LAHORE: Iranian ambassador to Pakistan has identified a lack of banking channel and certain behaviour of bureaucrats both in Pakistan and Iran, besides an international currency, as major hurdles in the promotion of trade between the two neighbour states.
“Besides the currency problem, other issues that need immediate attention are establishing a formal banking channel, the main trade infrastructure, for business transactions between Pakistan and Iran, and bringing a change in the behaviour of the officialdom of the two countries,” Dr Reza Amiri Moghaddam said at a reception arranged by foreign affairs expert Muhammad Mehdi here on Sunday.
“If the issues are resolved, bilateral trade may be increased to over $10 billion within no time from its present level of $2.4 billion,” he said, adding that the current trade figures exclude the energy sector and unofficial [smuggling] exchange of goods.
He argued that due to common borders, the transportation cost of goods between the two states would be the minimum and thus would benefit consumers across the borders as Pakistan may meet 70 percent import needs of Iran, while the latter have products to fulfill 80pc import requirements of Pakistan.
The diplomat said that currencies of other countries like Chinese yuan could also be introduced for the purpose and stressed that Tehran is much experienced in utilization of currencies other than US dollar as its annual imports and exports are worth $100bn collectively.
Dr Moghaddam was at loss to understand why Pakistani businesses were reluctant to participate in trade exhibitions in Iran as a delegation though they would individually attend the event.
He told a questioner that those fanning turmoil in both the states and creating hurdles in bilateral relations were a common threat for the two countries.
Referring to 950-km joint borders, historical, religious, and cultural ties between Pakistan and Iran, he wondered why these facts could not warm up relations between the two peoples up to the potential.
He said his country considered that many states would be investing in the China-Pakistan Economic Corridor and these projects would definitely need energy, which could be provided by Iran at affordable rates.
Answering a query about the Gaza issue, the diplomat said that Arab states must remember that Israel desired to expand its borders from West Bank to Euphrates, which meant engulfing all the Arab peninsula, and must join their energies to counter this threat instead of establishing ties with the Zionist state.
Welcoming the guests, Mr Mehdi called for stepping up efforts to re-establish banking channels between Tehran and Islamabad and enhanced exchange of trade, cultural and student delegations for reinforcing people-to-people contact between the two neighbours.
He recalled that Muslims of the sub-continent had been supporting the cause of Palestine since the start of the problem as a resolution on Palestine had been passed along with the Lahore Resolution, which laid stone for the foundation of Pakistan, in 1940.
