ISLAMABAD: On Thursday, Iranian Ambassador Dr. Reza Amiri Moghadam stated that the forthcoming visit of Iranian President Ebrahim Raisi to Pakistan is expected to conclude the finalization of a Free Trade Agreement (FTA).
Speaking to the business community while visiting the Islamabad Chamber of Commerce and Industry (ICCI), the Iranian envoy said that various bilateral trade and economic agreements would be signed during the visit, in addition to the FTA increasing mutual commerce.
In addition, he stated that Pakistan will be linked to regional and international trade and that the two nations’ economic ties would be strengthened by having robust air, maritime, and sea connections.
The envoy emphasized the tight ties between the ports of Karachi, Gwadar, Chabahar, and Bandar Abbas, particularly those by sea, and suggested that Gwadar and Chabahar be designated as sister ports.
According to the Iranian ambassador, the sum of bilateral trade is currently only $2.5 billion, although it has grown by 11% over the previous 11 months.
“There is a strong possibility that the mutual trade between Pakistan and Iran would reach $5 billion in the next few years after the free trade agreement and bilateral agreements for the promotion of mutual trade,” he continued.
According to him, mutual trade between Iran and Pakistan may meet 70% of each country’s demands. For example, Pakistan can contribute significantly to Iran’s halal meat imports.
The envoy went on to say that the Pakistan-Iran gas pipeline was an important project that would help Pakistan’s industrial and home sectors.
He stated that Tehran finished the $1 billion gas pipeline project in 2009 because it was serious about helping Pakistan with its energy issues and that it was imperative that the project be finished as soon as possible.
He continued by saying that since Iran was already doing business with Turkiye, Turkmenistan, and Azerbaijan in the gas and energy sectors, Pakistan might emulate their policies.
Although Iran has banking ties to Turkiye, Bahrain, and Iraq, he agreed that the banking conduit between Pakistan and Iran was a big problem.
