August 23, 2024 (MLN): Pakistan imported $5 million worth of LPG, motor oil, and similar products from various countries last year, which could instead be produced domestically through joint ventures with Iranian companies, emphasized Reza Babak Afghahi, Chief Executive of Ta’min Petroleum & Petrochemical Investment Company (TAPPICO) of Iran.
He highlighted the importance of strengthening trade ties between the two countries and called for reducing unofficial trade to zero by fully supporting and promoting official trade channels.
He noted that a lot of Iranian products were arriving here but most of them were landing in the Pakistani markets via unofficial channels which was the basic reason why an Iranian delegation was here so that
Referring to his discussions during several meetings of Iranian delegations with Pakistani counterparts, he said that sanctions on Iran were mostly highlighted during all these meetings which should not be a matter for business community as most of the sanctions imposed on Iran were political.
“One fine example, in this regard, is that despite sanctions, Iran has exported goods worth US$200 million to United States”, he added while advising the business community not to worry about sanction as ways can easily be explored for carrying out businesses.
He stressed that Iran and Pakistan, being friendly and brotherly countries, have to make serious efforts to enhance the existing official trade between the two countries.
He said that Iran was ready to share its raw materials, knowledge, expertise and engineers which would create more employment and business opportunities in Pakistan.
“Instead of providing finished goods, it’s better we provide raw materials to Pakistan so that you could finalize the product by adding value and subsequently, utilize it either for domestic consumption or exports”, he added.
Earlier, President KCCI Iftikhar Ahmed Sheikh, while warmly welcoming members of Iranian delegation, said that despite excellent brotherly relationships, the bilateral trade volume was below its full potential which needs to be enhanced to its true potential of around $10 billion.
“Both countries must reduce trade barriers, streamline customs procedures, improve the ease of doing business, and support SMEs, to boost exports & deepen economic integration between the two countries.”
He pointed out that the absence of a formal banking channel was one of the key stumbling blocks which needs to be resolved to give a boost to trade and bilateral exports between the two countries whereas swift finalization of FTA and establishment of a joint free zone, supported by both governments, will stimulate bilateral investment and boost economic integration between the two countries.
He stressed that collaboration between Pakistan and Iran will not only help in overcoming energy and economic needs but also support greater regional connectivity, economic stability and prosperity.
“It is crucial to engage in joint ventures, technology exchange, and capacity-building initiatives to enhance energy cooperation between the two nations and explore opportunities to diversify trade beyond existing strengths”, he added.
Underscoring the need to enhance connectivity and invest in infrastructure development by establishing border markets and expanding rail & road networks, he said that these measures would strengthen cross-border economic cooperation and help in tackling illegal border trade which would, in turn, boost formal trade between the two countries.
He also invited Iranian investors to take advantage of available business opportunities in China-Pakistan Economic Corridor (CPEC) through investments and joint ventures in 9 special economic zones, offering huge incentives to foreign and domestic investors.
Copyright Mettis Link News
Posted on: 2024-08-30T16:03:51+05:00
