If Pakistan is the emerging economy, Iran is the emerging economic power. Both the countries are intermingled in historic, cultural and religious bonds and time is ripe to strengthen economic relations. Economy reigns supreme in modern diplomacy, but it is more than diplomacy as economy is the only binding force which keeps the nations of diverse ideologies and geographies all together. The recent visit of Iran’s President Hassan Rouhani is a good omen. Iran is not only our immediate neighbor, but also partner in business and trade. During Rouhani’s visit, both countries stressed the need for removing non-tariff barriers to take bilateral trade volume up to $5 billion in next five years.The current bilateral trade hovers around $270 million. Pakistan and Iran have signed a document, covering a five-year plan to enhance strategic cooperation and usher in a new era of bilateral trade and economic relations between the two countries.
Prime Minister Nawaz Sharif and President Rouhani both have attached highest priority to trade and economic cooperation. The areas covered in the plan are deepening preferential agreement, holding exhibitions in each other’s country, establishment of joint border trade points and revival of joint business council. If high tariffs, exorbitant visa fee and taxes are serious obstacles in the way of Pakistani products to enter the Iranian markets, the Pakistani policymakers have also failed to give easy access to Iranian products in the country. As a result, illegal trade is flourishing and the communication gap between the two countries have allowed smugglers to fill the vacuum. If Pakistan needs excess to Iranian markets, it will have to open its own markets for Iranian products. However, there is a need to look into the future and not in the past and that is something which the leadership of the two countries has to do.
Iran is willing to join the China Pakistan Economic Corridor as well as wants Pakistan to honour international commitments with regard to the Pak-Iran gas pipeline project. The two projects are not only in favour of Pakistan, but also for Iran and this is the best step forward on the road of regional integration. The State Bank of Pakistan has already revived banking relations with it Iranian counterpart, but the two countries still have to go a long way to identify opportunities and remove impediments. The two countries have set the ambitious target of bilateral trade up to $5 billion,but they still have to work on the free trade agreement. There is a need to enhance business-to-business contacts and businessmen should exploit untapped resources available in the two countries.
