Pakistan and Iran to strengthen bi-lateral trade

Pakistan and Iran to strengthen bi-lateral trade

Friday, February 24, 2012: Pakistan and Iran has decided to strengthen their relationship by signing a bi-lateral trade agreement. Both countries have come into a barter agreement under which Pakistan will export one million tons
of wheat and 200,000 tons of rice to Iran and in return for the goods, Iran will give Pakistan fertiliser and iron ore.

President of Pakistan Asif Ali Zardari during his meeting with Iranian President, Mahmoud Ahmadinejad, in Islamabad has emphasized the need to increase the trade between the two countries. The barter trade between Pakistan and
Iran is the result of that meeting.

Syed Naveed Qamar, Federal Water and Power Minister, held a meeting with Iranian Deputy Commerce Minister Abbas Ghobadi during the terms and conditions were decided.

Abbas Ghobadi said Pakistan’s rice was very popular in Iran and was cooked in every festival and special occasion.

Pakistan produced excessive wheat this year and at present has a surplus stock of two to three million tons of wheat. Therefore, the country has decided to export the excessive amount to lessen the burden on foreign exchange.

An official, who wanted to stay anonymous, said, “Though prices of wheat in the international market are not as attractive right now compared to the domestic market, it will be better to export the surplus stock which will save
a hefty amount being spent on storage. The barter trade will lessen the pressure on foreign exchange reserves which are being spent on import of fertiliser due to domestic shortage.”  

Pakistan’s urea production capacity is estimated at 6.9 million tons – seventh largest in the world and enough to meet domestic requirements. The fertiliser industry has invested $2.3 billion over the last three years to enhance
production capacity. But due to shortage of gas production has gone down by two million tons, increasing the import burden this winter.

Pakistan and Iran are also going forward with the Gas pipeline project, despite opposition from US. This Gas pipeline project will help reduce gas shortage in Pakistan to great extent.

Short URL: https://www.newspakistan.pk/?p=13782

Posted by Wajahat Javed on Feb 25 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry