Photo: Reuters

KARACHI: Iran on Saturday expressed interest in joining the China-Pakistan Economic Corridor (CPEC) as the $60 billion worth of Chinese-funded project enters into next phase of industrial and agriculture cooperation, reported The News.

Iran's Commercial Attache to Pakistan, Morad Nemati Zargaran, who was leading a delegation which visited Karachi Chamber of Commerce and Industry (KCCI) said CPEC was essential and opened up huge opportunities for both the countries.

“Iran wants to become part of this project which would surely ensure prosperity in the entire region,” Zargaran said.

The Iranian envoy, according to the report, said the business communities of the two countries should meet more frequently to improve their contacts and hold exhibitions which would help in improving bilateral trade and investment.

Zargaran assured his full support and cooperation to the business community for the improvement of trade activities and said steps have to be taken to deal with the barriers hindering smooth trade between the two countries. “High customs duties need to be brought down to encourage legal trade and discourage smuggling,” he said

“Formal banking channel between the two countries has to be activated which is widely being demanded by the business communities of the two countries since quite some time now,” Zargaran added.

Vice President KCCI Shahid Ismail said bilateral trade remains low and Pakistan and Iran must make collective efforts to explore new avenues.

“It has always been KCCI’s struggle to promote bilateral trade and the chamber has a very positive approach towards improving trade ties particularly with neighbouring countries,” Ismail said.

He added the bilateral trade was much less than the potential as Pakistan’s exports to Iran stood at a mere $330.2 million in 2018, while imports were around $1.247 billion.

Ismail said negotiations on free trade agreement (FTA) between Islamabad and Tehran are underway. Both the countries have shared their desire of upgrading preferential trade agreement into FTA for which initial drafts have already been shared.

Both the countries have already signed a memorandum of understanding (MoU) through which channels would be opened in the central banks of both the countries for trade transactions that would reduce the usage of dollar account for the letter of credit clearance.

He also underscored the need to sort out infrastructural constraints to enhance bilateral trade via Quetta-Taftan land route.



“Regular operation of ECO (Economic Cooperation Organisation) container train will lend impetus to cargo and transit facilities between the two countries,” he added.

Originally published in The News