ISLAMABAD: Pakistan Business Forum (PBF) has welcomed the emerging regional environment following the recent de-escalation of tensions, saying that peace in the region should now be translated into economic prosperity for the people of Pakistan and Iran.
Chief Organiser of PBF, Ahmad Jawad, said Pakistan’s constructive diplomatic engagement in promoting dialogue and regional stability has created an opportunity to reset economic relations with our western neighbour. He said “political goodwill must now be converted into practical economic cooperation through trade, investment and energy connectivity”.
Jawad said that despite sharing a 900-kilometre border, historical ties and complementary economies, official bilateral trade between Pakistan and Iran remains close to USD 2 billion annually, far below its true potential. “There is no reason why Pakistan and Iran cannot increase bilateral trade to USD 5 billion within the next few years and ultimately achieve USD 10 billion annually through policy reforms, improved border infrastructure, banking arrangements and stronger private-sector collaboration,” he said.
He noted that Pakistan has significant export opportunities in rice, textiles, fresh fruits surgical instruments, pharmaceuticals, sports goods, leather products, Halal food, cement, engineering goods and information technology services. Iran, on the other hand, can become an important supplier of natural gas, petrochemicals, fertilisers, chemicals, construction materials, and dry fruits, creating a mutually beneficial trade partnership.
“Jawad said the Pakistan Business Forum believes that one of the most important confidence-building measures would be to revive discussions on the Iran-Pakistan Gas Pipeline”. He stated that the pipeline, designed to deliver up to 750 million cubic feet of natural gas per day, has the potential to help address Pakistan’s long-standing energy shortages, strengthen industrial production, improve electricity generation, support the fertilizer sector and reduce the cost of doing business.
“The future of Pakistan’s economy depends on affordable and reliable energy. Energy security is directly linked with industrial growth, exports, employment and investment. If implemented within an appropriate legal and diplomatic framework, the Iran-Pakistan Gas Pipeline can become a strategic economic asset for Pakistan,” he said.
He further stressed that both countries may establish a Joint Economic Council with strong private-sector representation, modernise border crossings, operationalise additional border markets, improve customs procedures, facilitate business visas, encourage joint ventures and strengthen transport and logistics connectivity.
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