Pakistan-Iran Exploring Joint Activities: Daily

Islamabad, July 18, IRNA – Pakistan and Iran are exploring joint activities in exports and investment under a five-year strategic program, a leading news daily said on Tuesday. ‘Business Recorder’ reported that both countries are currently engaged in two-day parleys in Tehran aimed at expanding Iran-Pakistan trade and taking it to $ 10 billion in years to come. A four-member official delegation is pleading Pakistan’s case in Tehran. It said that a steering committee will be established to carry out and manage the program through coordinating imperative activities and operations and public and private institutions which will cover economic sectors of Iran and Pakistan with assistance of “specialized sub-committees.” To strengthen trade relations, both countries will improve taxation, tariffs and customs duty and import quotas and devise a strategy to exercise uniform customs procedures to the extent possible in accordance with bilateral agreements based on mutual assistance for the proper application of customs laws and for the prevention, investigation and combating of customs offenses between the two. Both countries will create a friendly business environment for products, services and investment, originating from the other side. “Creation of a Joint Industrial Zone (JIZ) or industrial park, establishment of free trade zone and exchange of available technologies is also on the five-year strategic program,” the newspaper quoted documents as saying. Both countries will also consolidate Preferential Trade Agreement (PTA) through reduction of customs duty and excise and import quotas which will be translated into Free Trade Agreement (FTA). Both countries will expand infrastructure, required for logistical cooperation (such as construction of new roads, renovation and development of existing roads, building warehouses and storage, expanding or building loading and unloading terminals and expansion of transportation fleets), service, energy (pipelines and power grids), and software (to boost communication networks). Groundwork will be established to employ local currencies for barter trade procedures for goods, services, and projects. Both teams will explore existing manufacturing and commercial potentials (goods, services, technical and engineering and training), and verify comparative advantages in manufacturing and exports. Both counties will verify capabilities in industrial, service, engineering and technical sectors and determine needs based on counterpart’s congruent capabilities. Engineering and consulting facilities will be established for companies to participate in tender and execution of construction, industrial and service projects. Joint chambers of commerce, special trade shows and exchange of high level trade missions, preferably headed by senior government authorities are also on the agenda under discussion in Tehran./end