According to newspaper reports, the consul general of Iran has expressed the desire to enhance trade between Pakistan and Iran up to $5 billion per year. In an official meeting of the Pak-Iran Joint Chambers of Commerce,he informed that efforts are being made to set up a joint banking system to boost trade activities.Earlier, the State Bank of Pakistan had signed an agreement with central bank of Iran to establish a mechanism to facilitate financial transactions between the two countries.A system of formal banking channels will not only facilitate economic cooperation between the two sides, but will also pave the way for Iran to join China Pakistan Economic Corridor.Pakistan and Iran are not only two brotherly neighbouring countries, but also intermingled with historical, cultural and linguistic strings and both should have joined hands to set up a practically and viable trade mechanism for the benefit of the two countries. It is unfortunate that the leadership of Pakistan could not extend a hand of cooperation to Iran as a big country. Instead of finding any positive and common grounds to enhance business and trade, the Pakistani leadership blindly followed the cue given to it by Arab countries in the Gulf. As a matter of fact, Pakistan should have cordial relations both with Iran and Arab countries and a balanced approach is the only option.
At a time when business is the priority for every nation, relations with one country should not be maintained at the cost of the other country. Iran is an immediate neighbor and both Pakistan and Iran can benefit from each other through trade, business and economic cooperation.It is also highly unfortunate that both the countries, despite close affinity, could not established banking channels to stimulate trade activities. The lack of official channels have boosted illegal trade between the two countries. Iranian diesel, petrol, ceramic items and plastic granules are frequently smuggled into Pakistan and the customs department has to assign extra staff and spend hundreds of man-hours to control this menace. If legal trade is increased, it will not only bring positive changes on diplomatic fronts, but will also bring financial gains for the two countries. The European Union has established a mechanism to promote legal trade within the countries and the same system can be adopted here. Pakistan and Iran share around 1000 kilometer border and it is difficult for the authorities to control smuggling. The only way out is to enhance legal trade and both the countries should work together to give a practical shape to the legal trade channels.
