Pakistan, Iran working on draft Free Trade Agreement

[AZADPAKISTAN2009]

By Abdul Kerimkhanov

https://www.azernews.az/region/148354.html

As part of the expected major event, Pakistan and Iran are likely to finalize the draft Free Trade Agreement (FTA) during the two-day talks on April 22-23, which will be held in Islamabad.

Technical groups of both sides will discuss crucial interaction and, most likely, will approve the draft free trade agreement, reports The News International.

According to a high-ranking official in the Pakistan Ministry of Commerce, both sides worked a lot on the draft Free Trade Agreement, and now they are inclined to give a green light to it.

Currently, the trade activities between both neighboring countries is conducted in accordance with the Preferential Trade Agreement (PTA), which was signed in 2006 and entered into force in 2007.

In 2008-2009 fiscal year, the trade between the two countries increased by almost $1.32 billion, but after the sanctions of the U.S. and UN enetred into force, the volume decreased dramatically to almost $318 million, of which imports from Iran totalled $280 million and exports from Pakistan - only $35 million.

Pakistan’s exports dropped to $ 35 million in 2018 from $ 350 million in 2018–2019. The reintroduction of strict U.S. sanctions by the Trump administration is the main reason for the low level of trade relations.

The Preferential Trade Agreement (PTA) no longer works. However, imports from Iran are about $ 280 million.

Iran, which is the nearest neighboring country, has $ 18 billion in a trade with India, even with U.S. sanctions.

Sources also said that Pakistani banks are still embarrassed to conduct operations with Iranian banks. The lack of banking channels is the only serious obstacle to the expansion of trade. However, the State Bank of Pakistan and the Central Bank of Iran are also negotiating payment terms through banking channels.

Diplomatic relations between Iran and Pakistan were established in August 1947. Iran became the first country in the world to recognize the sovereign status of Pakistan.

Both countries are members of the Islamic G8, the Economic Cooperation Organization (ECO) and observers in the Shanghai Cooperation Organization (SCO).

Iran and Pakistan are close neighbors enjoying the similarity of views on most regional and international issues.

Today, Iran and Pakistan are well aware that solving economic problems, strengthening the security of the two countries is possible only with close cooperation.

 

[AZADPAKISTAN2009]

https://nation.com.pk/19-Apr-2019/iran-favours-5b-trade-volume-with-pakistan

TEHRAN - Minister of Industry, Mines and Trade Reza Rahmani called for raising the volume of trade exchanges with Pakistan to $5 billion by 2021. Addressing a ceremony marking Pakistan Day in Tehran, he hoped the goal will be materialized by establishing banking ties and finalization of free trade memorandum of understanding. He said that Iran and Pakistan boast of numerous commonalities in various sphere including religion, culture and history.


Iran was the first country which recognized independence of Pakistan and established embassy in Islamabad, Rahmani said, describing Pakistan as major gateway for Iran to enter to the East. “Iran is also a country with numerous economic potentials,” he said, noting that Iran’s economy and market will not be ignored by the economic activists and political officials. The two countries are able to develop collaboration in the fields of agriculture, foodstuff, tourism, pharmaceuticals and sports.

Pakistan's main objective should be Full Trade between Pakistan-Iran- Turkey , 80-90 Billion in bilateral trade
between 3 giant civilizations of Asia

 

[Murgah]

i hope iran and pakistan became a good friend their is a great potential of trade between two countries and turkey also get benefit for trilateral trade

 

[Cthulhu]

Very good development.

 

[AZADPAKISTAN2009]

Pakistan's National Interest is grow Trade with Iran 5 Billion to 10 Billion Dollar
Ideally it should be 15 Billion Bilateral Trade

The random international sanctions on Iran hurt our economy indirectly and we don't acknowledge any such Unilateral moves

Also it is not in our interest to have any Human Humanitarian Crisis in Iran of any kind

Turkey looking at new trade mechanisms with Iran to avoid U.S. sanctions
Reference:
https://www.reuters.com/article/us-usa-iran-sanctions-turkey/turkey-looking-at-new-trade-mechanisms-with-iran-to-avoid-u-s-sanctions-idUSKCN1RT15N

Cavusoglu reiterated Turkey’s opposition to the sanctions and said Ankara and neighboring Iran needed to keep working to raise their bilateral trade to a target of $30 billion, around triple current levels.

“Along with the existing mechanisms, we evaluated how we can establish new mechanisms, like INSTEX...how we can remove the obstacles before us and before trade,” Cavusoglu told a news conference after talks with his Iranian counterpart Javad Zarif.


“What is important here is the solidarity and determination between us,” he added.

France, Germany and Britain have opened a new channel for non-dollar trade with Iran to avert sanctions, dubbed The Instrument In Support Of Trade Exchanges (INSTEX).

Washington’s European allies opposed Trump’s move to abandon the 2015 deal, under which sanctions on Iran were lifted in return for Tehran accepting curbs on its nuclear program.

Iran has threatened to pull out of the deal unless the European powers enable it to receive economic benefits. The Europeans have promised to help companies do business with Iran as long as it abides by the deal.


Cavusoglu did not go into details about the new mechanisms but Turkey has a track record of using national currencies in international trade. In October 2017, the Turkish and Iranian central banks formally agreed to trade in their local currencies after using the euro for settlements in the past.

After reimposing sanctions on Iran, Washington granted waivers to eight nations including Turkey that reduced their purchases of Iranian oil, allowing them to keep buying it without incurring sanctions for six more months.

Presidential spokesman Ibrahim Kalin told reporters in Washington on Tuesday that Turkey expected the United States to extend Ankara’s waiver.

 

[Fawadqasim1]

pakistan iran and turkey should get serious about trilateral defense cooperation.

 

[AZADPAKISTAN2009]

It makes 0% sense we should say no to Cheap oil import from Iran
It makes 0% sense we should say no to Cheap gas from Iran

Why should we lose 5 billion in Sales to Iran just for some foreign body ? Sanctions

 

[AZADPAKISTAN2009]

Iran eager to import meat, livestock from Pakistan: envoy

https://nation.com.pk/28-Feb-2019/iran-eager-to-import-meat-livestock-from-pakistan-envoy

Pakistan and Iran on Thursday discussed matters relating to enhance relations in the field of agriculture between the two countries.


The matter came under discussion when Mehdi Honardoost, Ambassador of the Islamic Republic of Iran called on Minister for National Food Security and Research Sahibzada Mehboob Sultan in Islamabad Thursday.

Both Pakistan and Iran share a geographical border that provides an opportunity to facilitate trade in agricultural products.

There are certain issues in export/import of agricultural commodities between the two sides. Both countries signed an Agreement in 2005 for issuance of SPS Certificate for export of Pakistani mango and citrus to Iran.

The scope of the Agreement was enhanced with the visit of the Iranian Quarantine Experts in 2015 as the number of Hot Water Treatment (HWT) facilities were increased from three to sixteen.

Federal Minister said that both countries share a long border and we should exploit the potentials of this long border and should not miss opportunities which this border offers.

Honardoost told the Minister that that meat and livestock is Iran’s bigger demand and it imports from Latin America and Brazil and it costs them immensely and besides Iran is aware of Pakistan’s potential in the field and is more eager to import from Pakistan.

Sahibzada Mehboob Sultan told the Iranian ambassador that Pakistan has a state of the art meat processing plant in Karachi and it has potential to export to Iran the required quantity of meat and it is fortunately equipped enough to export meat to any country of the world.

The Federal Minister asked the guest that Iranian team could visit the remarkable meat facility in Karachi. It was also proposed in the meeting that through a mutual venture an abattoir could be started at Taftan border for ready and fresh meat through Pakistan.

The matter regarding Punjab Agriculture & Meat Company (PAMCO) was also brought into the notice of Iranian side, Iranian government has 15% to 16% shares of the company and currently no export benefit is secured through the company and Honardoost said that we are eager to talk on every forum at their side to benefit from Pakistan meat.

Federal Minister also proposed that relevant delegation could also meet Punjab agriculture Minister in this regard for further detail of the matter.

Mehboob Sultan told the Iranian ambassador that Pakistani mangoes are exported to different countries across the world up to the satisfaction of importing countries, Iranian reservations regarding hot water treatment plants for mangoes could be removed and suggested that Iranian concerned officials/experts could visit the plants and they would witness that these Plants are working with state of the art technology and mangoes thus exported meet all international standards.

It is pertinent to mention that Pakistan has more than 34 hot water treatment plants and processed fruit is exported as far as to Australia.

The minister suggested that both countries should mutually settle all issues related to Sanitary & Phyto-Sanitary (SPS) measures. And National Plant Protection Organizations (NPPO) of both the countriesshould have frequent collaboration to amicably resolve the quarantine issues to promote bilateral trade.

Federal Minister Mehboob Sultan said that both countries could cooperate in innumerable ways and it is in the best interest of both the countries to enhance their interactions and expand trade volume.

The minister told the Iranian Ambassador that we hope that Iran restarts issuing transit permit(s); (stopped some 3-4 years ago) for Pakistani goods i.e. fodder, wheat straw, carrot and garlic to be exported through Iran to Russia, Kyrgazistan, Iraq, Behrain, Oman and UAE.

These products of Baluchistan were exported through shortest land route through Iran but presently due to the non-issuance of Transit permit to our exporters the goods have to be exported through sea route which is expensive, expansive and cumbersome and due to the complexities involved few exporters even get discouraged.

The ambassador told the minister he will communicate to concerned quarters in this regard. The Iranian Ambassador further said that the Iranian Supreme leader directed that “all the doors should be open for Pakistan.”

He also expressed their side’s desire regarding overseas farming, to which the Honorable Minister said that Pakistan side will look into the matter and if such option is available it would be communicated to the Iran.

Federal Minister Mehboob Sultan said that we could promote bilateral relations through tangible means: trade and business and this will discourage the smuggling through Pak-Iran border; which in turn would benefit both the states. Both the sides expressed their resolve of enhancing exchange of delegations for better understanding and settlement of issues.

 

[Wa Muhammada]

It makes 0% sense we should say no to Cheap oil import from Iran
It makes 0% sense we should say no to Cheap gas from Iran

Why should we lose 5 billion in Sales to Iran just for some foreign body ? Sanctions

I agree with you. Currently the Saudis and Arabs are snubbing us and we should be working out a quick formula to increase our trade with Iran and get cheap oil & gas from our neighbour

Iran eager to import meat, livestock from Pakistan: envoy

https://nation.com.pk/28-Feb-2019/iran-eager-to-import-meat-livestock-from-pakistan-envoy

Pakistan and Iran on Thursday discussed matters relating to enhance relations in the field of agriculture between the two countries.


The matter came under discussion when Mehdi Honardoost, Ambassador of the Islamic Republic of Iran called on Minister for National Food Security and Research Sahibzada Mehboob Sultan in Islamabad Thursday.

Both Pakistan and Iran share a geographical border that provides an opportunity to facilitate trade in agricultural products.

There are certain issues in export/import of agricultural commodities between the two sides. Both countries signed an Agreement in 2005 for issuance of SPS Certificate for export of Pakistani mango and citrus to Iran.

The scope of the Agreement was enhanced with the visit of the Iranian Quarantine Experts in 2015 as the number of Hot Water Treatment (HWT) facilities were increased from three to sixteen.

Federal Minister said that both countries share a long border and we should exploit the potentials of this long border and should not miss opportunities which this border offers.

Honardoost told the Minister that that meat and livestock is Iran’s bigger demand and it imports from Latin America and Brazil and it costs them immensely and besides Iran is aware of Pakistan’s potential in the field and is more eager to import from Pakistan.

Sahibzada Mehboob Sultan told the Iranian ambassador that Pakistan has a state of the art meat processing plant in Karachi and it has potential to export to Iran the required quantity of meat and it is fortunately equipped enough to export meat to any country of the world.

The Federal Minister asked the guest that Iranian team could visit the remarkable meat facility in Karachi. It was also proposed in the meeting that through a mutual venture an abattoir could be started at Taftan border for ready and fresh meat through Pakistan.

The matter regarding Punjab Agriculture & Meat Company (PAMCO) was also brought into the notice of Iranian side, Iranian government has 15% to 16% shares of the company and currently no export benefit is secured through the company and Honardoost said that we are eager to talk on every forum at their side to benefit from Pakistan meat.

Federal Minister also proposed that relevant delegation could also meet Punjab agriculture Minister in this regard for further detail of the matter.

Mehboob Sultan told the Iranian ambassador that Pakistani mangoes are exported to different countries across the world up to the satisfaction of importing countries, Iranian reservations regarding hot water treatment plants for mangoes could be removed and suggested that Iranian concerned officials/experts could visit the plants and they would witness that these Plants are working with state of the art technology and mangoes thus exported meet all international standards.

It is pertinent to mention that Pakistan has more than 34 hot water treatment plants and processed fruit is exported as far as to Australia.

The minister suggested that both countries should mutually settle all issues related to Sanitary & Phyto-Sanitary (SPS) measures. And National Plant Protection Organizations (NPPO) of both the countriesshould have frequent collaboration to amicably resolve the quarantine issues to promote bilateral trade.

Federal Minister Mehboob Sultan said that both countries could cooperate in innumerable ways and it is in the best interest of both the countries to enhance their interactions and expand trade volume.

The minister told the Iranian Ambassador that we hope that Iran restarts issuing transit permit(s); (stopped some 3-4 years ago) for Pakistani goods i.e. fodder, wheat straw, carrot and garlic to be exported through Iran to Russia, Kyrgazistan, Iraq, Behrain, Oman and UAE.

These products of Baluchistan were exported through shortest land route through Iran but presently due to the non-issuance of Transit permit to our exporters the goods have to be exported through sea route which is expensive, expansive and cumbersome and due to the complexities involved few exporters even get discouraged.

The ambassador told the minister he will communicate to concerned quarters in this regard. The Iranian Ambassador further said that the Iranian Supreme leader directed that “all the doors should be open for Pakistan.”

He also expressed their side’s desire regarding overseas farming, to which the Honorable Minister said that Pakistan side will look into the matter and if such option is available it would be communicated to the Iran.

Federal Minister Mehboob Sultan said that we could promote bilateral relations through tangible means: trade and business and this will discourage the smuggling through Pak-Iran border; which in turn would benefit both the states. Both the sides expressed their resolve of enhancing exchange of delegations for better understanding and settlement of issues.

Need to speed this up....we need a framework to speed up these proposals

 

[Maxpane]

would it be barter system?

 

[Hack-Hook]

I agree with you. Currently the Saudis and Arabs are snubbing us and we should be working out a quick formula to increase our trade with Iran and get cheap oil & gas from our neighbour



Need to speed this up....we need a framework to speed up these proposals

Frameworks only make matters complicated what you need is action . I wonder why we import meat from south American country like Brazil while we can import it far easier from the regional country.

 

[AZADPAKISTAN2009]

It would be super easy to make a Animal Market near Iran/Pakistan border , and allow Iranian Trucks to Enter Pakistan , load up the animals after purchase and move it over to Iran

 

[CrazyZ]

Pakistan needs new over land markets to increase exports. Below is a population density map of the Middle East:

The north western portion of the ME is the most populated with multiple large cities (Tehran, Baghdad, Baku, Ankara, Izmir, Istanbul). Iran is the key overland route to allow this interconnection for Pakistan. Turkey, Iraq, Azerbaijan and western Iran would be the target markets. This could extend out to include Syria, Jordan, and Lebanon as well....even Russia. Lets the silk road started up again.