Pakistan, Iran set $5 billion bilateral trade target by 2023

Iran trade

Pakistan and Iran are going to take measures to expand the annual bilateral trade exchanges to $5 billion by the year 2023. 

“It has been agreed that hurdles and problems facing the free trade (agreement) between the two countries are removed within the next three months.” said Iranian Minister of Industry, Mines and Trade, Reza Fatemi Amin after meeting with senior Pakistani officials, led by Abdul Rezak Dawood, the advisor to the Pakistani Prime Minister.   

In a press release, issued by the Ministry of Commerce, it was said, “Understanding of new trade was reached during the ninth meeting of Iran-Pakistan Joint Trade Committee held in Tehran on Saturday.”

Read more: Iran, Pakistan agree to expand security ties, help establish peace in Afghanistan

During the meeting with the Pakistani delegation, the Iranian Minister said that both the countries were determined to expand annual trade exchanges. The two countries have agreed to take measures to expand the annual trade exchange to $5 billion by 2023.  

Meanwhile, Reza Fatemi Amin said that both the countries are determined to expand the bilateral economic relations and Iran was ready to remove obstacles in the way of developing trade exchange with Pakistan in a bid to enhance economic ties with the neighboring countries. Both the sides agreed to peruse the issue such as free trade agreement between the two countries along with organizing the trade fairs.  

Senior Iranian and Pakistani officials along with the businessmen and bankers of both sides attended the top-level meeting in Tehran. Abdul Razak Dawood offered to expand the trade in the areas of transportation, increase the barter trade, build a joint border market and reduce the tariffs. Iran and Pakistan have already made plans and agreements on strategic cooperation.  

Pakistan’s delegation leader said, “I express the hope that necessary steps will begin from today.” IRNA, the Iranian news agency told that the Iranian Minister of Industry said that Tehran and Islamabad had planned to cooperate in the fields of home appliances and dairy.  

The Iranian minister said that despite two important countries of the region, the two countries could not use their economic potentials. The Preferential Trade Agreement (PTA) was signed between Pakistan and Iran in 2006. Tariff concessions were granted to Iran on 309 tariff lines and Pakistan was granted the concession of 338 tariff lines.  

The main areas, covered under PTA were rice, fruits, cotton, cotton yarn, pharmaceutical, and cutlery. But Pakistan has lesser trade with Iran and only 63 percent of exports to Iran consist of rice only.   

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