# Pakistan, Iran move to ink free trade deal



## Albatross

*






Pakistani officials say Iran has agreed with the initial draft of a bilateral free trade agreement, paving the way for the start of formal negotiations to finalize the agreement. *

The two countries signed a “strategic action plan” to raise their trade to $5 billion in the next five years when President Hassan Rouhani visited Islamabad in March.

“We have recently got back the initial draft that we shared earlier with the Iranian authorities; they have given their input and agreed to push ahead with the plan,” Pakistani media quoted a senior official at the country’s Ministry of Commerce as saying on Monday.

According to the unnamed official, a Pakistani delegation will visit Iran “most probably by next month” to start formal talks on the free trade agreement.

A preferential trade agreement has been in force between the two neighbors since September 2006 but financial transactions have not surpassed $1.3 billion which they recorded in 2012 when US-led sanctions on Iran brought them down to $432 million.

The changed scenario after the removal of the sanctions has prompted Iran and Pakistan to give a fresh impetus to their trade ties.

Last month, they agreed to open special bank accounts in their local currencies to streamline the payment system. The absence of a payment mechanism was a key hurdle to trade between the two neighbors because a US ban on Iran’s access the American banking system prohibits transactions in the dollar.





Pakistani Minister‬ for ‪Commerce‬ Khurram Dastgir Khan (R) and Iranian Minister of Industry, Mining and Trade Mohammad Reza Nematzadeh are signing a Strategic Trade Partnership Plan agreement in Islamabad on March 25, 2016.
A free trade agreement envisages transactions in goods, services and investments. To achieve that, they have to tackle a number of hurdles first, including non-tariff barriers and infrastructure bottlenecks.

Pakistan is currently receiving 100 megawatts of electricity from Iran for its border cities and is negotiating to raise this to 1,000 megawatts to cover its shortfalls where it suffers about 12 hours of power cuts per day.

The two countries’ biggest plan, however, is to carry Iran’s gas to Pakistan through a 1,900-kilometers pipeline. Iran has completed its part of the gas pipeline and is waiting for Pakistan to finish the job.

The energy crisis in Pakistan has worsened in recent years over 4,000 megawatts of electricity shortfall. The nation of 190 million people can only supply about two-thirds of its gas needs.

Successive Pakistani governments, however, have dragged their feet on the Iranian gas project under pressure from the US which is rooting for an alternative pipeline from Turkmenistan.

Iranian gas deliveries were supposed to commence in 2014, with Pakistan contractually obliged to pay fines for the delay. 

While Iran has agreed to forego the fines, the breakthrough in nuclear talks between Iran and the West and China’s decision to provide Pakistan with a $46 billion investment package have heightened the prospects of the pipeline's finalization. 
http://presstv.ir/Detail/2016/09/13/484463/Iran-Pakistan-free-trade-agreement-banking

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## maximuswarrior

Very good development. May the region have more such trade deals.

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## AZADPAKISTAN2009

Trade is the way forward , less war - more trade locally and globally

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## Thəorətic Muslim

And Saudi's will dangle a few barrels of free or subsidized oil.


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## Umair Nawaz

someone tell these dumb press tv guys that China and Russia are already building pakistani part of gas pipeline.



Thəorətic Muslim said:


> And Saudi's will dangle a few barrels of free or subsidized oil.


we wont care abt that, what we care is iran being part of CPEC and so does GCC countries as both have desired.. This is in our own interests.

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## Ghareeb_Da_Baal

isolated pakistan!

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## LA se Karachi

Great news. Once it's officially implemented, I expect trade between the two countries to soar.

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## Kabira

Umair Nawaz said:


> someone tell these dumb press tv guys that China and Russia are already building pakistani part of gas pipeline.
> 
> 
> we wont care abt that, what we care is iran being part of CPEC and so does GCC countries as both have desired.. This is in our own interests.



Really? I don't think construction have started.


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## Umair Nawaz

save_ghenda said:


> Really? I don't think construction have started.


as far as i know it already has since june.

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## Finer

My prediction has been spot on. The future alliance belongs to Pakistan, China, Russia, Turkey, and Iran.

As usual, India continues to remain left out as its has from AP transit, CPEC and many more in the future, never mind the long list of rejection pattern India has enjoyed from Turkey, Arab nations, China, USA and Russia [in future]. hehehe!

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## Mangus Ortus Novem

FTA with Pak is the first step for Iran to join EEU, OBR and FTA with China.

The entire landmass of euarasia is nicely knitted together with OBOR, CPEC, SCO and EEU. GCC has no choice but to joing CPEC...after FTA with iran Pak can expect a similar or even better trade deal with GCC.

The era of economic, industrial and social development is about to really take off for PAK. 

Just keep the indian sponsored terror down and seal the AFG border until a friendly regime comes to power in AFG.

Great days ahead for Sino-Pak Friends!

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## Taimoor Khan

We need to dangle the carrot of CPEC to both Iran and GCC. They both can use our territory to export their oil/gas to China, PROVIDED, they fully understand our security interests in the region and beyond, and they disengage with India.


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## graphican

Pakistan, Iran and Turkey will be on one side in a future war against India - and this is materialising more and more. Its going to take time but Iran would not be part of any future conspiracy against Pakistan.


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## Tshering22

graphican said:


> Pakistan, Iran and Turkey will be on one side in a future war against India - and this is materialising more and more. Its going to take time but Iran would not be part of any future conspiracy against Pakistan.



And what gripe do Iranians or Turks have against us?

Care to elaborate?


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## graphican

Tshering22 said:


> And what gripe do Iranians or Turks have against us?
> 
> Care to elaborate?




Pakistan, Iran and Turkey will be on one side is a prediction of NiatAllah Shah Wali for an upcoming future war against India. This equation is now materialising more and more. Turkey is one of Pakistan's ally already, and Iran has been one of our allies in previous wars against India. However, there was a low time in this relationship when Iran started aligning with India and tried to play against Pakistan. With CPEC and Iran joining in, it will stop acting against Pakistan and has good reasons not to act against its economic partner.


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## nana41

Fallen King said:


> My prediction has been spot on. The future alliance belongs to Pakistan, China, Russia, Turkey, and Iran.
> 
> As usual, India continues to remain left out as its has from AP transit, CPEC and many more in the future, never mind the long list of rejection pattern India has enjoyed from Turkey, Arab nations, China, USA and Russia [in future]. hehehe!


Russia has long desired to have Pakistan,Turkey and Iran within her sphere of influence.Only American cronies running Pakistan and Afghanistan were in the way. With the inclusion of Afghanistan, Russian State 's southern flanks will totally be safe.Chinese are like johny come lately.


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## Al-Taïr

Would b nice to c it happen


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## X-2.

Albatross said:


> *
> 
> 
> 
> 
> 
> 
> Pakistani officials say Iran has agreed with the initial draft of a bilateral free trade agreement, paving the way for the start of formal negotiations to finalize the agreement. *
> 
> The two countries signed a “strategic action plan” to raise their trade to $5 billion in the next five years when President Hassan Rouhani visited Islamabad in March.
> 
> “We have recently got back the initial draft that we shared earlier with the Iranian authorities; they have given their input and agreed to push ahead with the plan,” Pakistani media quoted a senior official at the country’s Ministry of Commerce as saying on Monday.
> 
> According to the unnamed official, a Pakistani delegation will visit Iran “most probably by next month” to start formal talks on the free trade agreement.
> 
> A preferential trade agreement has been in force between the two neighbors since September 2006 but financial transactions have not surpassed $1.3 billion which they recorded in 2012 when US-led sanctions on Iran brought them down to $432 million.
> 
> The changed scenario after the removal of the sanctions has prompted Iran and Pakistan to give a fresh impetus to their trade ties.
> 
> Last month, they agreed to open special bank accounts in their local currencies to streamline the payment system. The absence of a payment mechanism was a key hurdle to trade between the two neighbors because a US ban on Iran’s access the American banking system prohibits transactions in the dollar.
> 
> 
> 
> 
> 
> Pakistani Minister‬ for ‪Commerce‬ Khurram Dastgir Khan (R) and Iranian Minister of Industry, Mining and Trade Mohammad Reza Nematzadeh are signing a Strategic Trade Partnership Plan agreement in Islamabad on March 25, 2016.
> A free trade agreement envisages transactions in goods, services and investments. To achieve that, they have to tackle a number of hurdles first, including non-tariff barriers and infrastructure bottlenecks.
> 
> Pakistan is currently receiving 100 megawatts of electricity from Iran for its border cities and is negotiating to raise this to 1,000 megawatts to cover its shortfalls where it suffers about 12 hours of power cuts per day.
> 
> The two countries’ biggest plan, however, is to carry Iran’s gas to Pakistan through a 1,900-kilometers pipeline. Iran has completed its part of the gas pipeline and is waiting for Pakistan to finish the job.
> 
> The energy crisis in Pakistan has worsened in recent years over 4,000 megawatts of electricity shortfall. The nation of 190 million people can only supply about two-thirds of its gas needs.
> 
> Successive Pakistani governments, however, have dragged their feet on the Iranian gas project under pressure from the US which is rooting for an alternative pipeline from Turkmenistan.
> 
> Iranian gas deliveries were supposed to commence in 2014, with Pakistan contractually obliged to pay fines for the delay.
> 
> While Iran has agreed to forego the fines, the breakthrough in nuclear talks between Iran and the West and China’s decision to provide Pakistan with a $46 billion investment package have heightened the prospects of the pipeline's finalization.
> http://presstv.ir/Detail/2016/09/13/484463/Iran-Pakistan-free-trade-agreement-banking


Excellent much needed it will bring more stability and development in both countries as wl as more economic stability to gawader and rest blouchistan


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## kasper95

while Pakistanies are dreaming of Some alliance and world changing against India due to the agreement,we Indians will be looking to setup some facilities in Iran,to manufacture and send to Pakistan as Iranian....


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## Finer

nana41 said:


> Russia has long desired to have Pakistan,Turkey and Iran within her sphere of influence.Only American cronies running Pakistan and Afghanistan were in the way. With the inclusion of Afghanistan, Russian State 's southern flanks will totally be safe.Chinese are like johny come lately.



No, It was USSR in the mold of warlord nation desired for more powers and controls. Now It is friendly Russia long for peaceful relationship Pakistan is dealing with. That has changed Pakistan's mind.


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## 50cent

As usual trade will be limited to



rename this thread to limited trade mafia Pakistan industry will not allow free trade


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