TEHRAN: With an objective to boost bilateral trade with Iran in post UN sanctions era, Pakistan has presented a comprehensive package of measures to Iran. This package include on numerous steps including enhancing private sector cooperation, reactivating joint business council (JBC), using ECO-CCI forum for increased interaction, FDI- joint investments, addressing NTBS & SPS issues, strengthen cooperation in SPS/ standards, agreement on cooperation in veternary/animal health fields, payment mechanism, arrangements by central banks , barter/commodity exchange, opening of accounts by central banks and others.
Pakistan’s exports to Iran were $43 million in 2014 and major exports were mineral fuels, Rice, Iron and Steel and Machinery whereas tune of Pakistani imports remained as $186 million in 2014 and major imported items included Paper products, Ships, boats, Meat Products, Vegetables and Raw Hides and Skins. A well placed official source at Ministry of Commerce on anonymity condition told Pakistan Observer that objective of moving forward the package of measures for bilateral trade boost included to raise volume of bilateral trade $ 5 billion, enhanced market access, mechanism to address issues hampering trade, market access, PTA expansion & deepening, initiation of FTA negotiations, ECOTA implementation, trade facilitation, opening of additional border crossing points, upgrading road & rail infrastructure, simplification of customs procedures, trade promotion and TDAP and Iranian trade promotion.
The source said that presently, bilateral trade also confronted with some tariff and non-tariff issues; tariff Issues include High Iranian tariffs on products of export interest to Pakistan and Raising tariffs in violation to PTA (tariff on Kinnow was raised from 46% to 90% and subsequently a complete ban was imposed in 2012) “Whereas, Non Tariff Issues include International sanctions (UNSC, US, EU) on Iran, banking issues/non-availability of payment mechanism, import authorization system, problems in issuance of visa for businessmen, problems being faced by transporters, high visa fee, load tax, road tax, early closure of gates for transit at Mirjaveh (Iran)” the source added.
To the achieve the objectives, source said that Pakistan would actively engage Iran as there was possibility of lifting of sanctions against Iran which are the major obstacle in bilateral trade. “Moreover, the source added that approval/implementation of five year plan and a high level intervention would be required to sensitize top Iranian leadership of bottlenecks in bilateral trade, therefore, Finance Finance/SBP would devise mechanism of financial transactions with Iran in non-sanctioned items such as food, medicines and medical devices.
