ISLAMABAD - Pakistan will export one million tons of wheat to Iran under barter trade system and in exchange will import fertilizer and iron ore from Iran.

Iran will also import 200,000 ton rice from Pakistan in order to enhance bilateral trade and economic ties. This was discussed and finalized during a meeting held between Federal Minister for Water and Power Syed Naveed Qamar and the visiting Iranian Deputy Commerce Minister Abbas Ghohadi, said a press release issued here Friday.

The meeting was held in connection with the decision taken by Iranian President Mahmoud Ahmadinejad and Pakistani President Asif Ali Zardari in Islamabad last week. Both the Presidents had decided to further expand trade between the two neighbours.

Qamar asked the Managing Director PASSCO Maj. Gen (Rtd) Sohail Shafkat to hold talks with Iranian Deputy Minister to discuss modalities and details for the export of Pakistani wheat. It was decided that Iranian delegation would have another meeting with PASSCO to further discuss export of wheat, and PASSCO will present samples of wheat to Iranian Deputy Commerce Minister for examination.

Ghohadi said that Pakistan’s rice was very popular in Iran and it is used in every festival and special occasions. He said that the delegation wanted to visit the storage facilities of wheat in the country to examine its quality and specifications. He also assured that Iran will facilitate the wheat exporters and simplified the administrative procedures for better trade relations. The meeting was also attended by Chairman TCP and MD PASSCO.

Reuters adds: “Some things need to be worked out before we can say for sure if and when this will happen,” a senior official at the Commerce Ministry told Reuters on Friday, requesting anonymity because he is not authorised to speak to the media. “There are payment issues because of sanctions and that makes such trades more difficult than usual.”