Tehran, Iran and Pakistan have decided to undertake a ten-fold trade boost and expansion of economic relations in a big way, Iranian Fars news agency reported.
Key element of business ties is that they share a common border and low-cost land route, located along Straits of Hurmoz. Iran- Pakistan cooperation plans include launching a joint airline, speed up supply of Iran gas, electricity to Pakistan, open bank branches in each other’s country, build, upgrade rail, road, air links. Pakistan asked Iran to implement agreement on international road transportation of passengers and goods to provide access to Pakistani trucks to Turkey, Central Asia & Russia via Iran.
Pakistan Prime Minister Yusuf Raza Gilani in recent Tehran meeting with President Mahmoud Ahmadinejad urged him to “start up-gradation of rail, road, air links between two countries,” which will also help connect Iran & Pakistan with rest of Asia, Gulf, Middle East. Mohammad Reza Rahimi, Iran’s First Vice President in meeting with Gilani said, “Today Iran and Pakistan are moving hand in hand to attain specific goals. We can link Far East to South Asia, Africa and Europe. We can take our first step in the Middle East and a second step in intercontinental transition,” into Europe.
The two countries have decided to push their present trade level from $1.2 billion a year to $10 billion annually. Now trade balance is heavily in Iran’s favor. Current Iran’s exports to Pakistan are $1 billion. Pakistani exports are just $200 million a year. Pakistan mainly exports to Iran rice, fresh fruits and will like to import fresh, frozen meat, furniture and textiles. Iran exports petroleum, oils, lubricants, chemicals, dry fruits.
Ahmadinejad told Gilani Iran is keen to import wheat, vegetables, fruits to begin with. Iran & Pakistan will explore ways to enhance current trade volume to $4 billion by 2014,” Iran Foreign Minister Ali Akbar Salehi proposed at Iran, Pakistan Joint Economic Commission IPJEC meeting in Islamabad.
Ahmadinejad & Gilani endorsed IPJEC proposals to upgrade present Preferential Trade Agreement into Free Trade Agreement, Fars report said. Gilani said completion of Iran, Pakistan gas pipeline project and import by Pakistan of 1,000MW electricity from Tehran be expedited as Islamabad faces acute energy shortage, which is hampering pace of economic growth.
