terms cover approximately 18 percent of the Most Favoured Nation (MFN) tariff for both nations.

Copyright Business Recorder, 2023