The Multan Chambers of Commerce and Industry (MCCI) has urged upon the Government to take concrete steps for bilateral trade between Pakistan and Iran, and take advantage of being strategic neighbours. This would help in boosting up the export of Pakistani products.
President of MCCI Fareed Mughis Sheikh said that MCCI places great importance to Iran and its business community. "We have immense potential to increase trade volumes between the two countries," said Fareed "It's time trade barriers are removed, so that collectively we can become a strong economic bloc in the region." For this, both sides may implement a preferential trade agreement (PTA) in letter and spirit which was signed in 2006, said Fareed Sheikh.
According to the PTA, Iran was given tariff concessions on 309 tariff lines while Pakistan was offered concessions on 338. Major sectors covered under the PTA were rice, fruits, cotton, cotton yarn, pharmaceutical products and cutlery. "We understand that some confusion is still there which hampers bilateral trade, but we should also understand that the Pak Iran Gas Pipeline project and trade issues are two different subjects" he said. He said that there was a great demand of Multani Mango and kinnows in Iran while there was a scope for export of cotton, cotton yarn, jute sacks, leather products, to Iran. MCCI President said that the Iran Central Bank is ready to establish proper banking channels with Pakistan. The launch of HBL in Iran will be a good initiative to promote banking relationships. Pakistan's exports to Iran fell to $43 million in 2014 from $182 million in 2010. Iranian imports fell to $186 million in 2014 from $884 million in 2010. However, in April 2015, Pakistan and Iran decided to prepare a five-year plan to enhance bilateral trade to the tune of $5 billion.
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