At times when Pakistan is looking for promoting bilateral trade with neighboring countries, the sighing of as many as 39 memorandums of understanding regarding enhancing trade volume with Iran is a welcome augury.

Yes, this series of MOUS will definitely improve economic ties and will ensure new era in bilateral projects pertaining to transportation, tourism, IT, fisheries, forests and mineral etc.

The MoUs were inked at the completion of a two-day moot organized by the joint border trade committee last week.

It is hoped that following this new development, both countries through their trade bodies represented by Zahidan Chamber of Commerce, Industries, Mines and Agriculture and Quetta Chamber of Commerce and Industry  will take the trade to new horizon and will explore new arenas.

As a matter of fact, there is scope for  both the states to ensure measures to enhance bilateral trade to $5 billion on yearly basis, which can bring about a happy change in the business scenario in both countries.

The MoUs can help Iran and Pakistan which are the two important countries in the region, to utilize the exiting scope for expanding their economic capacities in sectors which need to be further explored in the wake of changing world scenario.  For this, the existing obstacles in the way of free trade between the two states must be removed on priority basis. There is vast scope for cooperation in the field of energy, and the various regional development endeavors and mega projects like CPEC, which is said to be game-changer for the region’s countries especially Pakistan. While Pakistan can utilize the energy sector cooperation from Iran, the latter can avail the IT workforce experience as Iran is in urgent need of specialised personnel in the field of technology.

Some experts suggest that both sides can form a joint science and technology park on the common border which will of great benefit to Iran which is looking for IT-related help from Pakistan. For this the two sides can share and can benefit from experiences of the IT experts, and other educated young people in the field of technology and science.

On the other hand, Pakistan is looking for enhancing trade volume as despite huge Iranian market, our country has a narrow export basket to this brother Muslim country. A whopping 63 per cent of our overall exports to Iran consist of rice alone.  It may be recalled here that in 2006, A preferential trade agreement (PTA), which took place in 2006, also exists between the two states under which various Tariff concessions are also provided to Iran on over three hundred items. As far as Pakistan is concerned, it has been granted concessions on around 340 tariff lines. This PTA mostly revolves around grains, fruits, rice, pharmaceutical products, cotton, cotton yarn, and cutlery. But the irony is that this FTA is yet to be fully utilized as it is being obstructed by the unavailability of a payment mechanism, which must be solved on priority basis. For this a regular banking channel must be set up to facilitate the mode of payment,

 In the backdrop of long-lasting ties, the two sides can take to the next level of advance economic and energy collaboration, operationalization of barter trade, facilitation of Pak Zaireen in Iran for visiting the holy Islamic sites, the vision and mission to ensuring the barter trade mechanism and formalization of cross-border trade and other engagements is what can ensure a trade for which new border crossing and market places alongside border areas are required to which both the peoples should have a smooth access..

In the backdrop of changing world economic scenario due to increasing prices of energy and food sector products mainly oil, there is a strong need for enhancing trade ties with Iran who can help us in this critical juncture of period.

Last year, the Foreign Minister Bilawal Bhutto Zardari’s  visited Iran and his visit came at a time when the two neighbours were celebrating the 75th anniversary of the unwavering diplomatic ties with renewed pledges which are of greater significance in future relationship between the two sides.

The visit focused on the vast spectrum of bilateral ties ranging from cultural affinity to shared religious background, people-to-people contract, Iran’s support to Pakistan on Kashmir dispute and also mainly focused on facilitating trade endeavors and exploiting the existing potentials of trade between the two sides and taking them to new heights.  There is no denying that Iran is not only our most trusted next door neighbor with whom Pakistan has no dispute, but there exists a vast scope for trade and bilateral ties as there is no trust deficit between the two.  Their ties date back to the days when Pakistan emerged on the map of world because Iran was the first country to recognize Pakistan after it came into being in August 1947. And the first head of any state to visit Pakistan after its independence was also Shah of Iran who paid an official visit to Pakistan in 1950.

Iran’s unwavering support to Pakistan on the Kashmir dispute is also a known fact.   It may be mentioned here that the 909-kilometre Pak-Iran border is one of long-lasting symbol of peace and solace as both the government and people trust each other in real sense of the word.

Off-late some quarters were trumpeting the issue of border fencing between the two states but there’s no dispute on border fencing between Muslim brother countries. In fact, the Iran has always welcomed border fencing, terming it a welcome measure for redressing the security concerns if any on both sides.

And most significantly, the two people enjoy close cultural and religious ties and there is a vast scope for cooperation between the two states in various sectors. But it is very unfortunate and ironical that despite all available scope for enhancing ties, the two countries have yet to capitalize on the existing opportunities as the trade volume between the two states is very thin and drastic efforts should be made to expand the same.

Published in The Daily National Courier, January, 18 2023

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