TEHRAN (IRNA) – The Iran-Kyrgyzstan Joint Economic Committee started 8th session here on Saturday attended by two of the countries' senior officials.

Iranian Commerce Minister Masud Mir-Kazemi and Kyrgyz Minister of Economy and Finance Akylbek Japarov held talks preparatory to the signing of a memorandum of understanding for expansion of bilateral economic and commercial cooperation.

Representatives of Iran and Kyrgyzstan are scheduled to sign the MoU at the end of the three-day session on Monday (August 21).

Mir-Kazemi expressed Iran's willingness to bolster trade and economic cooperation with Kyrgyzstan, saying "Tehran will be a good partner for Bishkek thanks to its great potentials in various industrial activities such as the manufacture of automobile and machineries, foodstuff and mine exploitation. "Iran also enjoys appropriate potential in the technical and engineering sectors, parts of which are implemented by Commonwealth of Independent States (CIS) based on previous agreements. Kyrgyzstan can also make use of such potentials."

Pointing to factors behind the expansion of bilateral economic relations between Tehran and Bishkek, he called for signing of a joint agreement to facilitate banking cooperation between the two sides.

He said that granting of credit facilities to exporters and signing of an agreement on goods included in existing preferential tariffs would prepare an appropriate ground for exchange of commodities produced by the two countries.

The Iranian minister stated that an agreement between the two sides on expansion of customs cooperation would settle problems in the way of export of certain goods.

He cited transportation as among factors that would help the sides expand economic cooperation, and called for facilitation of exchange of passengers and businessmen, removal of transportation obstacles and facilitation of issuance of visas to businessmen of either country.

Mir-Kazemi noted that encouragement given to the private sector to invest in the opposite country and support for investment would play a great role in bolstering mutual ties.

He said lack of knowledge of each other's potentials is among the factors behind the low level of bilateral economic cooperation, adding that holding of exhibitions and exchange of trade delegations can help resolve the problem.

He called for establishment of a joint commercial council between the Chambers of Commerce of Iran and Kyrgyzstan.

The Iranian minister also stressed the importance of promoting insurance cooperation between the Export Guarantee Fund of Iran and Kyrgyzstan and called for expansion of ties in various scientific, cultural and educational fields.

Kyrgyzstan's private sector can invest in Iran, he said, adding that removal of certain tax exemptions can be effective in bolstering ties between Tehran and Bishkek.

He said Iran and Kyrgyzstan can increase their volume of trade and economic exchanges through establishment of joint venture companies in different fields.

Japarov, for his part, pointed to economic reforms undertaken in his country and stressed the importance of paving the ground for expansion of trade and economic ties.

Currently, Iranian investors are active in Kyrgyzstan, he said.

The Kyrgyz minister added that the volume of trade exchanges between the two countries stood at $10 million in 2005.

He said the sides increased their volume of trade exchanges during the first six months of 2006 to $10 million.

He expressed hope the volume of trade exchanges between Tehran and Bishkek would reach $200 million.

Japarov called for the transfer of Iranian technical and engineering services to his country.

Pointing to the significance of importing tar and its products from Iran, he hoped the sides would sign and implement new agreements with respect to current regulations.