ISLAMABAD (Dispatches) - Iran’s Ambassador to Pakistan, Mehdi Honardoost urged Pakistan to step up efforts for early finalisation of the free trade agreement (FTA). Iran’s Ambassador to Pakistan Mehdi Honardoost highlighted the importance of enhanced business ties between Tehran and Islamabad, calling on the two countries to raise their bilateral turnover in various spheres.
Mr. Honardoost said Pakistan and Iran have tremendous potential to promote bilateral trade in various sectors, but lack of payment mechanism through banking channels was the major hurdle in realizing these goals. He said one Iranian company made an initial investment to bring electricity from Iran to Gwadar but it was not getting a positive response from Pakistan. He assured that his embassy would fully cooperate with Pakistani business community in enhancing trade with Iran. The ambassador emphasized that Iran and Pakistan had tremendous potential to step up bilateral trade in various spheres, but lack of a payment mechanism through banking channels was a major obstacle in the way of realizing the goals.
"Despite a preferential trade agreement between Pakistan and Iran, Tehran’s trade with Kabul is five times more than that with Islamabad,” the envoy further said.
Back in March, high-ranking officials from Iran and Pakistan signed six memorandums of understanding (MoUs) to strengthen bilateral cooperation in various areas, including health, commerce, security and foreign services.
Both sides estimate to increase bilateral trade to $5bn from the existing $1bn in the next five years in the wake of the FTA.
Meanwhile Member of Pakistan Automotive Manufacturers Association (PAMA) says Pakistan is going to produce KIA vehicles with the collaboration of Iran.
Sohail Bashir Rana said that, Kia is in talks with Pakistani 'Lucky' Company to restart manufacturing facility in Pakistan.
He said that Iran and Pakistan have been collaborating in manufacturing of vehicles mainly the tractors.
Member PAMA said that in past Millat Tractors of Pakistan had collaboration with Iran Tractor Manufacturing Company and Sarzan Motors for making the tractor components.