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In the wake of lifting of sanctions on Iran Pakistan is interested to negotiate a Free Trade Agreement with Iran: Minster for Commerce

Islamabad, January 19, 2016 (PPI-OT): Federal Minster for Commerce, Engr. Khurram Dastgir Khan has said that in the wake of lifting of sanctions on Iran, Pakistan is interested to negotiate a Free Trade Agreement with Iran and draft of FTA template can be forwarded to the concerned authorities in Iran as soon as they express their willingness. He said that the lifting sanctions from Iran has provided Pakistan with a historic opportunity to raise mutual trade and investment to new heights as the leaders of the two nations envisioned in their meeting in 2014. The Minister expressed these views in a meeting with the newly appointed Ambassador of Iran to Pakistan H. E. Mehdi Honardost.

He was of the view that the next logical step after a Preferential Trade Agreement is an FTA and Pakistan couldn’t find a better time to initiate negotiation on new Trade Agreement than right after the removal of sanctions from Iran. New circumstances merits new agreements and enhanced cooperation for the mutual benefit of the two neighbours, he added.

The Minster said that the banking sectors of the two countries will establishes active linkages within weeks to facilitate the traders to channel their payments. In the past few years, lack of recognized and trustable payment mechanism through banks proved to be the single largest factor hindering bilateral trade.

Bilateral trade which was nearing $1 billion was reduced drastically as a result of sanctions and the unwillingness of banks to finance trade. The Minister added that the last hurdle in resuming smooth trade relations between the two countries have been taken away thus providing opportunity to implement the projects which have been in limbo since last few years.

Pakistan wants more predictability in tariffs from Iran on agricultural produce and their products. Iranian duties on agriculture fluctuate widely depending upon the time of harvest ranging from on-seasonal highs to off-seasonal lows. The two sides need to agree on Sanitary and Phyto-Sanitary standards as this proves an unwanted barrier in bilateral trade.

The conclusion of an FTA between Pakistan and Iran and inclusion of Iran back into the world TRADING SYSTEM would bring more predictability and clarity and the seasonal shifts in duties and trading pattern would give way to surer trading regime

Mr. Dastgir said that Pakistan has plans to construct the three border posts on the Iranian border on modern lines with twenty first century infrastructure in order to facilitate the land trade. These posts will be linked through a single road which would be further connected with the main arteries leading north.

The Iranian Ambassador showed his government’s resolve to reactivate the trade relations after the removal of sanctions especially with the immediate neighbours. He was of the view that the supply of Iranian energy can prove to be a turning point for Pakistan’s economy.

For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +92-51-9252323 and +92-51-9252324
Fax: +92-51-9252325 and +92-51-9252326
Email: piopid@gmail.com

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