TEHRAN: Iran and Pakistan are planning to increase the volume of their annual trade to USD 5 billion over the next five years following the removal of sanctions imposed on Iran on ground of its peaceful nuclear program.
According to a report by Pakistan’s ACQ website, the decision was announced following a meeting at Pakistan’s Commerce Ministry on Monday, which was attended by officials from Federal Board of Revenue, State Bank of Pakistan, and Trade Development Authority of Pakistan.
Following imposition of sanctions on Iran, its trade volume with Pakistan fell drastically as a result of which Pakistan’s exports to Iran plummeted to USD 43 million in 2014 from USD 182 million in 2010.
At the same time, imports from Iran fell from USD 884 million in 2010 to USD 186 million in 2014.
Iran and Pakistan signed a preferential trade agreement (PTA) in 2006, according to which tariff concessions were granted to Iran on 309 tariff lines while Pakistan was offered concessions on 338 tariff lines, the report said.
The Iranian delegation will discuss, among other things, the expansion of PTA with Pakistan as experts predict that normalization of payment mechanisms between the two countries will pave the way for diversification of trade exchanges.
Major export and import goods covered by the PTA include rice, fruits, cotton, cotton yarn, pharmaceuticals and cutlery.
