ISLAMABAD: Iranian Ambassador Mohammad Ali Hosseini has offered his government’s support to complete the Iran-Pakistan (IP) Gas Pipeline project besides hinting at extending cooperation in other fields of mutual interest.
Speaking with APP in an interview, Ambassador Hosseini said that Iran is willing to further strengthen mutual trade cooperation in the completion of energy projects, especially the IP gas pipeline; as well as in the establishment of border markets; finalisation of a free trade agreement (FTA), and in collaboration on major ports and security areas.
“Both Pakistan and Iran are geographically very important countries and our mutual cooperation is of the utmost importance for our geo-economic interests,” he emphasised.
Acknowledging joint efforts to achieve the target of enhancing their mutual trade to $5 billion, the Iranian ambassador stressed the need of tariff rationalisation and other reforms, stating that these will not only expedite the realisation of a larger trade volume but also promote regional trade.
Regarding gas, a commodity that is going short in Pakistan, Hosseini said that Pakistan could benefit from importing from Iran and Pakistan to fulfill its energy needs as there were no sanctions over its trade. He said the IP gas pipeline is a key project in this regard and informed that a technical committee is deliberating over the project. He said its completion will open new avenues for mutual cooperation between the two countries.
The ambassador said Iran was already exporting 100 megawatts of electricity to Pakistan for meeting power needs in areas on their border which will be increased in the future whereas work is also going on another project to provide electricity to Pakistan. “Both the countries have taken initial steps in that regard,” he said.
While identifying opportunities for investors of both countries in various trade sectors, particularly in industrial zones, the Iranian ambassador highlighted the role of both countries in regional economic and trade integration. He said the North-South and East-West corridors will not only connect Pakistan to Iran but also help the former’s trade and economic integration with Central Asia, Europe, Middle East and Russia.Â
Hinting at co-operation in this regard, Hosseini said there was a possibility of a banking channel being opened in the near future.
Furthermore, he said barter trade between the two countries can also be further promoted as “we are already trading rice and meat”.
In regard to the movement on the Pakistan-Iran border, he said new crossing points had been opened. “The two countries are committed to providing more facilities at crossing points to facilitate the movement of common people and transit trade,” he added.
He said it was decided in principle to set up six border markets in order to promote mutual trade relations. “The Pishin border market has been completed and its inauguration will be held soon while work on Gabd, Rimdan and Kohak markets will start in the near future,” he added.
The ambassador also spoke about trade agreements including the FTA and PTA. In regard to the FTA, he informed that there had been considerable progress as several rounds of negotiations had taken place between the two countries whereas mutual trade lists had also been exchanged with consensus developed on trade items.
He recalled that the PTA was signed in March 2004, however, it needed to be reviewed and made more effective.
Stressing the importance of transit routes and transport in the promotion of regional trade, Ambassador Hosseini said that the Pakistan-Iran-Turkiye train link had been restored. He said that this development will promote economic and trade relations among the three countries and also increase regional economic and trade integration.
He informed that the three governments had agreed to equip the train route with facilities in a bid to promote mutual trade and goods trade operation. Similarly, he said the Taftan-Quetta train section needs to be repaired and informed that both Iran and Pakistan had reached consensus over the matter.
He said the train link among Pakistan, Iran and Turkiye could play a very important role in regional trade integration as it could connect Central Asia, Middle East and Europe economically and commercially.
He said Iranians had expertise in train and wagon production. Likewise, his country had special expertise in the field of transportation, which was very important for transit trade.
To a question, the Iranian ambassador said direct air connectivity between Tehran and Islamabad, and other big cities of the two countries was very important for the promotion of mutual relations.
He said there was a lot of potential in religious tourism in both the countries. The people of Pakistan visited Iran for pilgrimage to sacred sites.
Concluding the interview, Mohammad Ali Hosseini expressed hope for the possibility of an open vise policy between the two countries.Â
The ambassador urged the involvement of the youth for the promotion of e-commerce trade between the two countries alongside the cooperation between chambers and business communities to promote cordial relations.
