Pakistan-Iran
Smuggling issue hits trade bond between Pakistan-Iran
Islamabad: Smuggling of goods remains high between Pakistan and Iran due to high tariffs despite a preferential trade agreement (PTA) and memorandums of understanding (MoUs) inked between the two nations, media reports said.
During a webinar organised by the Karachi Chamber of Commerce and Industry (KCCI), Chamber Vice President Shamsul Islam Khan suggested that Pakistan and Iran should look into the possibility of setting up a duty-free Common Trading Zone and an industrial park at the border to improve the existing meagre trade volume between the two countries and effectively curb smuggling, which was hampering legal trade," The Express Tribune reported.
During the interaction, Khan mentioned that other than PTA between Pakistan and Iran, numerous MoUs had also been inked and a free trade agreement (FTA) was being negotiated.
“However, all these agreements and MoUs have not yielded positive results as the trade volume remains low while smuggling flourishes,” he was quoted as saying by the newspaper.
“Hence, it is essential to bring down tariffs and establish a duty-free common economic zone and industrial park where business communities of both countries could easily set up their business units and warehouses, which will surely give a boost to the two-way trade," he said.
Khan emphasised that Pakistan and Iran, besides looking into the possibility of implementing a paper visa regime, must also agree on giving duty-free access to numerous products.
“We can start from five to 10 items having immense trade potential and after seeing the impact, the list can be enhanced by adding more items being traded between the two countries," he said.
Speaking on the occasion, Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) President Masoud Khansari said the volume of bilateral trade was unsatisfactory as compared to the potential, which required attention of both sides.
“Although an Iranian trade delegation visited Pakistan before the Covid-19 outbreak, which proved very fruitful, trade suffered due to an extraordinary situation triggered by the pandemic. Hence, such visits will once again resume and trade will improve as soon as the pandemic is over,” he was quoted as saying by the newspaper.
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