In a major breakthrough, Iran has expressed willingness to sign five year strategic plan for comprehensive trade and investment cooperation, beginning of talks on Free Trade Agreement (FTA) and consent for a single country exhibition, well informed sources told Business Recorder. Both countries will ink agreements and MoUs during the two-day (March 25-26) forthcoming visit of Iranian President, Hassan Rouhani.
President Iran Chamber of Commerce Mohsen Jallalpour is already in Pakistan to discuss ways and means to strengthen trade relations between the two countries and finalisation of agreements. "Europeans find Iran a secure place to grow and contribute to the growth of the region, so why not business people from Pakistan. We can start by developing regions near the borders. We should work together to make sure that people in that region have decent lives and jobs," said Mr Jallalpour.
The sources said, State Bank of Pakistan (SBP) has also allowed Pakistani business community to trade with Iran in euro as Europe has lifted sanctions against Iran but transactions in dollars are still restricted. A senior official of Commerce Ministry told Business Recorder that the proposed plan includes the simplification of customs procedures, enhanced cooperation between customs authorities of both sides, opening of more border points, multi-modal infrastructure development and improved connectivity.
"It''s a breakthrough that Iran has conveyed its consent to sign strategic plan to support trade and investment. They have also agreed to start talks on FTA, a long-standing demand of Pakistan, besides allowing single country exhibition- a dream for Pakistan," the official added.
According to sources, potential opportunities for Iran in Pakistan are as follows ;(i) renewable energy (in particular wind);(ii) construction & housing;(iii) oil and lubricants;(iv) manufacturing sector (automotive, retail market, electronics, other electric equipment, pharmaceutical, Industrial and commercial machinery, etc);(v) China Pakistan Economic Corridor (CPEC);(vi) railways ;(vii) tourism.
Major imports from Iran are as follows: mineral fuels, oils, distillation products, etc, ships, boats and other floating structures, iron and steel, edible vegetables and certain roots and tubers, raw hides and skins (other than furskins) and leather, electrical, electronic equipment, salt, sulphur, earth, stone, plaster, lime and cement, edible fruit, nuts, peel of citrus fruit, melons, plastics and articles thereof and coffee, tea mate and spices.
Pakistan''s major exports to Iran are as follows : Paper and paperboard, articles of pulp, paper and board, cereals, meat and edible meat offal, machinery, nuclear reactors, boilers, etc, plastics and articles thereof, optical, photo, technical, medical, etc apparatus, sugars and sugar confectionery, ships, boats and other floating structures, cotton and vegetable, fruit, nut, etc food preparations
Commerce Minister Engineer Khurram Dastgir held a consultative meeting with all the stakeholders on Iran. During the meeting, representatives of Lahore Chamber of Commerce and Industry (LCCI) urged on development of electricity transmission infrastructure to import electricity from Iran to meet Pakistan''s energy shortfall (approx. 5000mw) and arrangement of one-country exhibitions for both the countries. It was also urged to connect China-Pakistan Economic Corridor (CPEC) with Iran, establishment of airline links between national carriers of Pakistan and Iran and setting up of Economic Zones for regional connectivity.
LCCI further proposed establishment of Pakistan-Iran Joint Economic Council and arrange a co-ordinating secretariat to support policy Implementation and a working group to start the proposed projects. The representatives of business community requested the government to expedite the implementation of the historic Iran-Pakistan Gas Pipeline and revisit of gas pricing.
Urgent demand for textile products including made-ups, denim and home textiles has been identified. A delegation of textile industry is planning to visit Iran in April. Another delegation of Halal food is visiting Iran during the 3rd week of April. Halal World Institute wishes to sign an MoU on mutual cooperation with Government of Punjab and the Federal Government
An Iran company Astan-e-Quds has already invited Pakistani companies for joint ventures. Major engineering consulting from Mahav Ghodss wants to set up a JV office in Pakistan. Representative of three banks, accompanying the delegations, who are now in the process of setting up corresponding relationships, hopeful they will be ready by end March to start opening LCs, the sources added.
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