Sep 14, 2021, 7:15 PM
Journalist ID: 2053
News Code: 84471193
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Barter trade termed effective mechanism to counter sanctions, boosting Iran, Pakistan trade

Islamabad, IRNA -- The Ambassador of the Islamic Republic of Iran to Pakistan says Iran gives priority to enhancing relations with its neighbors adding that the barter trade system is an effective mechanism to counter sanctions and boosting trade between Iran and Pakistan.

Seyed Mohammad Ali Hosseini said this while interacting with the business community during his visit to Islamabad Chamber of Commerce and Industry on Tuesday.

He said according to the Constitution of the Islamic Republic of Iran, we give priority and advantage to cooperation with neighboring and Islamic countries, and Pakistan has this advantage.

The ambassador added Iran and Pakistan have great scope to enhance trade relations and Pakistan should consider setting up digital markets with Iran to boost bilateral trade up to the potential of both countries.

He said that Iran-Pakistan bilateral trade was around USD 1.5 billion before Covid-19, which has now come down to less than USD 1 billion.

He said that foreign sanctions on Iran were a problem for trade promotion, therefore, establishment of Pak-Iran digital markets and joint border markets could be the better options to improve two-way trade volume.

Barter trade termed effective mechanism to counter sanctions, boosting Iran, Pakistan trade

He also mentioned the payment method as another obstacle facing Iranian and Pakistani businessmen.

The envoy added the method of payment in Iran is related to the bank, but with Pakistan, we can use other methods such as barter and the establishment of a joint financial fund.

He said that Iran and Pakistan have agreed to set up 3 border crossing points that would help increase bilateral trade. However, he said that facilitation and exemptions by the Government of Pakistan for border markets would support the Pakistani business community to further enhance trade with Iranian counterparts.

"We need to find a mechanism to take advantage of mutual capacities and get acquainted with each other's capabilities," he said.

The Iranian Envoy said that lack of better connectivity between the private sectors of Iran and Pakistan was one of the factors for low trade volume and stressed the need of close cooperation between Iran-Pakistan chambers of commerce to develop strong business linkages between the private sectors of both countries.

He said that by implementing the TIR Convention, Pakistan can promote its exports through Iran to Russia and other regional countries. He also highlighted the need for exchange of trade delegations for trade promotion and assured that Iranian Embassy was ready to help in introducing more Pakistani products in Iranian market.

Barter trade termed effective mechanism to counter sanctions, boosting Iran, Pakistan trade

Discussing Iran-Pakistan cooperation for regional relations, he referred to the ECO freight train project and said: "These days, there is good news about the re-launch of the freight train on the ECO between Tehran-Istanbul-Islamabad.

He called for more efforts of the Islamabad Chamber of Commerce to develop cooperation with chambers of commerce in Iran.

Responding to questions from other members of the Islamabad Chamber of Commerce and Industry, the Iranian ambassador said: "Iran and Pakistan are working closely together to facilitate payment methods and resolve the challenge of businessmen."

“Border security is a concern for both neighbors, and we are completing the border market plan with a special focus on removing trade barriers and helping to improve the lives of border residents,” he said.

Regarding energy exports to Pakistan, he said: Currently, 104 megawatts of electricity is exported from Iran to Pakistan and we have announced that we are ready to supply electricity to 23 border villages in the vicinity of Iran."

Barter trade termed effective mechanism to counter sanctions, boosting Iran, Pakistan trade

Welcoming the remarks of the Iranian ambassador, President  of  Islamabad Chamber of Commerce and Industry announced the readiness of this economic institution to interact more with the Iranian chambers of commerce.

Sardar Yasir Ilyas Khan stressed the importance of exchanging trade and trade delegations between the two neighboring countries, especially members of the chambers of commerce.

"We invite Iranian companies to explore Pakistan's industries and trade capacities, and we believe there are good opportunities to attract investment from Iranian companies in Pakistan's industrial, technology and textile sectors,” he said.

He stated: Islamabad Chamber is ready to participate with its Iranian counterparts to introduce mutual capabilities and explain new paths in order to strengthen bilateral cooperation in various fields.


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