ISLAMABAD: Pakistan and Iran agreed Tuesday to expedite negotiations on a long-awaited free trade agreement, with officials from both countries stressing the need to conclude the pact quickly to boost bilateral trade, according to reports.
Officials Reaffirm $10 Billion Trade Target
The 10th Pakistan-Iran Joint Trade Committee meeting was held in Islamabad under the joint chairmanship of Commerce Minister Jam Kamal Khan and Iran’s Minister of Industry, Mine and Trade, Mohammad Atabak, according to an official statement issued Tuesday.
The two countries reaffirmed their commitment to raising bilateral trade volume to $10 billion.
Speaking at the meeting, Jam Kamal said the time had come to transform the historic relationship between Pakistan and Iran into a strong economic partnership, and he emphasized the need to finalize the free trade agreement as soon as possible.
He said removing barriers to border logistics, customs and cargo movement was imperative, adding that establishing joint border markets and electronic data interchange systems would significantly increase bilateral trade. He said the private sectors of both countries were ready for trade and that it was the responsibility of the two governments to provide a conducive and reliable business environment.
Jam Kamal said the 10th committee meeting would chart a practical roadmap and elevate economic cooperation between the two countries.
Atabak, for his part, described Pakistan as Iran’s long-term strategic trade partner and expressed a desire to enhance regional trade and logistics cooperation through the ports of Karachi and Gwadar. He also expressed hope that the free trade agreement would be finalized soon and pointed to electricity trade and regional connectivity as new economic opportunities for both countries.
The two sides reaffirmed their commitment to further promoting cooperation in trade, investment, connectivity and the private sector. Officials said the meeting reflected the shared commitment of both countries to deepen their economic partnership, enhance regional connectivity and create new opportunities for trade and investment.
Tuesday’s meeting was the 10th session of the Joint Trade Committee since the body was established. The ninth meeting was held in Tehran from Nov. 6-7, 2021.
Pakistan and Iran have maintained a bilateral preferential trade agreement since Sept. 1, 2006. Under that agreement, Pakistan has granted tariff concessions to Iran on 338 tariff lines, while Iran has extended concessions on 309 tariff lines, with average tariff concessions of around 18%. However, due to Iran’s more restrictive tariff regime, duties applied on Pakistani exports remain significantly higher than those imposed on Iranian exports to Pakistan.
