KARACHI (APP) -- Despite Pakistan and Islamic Republic of Iran share borders and religious values, the volume of trade between the two countries is insignificant as compared with the potential available, says President FPCCI Sultan Ahmed Chawla.

Pakistani Ambassador to Islamic Republic of Iran, M.B. Abbassi during his visit to Federation of Pakistan Chambers of Commerce and Industries (FPCCI) here on Tuesday discussed with elected officials of FPCCI discussed matters of mutual interest, especially relating to promotion of trade and investment relations between the two countries.
President FPCCI, Sultan Ahmed Chawla said the volume of trade is just dollars 573 million, of which the share of exports were approximately dollars 219 million and imports dollars 552 million.
He questioned how can we do business and be competitive if the prices of inputs are gone sky rocketing high , especially electricity charges and mark-up rates.
He hoped that the Ambassador would work to find new avenues of cooperation between the two countries for improving trade relations.
On his own behalf and that of the business community, he expressed full confidence in the abilities of the Ambassador in further strengthening trade and investment ties between the two countries.
He emphasized that we need to set priorities and the government must provide facilities and incentives to bring down the cost of doing business to be competitive in international market.
Chawla appreciated Iran’s gesture in supplying 30 barrel crude oil per day to Pakistan on deferred payment for 90 days, and thus the volume of trade is expected to cross $ 2.0 billion by the end of current fiscal year.
Tariq Sayeed, President SAARC Chamber of Commerce and Industry, Chairman Pak-Iran Business Council and Former President FPCCI stated that the government should give attention and put priorities in its policy to boost regional trade. What we could not achieve through bi-lateral trade with country, such as Iran and India, we could penetrate these markets for successful economic and trade cooperation with our active role and participation in Regional Economic Blocs, such as SAARC, OIC, ECO etc.
Under FTA, member countries of these blocs phase out tariffs and thus liberalize trade. FTA is intended to act as a catalyst for increased regional integration and to facilitate trade and investment flows within the region.
He emphasized that for enhancing bilateral trade, we must do target mapping and set short term goals. In this respect, he suggested that both Pakistan and Iran should use all the four economical and traditional mode of transportation in an efficient manner, cross-border trade should be supported and promoted, services of buying agents should be availed to work as a bridge between an importer and exporter for smoothen their sourcing/buying process from Pakistan, government should ensure private sector participation in all Joint Ministerial Meetings, Pakistan Embassy should play a pivotal role in regularly organizing Single country Exhibition for marketing and exposure of products, with sale permission, singing of FTA with Iran and Joint Business Council meeting should be organized every year.
He said periodical evaluation should be done to ascertain the problems and progress on trade and economic development between the two countries.
S. M. Munir, President, Indo-Pak Chamber of Commerce and Industry and Former President, FPCCI suggested that concrete and result-oriented measures should be taken by the government through facilitating cross border trade and infrastructure development for easy transportation of goods to improve and enhance bilateral trade relations.
Zubair F. Tufail, Former Vice President, FPCCI said that the main hurdle in the way of bilateral trade is Pakistani Banks, which are not opening L.Cs in view of sanction to Iran. He inquired how India, Turkey and some EU Countries are doing trade and business with Iran under sanction if their Banks are not opening L.Cs.
He, therefore, under scored the importance of opening Banking channel for smooth business transactions.
The meeting agreed that Pakistan should upgrade Railway lines, build its road network and RCD highway to help realize an envisioned transport corridor to Iran and the Central Asian Republics for exploring their potential markets, Open Banks in Iran and vice versa, should take frequent trade delegation to Iran, diversify export products, hold single country exhibition, conclude and sign agreement with Iran on gas pipe line at the earliest, as Pakistan has gas reserves for four years only as well as sign an agreement to generate electricity.
Sultan Ahmed Chawla expressed his strong interest in strengthening trade relations with Iran and hoped that Pakistani Ambassador to Islamic Republic of Iran M.B. Abbassi would play an important role to expand trade and investment ties between the two brotherly countries. He assured him of his full support in achieving his goals and wished him every success in his endeavors.
M.B. Abbassi thanked Mr. Sultan Ahmed Chawla, Mr. Tariq Sayeed and all his colleagues for the confidence reposed in him, and assured them of his all out support in the promotion of trade and economic relations between the two countries.