Pakistan, Iran to discuss FTA prospects

The Federal Cabinet recently cleared MoU of State Bank of Pakistan (SBP), allowing it to start negotiations with Iran on opening of banking channels so that both countries could start economic activities legally.

Iran maintains high tariffs on Pakistani exports. For instance on textiles and clothing, Iranian tariff are as high as 120 per cent and 100 per cent respectively. Similarly on leather and footwear Iranian maximum tariffs are 120 per cent, on fruits and vegetables, 200 per cent, and 90 per cent on rice. These high tariffs are serious obstacles to Pakistan's market access in Iran. Iran also maintains a permit system for importers and when the Iranian government wants to restrict imports, it simply stops issuing permits.