61986
Iranian President Hassan Rouhani (L) shakes hands with Pakistani Prime Minister Nawaz Sharif in Islamabad. (File Photo)
Economy, Domestic Economy

Iran-Pakistan Trade on the Decline

Trade between Pakistan and Iran is at the lowest ebb, as Pakistan’s exports alarmingly plunged to $318 million in 2015-16 from $1.32 billion in 2008-09, confirming that the Preferential Trade Agreement between the two neighboring countries is no more functional.
Pakistan’s imports from Iran stand at about $280 million, a senior Pakistani official at Economic Affairs Division told The News.
Iran, which is the immediate neighboring country, has the trade volume of $18 billion with India even in the presence of US sanctions, raising eyebrows as to why Pakistan could not manage to keep trade with Iran at a reasonable level. Most trade between Iran and India is based on barter system and this model has failed in the case of Pakistan.
Top Pakistani decision-makers have decided to initiate trade diplomacy with Iran and to this effect, both countries are going to hold crucial talks in the meeting of Joint Economic Commission to be held on April 17-18. Commerce Minister Khurrum Dastgir will lead Pakistan’s side.
Pakistani banks still shy away from carrying out transactions with Iranian banks. The absence of banking channels is the single largest obstacle to enhancing the trade.
Nonetheless, State Bank of Pakistan and the Central Bank of Iran are also in talks for payment arrangements through banking channels.
The Preferential Trade Agreement stipulates that Pakistan extends tariff concessions to Iran over 320 tariff lines and Tehran grants concessions on 309 tariff lines.
Pakistan alleges that the PTA is being flouted by Iran by increasing unilateral tariffs on Pakistan products, saying Tehran has increased tariff on textile and clothing by up to 121%. It has also imposed the increase in import duty on leather, footwear, fruits, vegetables and rice.
According to the Pakistani side, Iran has slapped about 90%% duty instead of 44% duty agreed in PTA on Pakistani kinnow while it has maintained a ban on fruit imports from Pakistan since 2012.
Iran has yet to react to the Pakistani allegations.
Last year, Iranian President Hassan Rouhani visited Pakistan in March and agreed on a five-year strategic trade expansion plan with the aim of promoting bilateral trade to reach $5 billion.

Short URL : https://goo.gl/LICM7x
  1. https://goo.gl/YeJahq
  • https://goo.gl/BbSwll
  • https://goo.gl/W7xBxg
  • https://goo.gl/dzkiE8
  • https://goo.gl/5B2vwJ

You can also read ...

Apple Moves to Store iCloud Keys in China
When Apple Inc begins hosting Chinese users’ iCloud accounts...
Continued Action to Improve the Situation With FATF
Following the Financial Action Task Force’s latest decision,...
Iran-Denmark Trade Tops 11% in 2017
Iran exported close to €10 million worth of commodities to...
Total residential deals registered during the 11 months to Feb. 19 equaled 168,933, which indicate an increase of 12.8% compared with the same period last year.
The total number of housing deals in Tehran reached 18,400...
Iranian Knowledge-Based Firm to Produce Anesthesia Machines
A knowledge-based company located in Pardis Technology Park...
Business Delegation to Visit Albania, Macedonia
An Iranian business delegation led by Chairman of Iran Chamber...
Decoding Iran’s High Savings Trend
In a sample of 25-odd developing countries that make up...
INSIG Workers to Receive Delayed Payments by March 20
Iran National Steel Industrial Group’s workers will receive...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus