Lack of banking channel major hurdle for Iran-Pakistan trade

The delegation comprising of 40 businessmen led by President of Pakistan-Iran Joint Chamber of Commerce and Industry Wali Muhammad is currently on a visit of Iran to participate in Expo 2017 industrial exhibition.

During the meeting both sides discussed ways to enhance bilateral trade ties and agreed to solve all problems hampering the bilateral trade which currently stands at $ 1.2 billion.

Consul General of Iran in south western Pakistani city of Quetta Mohammad Rafiei was also present on the occasion.

The two sides noted that Pakistan and Iran have tremendous potential to promote bilateral trade in various sectors, but lack of payment mechanism through banking channels was the major hurdle in realizing these goals. They noted that due to lack of banking channel it is difficult to open LCs for the trade.

They also discussed expansion of Preferential Trade Agreement (PTA) to boost the bilateral trade volume.

The Iranian officials noted under an agreement for resumption of banking system between the two countries Iran has introduced 24 banks to Pakistan but they are still awaiting the other side to introduce its banks to Iran.

Pakistani delegation stressed the need for launching of direct flights between Pakistani city of Quetta and Iranian cities of Mashhad and Zahedan.

The traders added they are ready to export rice and sesame seeds to Iran but there are no storage houses in Zahedan for the products.

The delegation will leave for Zahedan tonight to have meetings with the officials of Zahedan Chamber of Commerce and Industry. They will also meet governor of Sistan-Baluchestan Province in Zahedan before leaving for Pakistan.

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