Iran proposes setting up border markets with Pakistan for trade development  

Iranian Ambassador Mr. Reza Amiri Moghadam with FPCCI leaders ( Photo: FPCCI)

By Nasir Aijaz
The AsiaN Representative

KARACHI: Mr. Reza Amiri Moghadam, Ambassador of Iran in Pakistan, has proposed to set up border markets with Pakistan to enhance trade between the two countries.

“Iran is one of the world’s top producers of petrochemical and energy sources – and, Pakistan is mostly dependent on imported oil and other energy sources. This phenomenon makes Iran a very important country for Pakistan to bridge its energy deficiencies through reliable and inexpensive supplies from Iran,” Reza Amiri said during a visit to Federation of Pakistan Chambers of Commerce & Industry (FPCCI) in Karachi on Friday Nov. 24, 2023.

Reza Amiri, who held a detailed meeting with FPCCI leaders, also highlighted that Pakistani rice is popular in Iran due to its good taste and Pakistani textiles are world-famous. “

The two countries also enjoy cultural and religious bonds,” Iranian Envoy said and expressed his desire to enhance people-to-people; business-to-business and chamber-to-chamber contacts with Pakistan.

“We need to increase business tourism between the two countries and Iranian embassy is all-willing to facilitate the Pakistani business community in visas and participation into trade exhibitions and fairs in Iran,” he said.

Irfan Iqbal Sheikh, President FPCCI, welcoming the suggestion, said that enhancing trade with Iran can help resolve Pakistan’s chronic trade deficit issues as Iran is Pakistan’s next door neighbor and exporting to Iran will be price-competitive due to negligible shipping & logistics costs due to land-based route.

Irfan Iqbal pointed out that the lack of banking channels between the two countries is the top most impediment in increasing Pakistani exports to Iran. “An effective and functional currency swap mechanism can help resolve the issue,” he said.

Shaukat Omerson, Vice President FPCCI, also highlighted that there are a number of products and services that Pakistan can export to Iran in large numbers. “Rice, fruits, vegetables, value-added textiles, sports goods, surgical instruments, pharmaceuticals and IT services of Pakistan have great potential in Iran,” he added.

Shaukat Omerson said that bilateral trade of $2.4 billion, as per latest statistics, is below the potential for the combined population of well over 300 million for the two countries. He also called upon capitalizing on land-based transportation opportunities. “We can utilize land-based routes through transit trade to Central Asian Countries, Turkiye and beyond,” he added.