TEHRAN- The Commercial and Investment Attaché of Pakistan in Iran, during a meeting with the Vice President for International Affairs and Trade Development of the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA), and the Commercial Attaché of Iran in Pakistan, exchanged views on new cooperation avenues and emphasized expediting the implementation of the barter mechanism and removing trade barriers between the two countries.

In this meeting, the Commercial Attaché of Iran in Pakistan provided a report on the latest developments in trade exchanges and the process of advancing the barter mechanism between the two countries.

At the beginning of the meeting, Hossamuddin Hallaj, Vice President for International Affairs and Trade Development of the Tehran Chamber, referred to the history of cooperation between the Chambers of Tehran, Karachi, and Lahore, as well as the exchange of delegations between the private sectors of the two countries over the past years.

He stated: "The trade value between the two countries has reached $3.3 billion for the first time in history, which is promising. To achieve the target of $10 billion in trade between Iran and Pakistan, the Tehran Chamber can arrange various programs, including the exchange of business figures between the two countries, participation in each other's events, and holding business matchmaking sessions for Iranian and Pakistani merchants to foster familiarity, data exchange, and exploration of cooperation areas."

He also spoke about the possibility of forming consortiums comprising Iranian and Pakistani companies to implement projects and conduct barter between the two countries, adding: "Iran and Pakistan have placed the compilation of a list of goods suitable for barter between the two countries on their agenda, and expediting the finalization of this list can accelerate the increase of trade exchanges between the two countries."

Furthermore, Hallaj, referring to the upcoming "Iran Mod" exhibition in December this year, requested the Commercial and Investment Attaché of the Pakistani Embassy in Iran to arrange for the dispatch of delegations comprising Pakistani apparel and textile sector activists to visit this exhibition.

Possibility of joint investment in apparel sector

During the meeting, Amina Javaid, Commercial and Investment Attaché of the Pakistani Embassy in Iran, emphasized the removal of trade restrictions between the two countries, stating: "The Iranian side has not yet announced the list of goods suitable for barter between the two countries, and it is expected that this list will be finalized as soon as possible so that business actors can be informed of the facilities intended to govern trade relations between the two countries."

The Commercial and Investment Attaché of the Pakistani Embassy in Iran also pointed out that Iran's protective policies regarding domestic production make the process of forming preferential and free trade between the two countries difficult.

She continued by mentioning that she had proposed the formation of a joint committee in the field of transportation and expressed the readiness of the Pakistani side to form a corresponding consortium in Karachi, adding: "The purpose of forming these consortiums is that at least two selected and trustworthy consortiums begin work to implement barter before a public call is issued."

The Commercial and Investment Attaché of the Pakistani Embassy in Iran also referred to the regular meetings of Pakistani customs and executive bodies for the operationalization of the barter mechanism and expressed hope that with the finalization of the barter mechanism by Iran, the flow of trade exchanges between the two countries would accelerate, and the remaining issues would be resolved through joint committees.

She then pointed to some Iranian trade restrictions on the import of certain goods, including ready-made garments, and while emphasizing the removal of these restrictions, stated that joint investment in the apparel sector is also possible.

Goods barter between Iran and Pakistan in the form of a consortium

During the meeting, Morad Ne'mati Zargaran, Commercial Attaché of Iran in Pakistan, explained the latest status of the formation of the barter mechanism between the two countries, noting that given the negotiations, the Pakistani side has finalized the cooperation issue.

He stated, "The cooperation structure should be in the form of a consortium, and individual or bilateral action is not considered by the counterpart," adding: "Forming a consortium facilitates the implementation process and will prevent potential problems along the way. Furthermore, consortium members are obliged to accept commitments jointly and severally. This increases the counterpart's confidence and guarantees the proper fulfillment of commitments. In fact, a cohesive team is formed that will have the ability to manage and fully advance the project."

Ne'mati continued: "The proposal is to form a domestic consortium as a pilot, and on the other side, with the coordination carried out, a similar consortium will be formed so that these two structures connect. The presence of reputable and well-known figures in this mechanism provides the grounds for gaining the trust of the foreign party."

MA