Trade between Iran and the Economic Cooperation Organization’s member states reached 6.31 million tons worth $4.34 billion in the current fiscal year’s first quarter (March 21-June 21), data released by the Islamic Republic of Iran Customs Administration show.
Turkey was Iran’s main trade partner among the countries under review with 3.77 million tons worth $3.01 billion. It was followed by Pakistan with 872,316 tons worth $474.98 million and Afghanistan with 677,821 tons worth $371.703 million.
Iran’s exports to ECO members stood at 5.19 million tons worth $2.75 billion during the period.
Turkey with 3.07 million tons worth $1.74 billion, Afghanistan with 674,047 tons worth $367.34 million and Pakistan with 649,226 tons worth $279.38 million were the top export destinations.
Imports hit 1.13 tons worth $1.6 billion in Q1.
Turkey was also the main exporter to Iran with 700,238 tons worth $1.27 billion. It was followed by Pakistan with 223,090 tons worth $195.6 million and Kazakhstan with 160.058 tons worth $65.7 million.
Trade between Iran and ECO rose more than 43% to stand at 30.87 million tons worth $16.79 in the fiscal 2021-22. Iran’s exports stood at 26.42 million tons worth $10.85 billion. Imports from ECO members hit 4.45 million tons worth $5.94 billion.
The Economic Cooperation Organization is an Asian political and economic intergovernmental organization, which was founded in 1985 in Tehran by the leaders of Iran, Pakistan and Turkey. It provides a platform to explore ways of improving development and promoting trade and investment opportunities.
Iran-Turkey Trade Target Set at $30b
Iran and Turkey have agreed to extend their gas supply contract for another 25 years and set an ambitious trade target of $30 billion, Anadolu Agency reported.
The agreements came during a recent meeting between Iranian President Ebrahim Raisi and his Turkish counterpart Recep Tayyip Erdogan in Tehran last month.
In his remarks at a joint presser with Erdogan after delegation-level talks, Raisi said the Turkish president’s visit to Tehran marks an "important turning point" in improving the level of cooperation between the two neighboring countries.
Raisi stressed that the level of trade and economic ties between Tehran and Ankara was not enough and can be moved to a higher level, adding that the $30 billion target of trade volume is achievable.
In the presence of the two presidents, Iran and Turkey signed eight memoranda of understanding in political, economic, sports and cultural fields after bilateral talks.
According to a statement by the president's office, the agreements signed between the two sides include a comprehensive plan for long-term cooperation, support for small economic enterprises, radio and television collaboration, and exchanges between government departments.
The visit is the first by the Turkish president to Tehran since the formation of the new government in Iran last year.
The two leaders had met on the sidelines of the ECO Summit in Turkmenistan last November where they agreed on "comprehensive improvement of ties”.
Besides bilateral talks, Erdogan took part in trilateral talks with Raisi and Russian President Vladimir Putin in the Astana Format.
The agreement to boost trade ties came shortly after Iran’s Leader Ayatollah Ali Khamenei said in his meeting with the Turkish president that there was scope to expand economic ties between the two countries.
The target of a $30 billion trade volume was originally set between the two countries before the US reimposed sanctions on Iran in 2018.
Raisi expressed hope that the strategic cooperation document signed between the two sides on Tuesday will contribute to the "consolidation of bilateral relations".
He said the two sides also agreed on the development of industrial towns and science and technology parks with the help of knowledge-based industries.
The Iranian president further said the two sides discussed border security cooperation, stressing that the security and intelligence bodies of the two countries can work together in bolstering security and fighting terrorism, narcotics and organized crimes.
The two sides, he added, also discussed regional issues of common interest and emphasized that the two nations must fight terrorism that threatens their security.
He said terrorism may have different names but it endangers the security of the region and must be taken into consideration.
Raisi stressed that good bilateral relations can lead to "better regional and international relations" and both countries could help bolster regional and international security.
ECO’s ITI Road Corridor Activated
A ceremony was held on Oct. 8 last year at Murat Bey Customs Post in Istanbul, Turkey, to mark the arrival of the first two of Pakistan’s National Logistics Company trucks carrying goods from Pakistan to Turkey, via Iran, under the Transports Internationaux Routiers Convention.
The NLC trucks departed from Karachi on Sept. 28 and reached Istanbul on Oct. 7, covering a distance of 5,300 kilometers, Pakistan Observer reported.
The ceremony was attended by senior officials of the Turkish Ministry of Transport and Infrastructure, Ministry of Trade, Chamber of Commerce and Commodity Exchanges, as well as the International Road Transport Union, ECO Secretariat and Iran’s Ministry of Roads and Urban Development.
Members and representatives of the Turkish private sector active in transportation sector and representatives of NLC and Pakistan’s Ambassador to Turkey Muhammad Syrus Qazi, accompanied by representatives of Pakistan’s Embassy and Consulate, participated in the ceremony.
Umberto de Pretto, secretary-general of IRU, based in Geneva, Switzerland, also attended the ceremony.
The participants hailed the development as a vital step in promoting connectivity and enhancing trade between Pakistan and Turkey.
Ambassador Qazi highlighted the government of Pakistan’s focus on geoeconomics and how regional connectivity was crucial in this regard.
He hailed the trial run of NLC trucks as a major step in strengthening road connectivity between Pakistan and Turkey, and promoting bilateral trade.
The ambassador noted that operationalization of this road link will help reduce transportation cost and time. Reviving the Islamabad-Tehran-Istanbul road transport corridor will generate revenue, boost trade and increase economic cooperation among ECO member states.
After the initial successful run, NLC intends to increase and regularize the transport of goods between Pakistan and Turkey, helping bring the two countries closer.
Javad Hedayati, director general of Transit Affairs Bureau of Road Maintenance and Transportation Organization of Iran, says the ITI Corridor can easily replace the Suez Canal route.
“ECO’s ITI transportation corridor holds huge potential. For one thing, transportation time between Istanbul and Pakistan is reduced to 10-12 days from 25-30 days [through the Suez Canal]. The corridor will also reduce transportation costs by 30%,” he was quoted as saying by the news portal of the Ministry of Roads and Urban Development.
According to the official, transportation costs rose dramatically in the wake of the Covid-19 pandemic.
“This has made road freight transport even more cost-effective. Today, there is a great opportunity for us to use our transit corridors, ITI in particular, to their full potential,” Hedayati said.
Rail Cargo Services Resume After 10 Years
Resuming operations after 10 years, the first Islamabad-Tehran-Istanbul train carrying goods from Pakistan to Turkey via Iran rolled into the Turkish capital Ankara earlier this year.
The ITI cargo train started its journey from Islamabad on Dec. 21, 2021, and arrived in Ankara after 13 days. Turkey's Transport and Infrastructure Minister Adil Karaismailoglu, Pakistani parliamentarian Makhdoom Zain Hussain Qureshi and Iranian Ambassador to Turkey Mohammad Farazmand attended a ceremony to mark the arrival of the train, Daily Sabah reported.
Departing from Margalla Station in Islamabad, the train embarked on its 5,981-kilometer (3,666-mile) route, arriving in 12 days and 21 hours. The cargo train aims to boost trade among Pakistan, Iran and Turkey. The train had eight loaded wagons, 20 feet (6 meters) in length, each with a capacity of 22 tons.
Karaismailoglu in his speech said the new railroad will offer another option to industrialists and businesspeople on the Pakistan-Iran-Turkey route.
"It will save time and cost compared to sea transportation between Pakistan and Turkey, which takes 35 days, and will lead to the development of trade between the two countries," he said.
"With the Islamabad-Tehran-Istanbul train, a new railroad corridor will be provided to our exporters in South Asia, which has the highest population density globally, reaching Pakistan, neighboring India, China, Afghanistan and Iran. In this way, our country will be one step closer to its goals of becoming a bridge and logistics base between Asia and Europe," Karaismailoglu added.
Speaking at the ceremony, Qureshi noted that the ITI train would play an important role in enhancing regional connectivity and promoting economic and commercial activities in the ECO region.
Iran, Pakistan and Turkey established the Regional Cooperation for Development Organization in 1964, renaming it ECO in 1985.
The Pakistani parliamentarian noted that the train would offer Pakistan an opportunity to further increase exports and strengthen its connectivity with international markets, including in Europe.
"The current government in Pakistan believes in regional connectivity and we feel that to play a role at the national stage, we need to be economically reliable. In order to do that, we need to not only have peace in our region but also increase trade within our neighborhood and the ITI project will become a friendship project," Qureshi told Anadolu Agency in an interview.
"We get access to European markets and Turkey gets access to Central Asian states so it is a mutually beneficial arrangement and I hope it will be sustainable and we can grow from it further.”
The Iranian ambassador in his speech explained that the ITI railroad project was first launched in 2009 under ECO, but remained suspended due to technical issues, restarting a decade later.
“The three countries also plan to launch a passenger train along the same route in the near future,” he said.
The first train from Islamabad to Istanbul was inaugurated on Aug. 14, 2009. Since then, eight trains have been dispatched from Pakistan to Turkey. The country has also dispatched six trains to Pakistan, but the train service was discontinued due to floods in the South Asian nation in 2009.
