KARACHI/rawalpindi

President FPCCI Abdul Rauf Alam hails the prudent decision of the government to lift sanctions on trade with Iran which will positively enhance the bilateral economic and trade relations with Iran.
He appreciated the Finance Minister, Ishaq Dar and anticipated that all economic projects with Iran will be revived. The Iran – Pakistan gas pipeline project, import of 1000 MW electricity which was agreed in 2009, opportunities of such mega projects will be revamped under new scenario, he added.
He further said that the imported electricity from Iran is much cheaper than the electricity produced by the Independent Power Producers (IPPs) and currently Pakistan is importing about 100 MW electricity which should be extended to 3000 MW.
Discussing on the impact of bilateral trade with Iran after lifting of sanctions, Rauf Alam said that Pakistan and Iran being the neighboring countries are traditional trading partners since long and believes on trade liberalization and a Joint Business Council was formed in 2001 for this purpose under the ages of National Chambers of both the countries.
He said that a drastic decline was witnessed in trade volume between Pakistan and Iran in 2010-11 to US $ 431.765mn from US $ 1220.90 in 2009-10 and US $ 1321.59 in 2008-09 even though both countries had PTA.
Rauf Alam who is also holding the Presidency of ECO Chamber of Commerce & Industry further stated that there is great potential of enhancing the bilateral trade to US $ 5 billion between both the countries. He termed the current decision of the government as revolutionary step towards boosting bilateral trade with Iran. He also drew the attention of the government towards the importance of banking channel to be established with Iran immediately which is required for flow of trade swiftly.
He referred that Iran and Pakistan are also member countries of Economic Cooperation Organization (ECO) wherein a business rating program is under discussion to establish a separate rating agency under the umbrella of ECO and Islamabad-Tehran-Istanbul (ITI) cargo train project for promotion of trade in the region.
He said that lifting of trade sanction on Iran will lead to success of ITI cargo train project. He further informed that in the last meeting of Regional Planning Council (RPC) of ECO held in Tehran and later on in the Executive Committee Meeting of ECO-CCI held in Ankara, Turkey, it was decided that ITI Cargo Train will include the passenger traffic which will make this project viable.
He further said that FTA among ECO member countries is also in progress after that trade with ECO member countries including Iran in services sector, Investment, banking and finance, industrial and agricultural sectors will be boosted.
He highlighted that opening of trade with Iran will favour the China Pakistan Economic Corridor (CPEC). The common geographical borders as well as religious affinities are among other factors, which give impetus to enhanced level of trade in coming days.
Rawalpindi Chamber of Commerce and Industry (RCCI) president Mian Humayun Parvez has said that lifting of sanctions on Iran would help reviving economic relationship between the two neighbouring countries in several areas of cooperation including trade, investment, technology, banking, finance and energy.
In a statement, RCCI president said that Iran was the first country which recognised Pakistan after its independence and Pakistan also was the first country that recognised Islamic Republic of Iran after revolution. He said that cotton, textile and rice were the key areas of cooperation, which can benefit Pakistani exporters. Iran-Pakistan gas pipeline project will help Pakistan to meet its domestic and industrial need, he added.
While expressing hope, Mian Humayun Parvez said that the five-year trade facilitation plan between Pakistan and Iran would help both countries to enhance bilateral trade volume to $5 billion. However, President RCCI called for an early elimination of all non-tariff barriers under the 2006 Preferential Trade Agreement.
Meanwhile, Rawalpindi Chamber of Small Traders and Industries senior vice president Nadeem Sheikh said that the chamber was making all out efforts for solving the problems being faced by the traders. He, while talking to media, also appreciated the MPs and senators for forming laws for betterment of traders affiliated with small businesses and industries. He informed that a total of 350 members have been enrolled with RCSTI while small chambers and small industries have also been established at Rawalpindi, Islamabad, Peshawar, Quetta, Faisalabad, Gilgit and Mardan. He said that RCSTI would soon sign an accord with SMEDA for mitigating the miseries of small traders.