Why is Iran-Pak trade 10 times less than Iran-India trade?

[Deaths Head Division]

In April 2017- Feb 2018, Pakistan Iran trade was $1.176 billion, so for the 12 month financial year total trade value would be $1.3 billion.

In same year span, India-Iran trade was $13.7 billion;

Also unlike India, Pakistani banks and insurance companies have not setup alternate payment mechanism for US sanctions fear.

The absence of a credible payment mechanism remains the major irritant in the way of Pakistan-Iran trade.

International sanctions, particularly those imposed by the US and European Union in 2010, targeted Iran’s banks. The sanctions prevented Pakistani banks from doing business with their Iranian counterparts including the opening of letters of credit (LC), which is the most credible method for carrying out international trade transactions.

Why is this the case even though Iran & Pak are neighbours?

 

[El Sidd]

Iran and India have civilisational ties.

 

[BHarwana]

This is because India buys oil from Iran. Pakistan Iran non oil trade is higher than India.

 

[Gadkari]

Oil purchase is paid in INR. This INR is then used to buy Indian goods.

As simple as that.

 

[BHarwana]

Oil purchase is paid in INR. This INR is then used to buy Indian goods.

As simple as that.

Iran left Indian rupee after P5+1 deal. Now India pays $s.

After August 6 India will end oil purchase from Iran.

 

[kaykay]

This is because India buys oil from Iran. Pakistan Iran non oil trade is higher than India.

Nope. Indo-Iran non oil trade was 5 billion USD last year.

 

[Gadkari]

Iran left Indian rupee after P5+1 deal. Now India pays $s.

After August 6 India will end oil purchase from Iran.

45 percent of the payments was always in Indian rupees.

 

[BHarwana]

Nope. Indo-Iran non oil trade was 5 billion USD last year.

Thread is all yours carry on with fantasy. I just needed to add the real back end story.

 

[kaykay]

Thread is all yours carry on with fantasy. I just needed to add the real back end story.

Well "Pakistan Iran non oil trade is higher than India" is fantsay not other way around. ROFL!!!

 

[$@rJen]

Iran left Indian rupee after P5+1 deal. Now India pays $s.

After August 6 India will end oil purchase from Iran.

care to provide with the details for your claim about trade of non-oil being higher for pakistan.

And no after August the amount of import will be reduced not cut off 100%.

 

[randomradio]

Pakistan failed to create alternate arrangements.

https://tribune.com.pk/story/168085...payment-mechanism-pakistan-loses-iran-market/

 

[Zulfiqar1919]

When Iran is under attack from America, Israel and KSA, they better not come begging Pakistan for help.

 

[Islamic faith&Secularism]

Someone else has discovered and revealed the truth hidden behind the key word ''Islamic'', the rest still waiting to be discovered and revealed tho.

 

[Max]

When Iran is under attack from America, Israel and KSA, they better not come begging Pakistan for help.

No one is begging.

 

[AyanRay]

When Iran is under attack from America, Israel and KSA, they better not come begging Pakistan for help.

If Pakistan gets a few million dollars they will allow its land to be used by USA to attack Iran.