A Pakistani delegation, led by the federal minister of national food security and research, will leave for Iran soon to meet Iranian authorities for removing hurdles in the way of agricultural export.
The visit was planned after a recent brainstorming session among officials of the Pakistani ministries of commerce and food security, State Bank of Pakistan and Federal Board of Revenue following the lifting of western sanctions against Iran, Pakistani newspaper The Express Tribune reported.
According to Pakistan’s Ministry of Commerce, most of the country’s agricultural products have a good market in Iran, but the Iranian Agricultural Ministry is reluctant to issue permits to importers. The delegation is expected to discuss the possibility of rice exports as the commodity is hugely popular in Iran and Pakistan has a surplus produce.
Pakistan’s exports to Iran was worth $400 million in 2008-09, but declined in the face of additional sanctions on Iran and next year shipments dropped by 100% to $200 million. Since then, exports have been falling rapidly and in 2013-14 stood at just $53 million.
Pakistani exporters have cited the absence of payment mechanism due to restrictions on banking channels as the primary factor behind the falling trade.
