Iran’s Trade Balance with Pakistan is Positive / Need to Strengthen Infrastructure for Expanding Relations

According to the Public Relations Department of Iran’s Trade Promotion Organization, Hamidreza Karbalaei Esmaeili, ahead of the first official bilateral visit of Masoud Pezeshkian, President of the Islamic Republic of Iran, to Pakistan following the 12-day war of the Zionist regime against Iran, spoke about the trade situation between the two countries: Trade between Tehran and Islamabad has been on an upward trend, increasing by 13.6% in 2024 compared to the previous year.

The Deputy for the Indian Subcontinent at Iran’s Trade Promotion Organization estimated the trade volume between Iran and Pakistan last year at $3.129 billion, adding that Iran’s exports accounted for approximately $2.423 billion, while imports from Pakistan stood at $706 million. He stressed that Iran has a trade surplus of 3.5 times compared to Pakistan.

Karbalaei Esmaeili said that an analysis of Iran-Pakistan trade relations shows Iran’s exports are 3.5 times greater than Pakistan’s exports to Iran. He noted that the main imported goods from Pakistan include rice, oilseeds, and meat products, while the largest share of Iranian exports to Pakistan consists of petroleum products, powdered milk, and various types of dates.

He added that in the first three months of this year, the total trade volume amounted to $594 million, compared to about $704 million in the same period last year, indicating a decline in trade. In the first quarter of this year, Iran’s exports to Pakistan were $420 million, showing a 20% decrease compared to the same period last year, while imports stood at $174 million, down by 4%, which he attributed to regional conditions.

The deputy emphasized strengthening free trade between the two countries, noting that free trade between Iran and Pakistan started in 2016 and expressed hope that, with upcoming agreements, this long-standing expectation would yield positive results.

Economic Diplomacy Development in the Trade-Oriented Government

He stated that the 14th government aims to enhance economic diplomacy and improve trade relations with neighboring countries, expressing hope that negotiations on free trade would be fruitful and facilitate business opportunities for Iranian and Pakistani traders.

Karbalaei Esmaeili pointed out that with Pakistan changing its trade approach with other countries and revising tariffs, conditions for trade with Iran have improved compared to the past, and this facilitation from Pakistan is expected to lead to positive developments in bilateral trade.

The deputy stressed the importance of border markets in Iran-Pakistan trade and said that if these markets are established and activated, they will stimulate trade growth.

He added that Iran must strengthen infrastructure to develop trade relations with neighboring countries, noting that Iran is currently weak in maritime transportation, and sea-based goods exchange is almost zero.

(Source: IRNA)