Iran–Pakistan trade relations

Land based trade routes of Western Pakistan and Eastern Iran.

Pakistan and Iran trade relations are based on diverse axes such as energy, infrastructural cooperation, financial assistance and commercial exchanges.[1] Pakistan is the fifth largest economical and trade partner of Iran and annual trade is between $1 billion (£1.4 billion) as of 2009.[1] In 2007-08, annual Pakistan merchandise trade with Iran consisted of $256 billion in imports and $218.6 billion in export, according to WTO.[2]

Bilateral trade

On 12 January 2001, Pakistan and Iran formed a "Pakistan-Iran Joint Business Council" (PIJB) body on trade disputes.[3] The body works on to encourage the privatization in Pakistan and economic liberalization on both sides of the countries.[3] In 2012, the bilateral trade exceeded $3 billion.[4] In 2011, the trade between Iran and Pakistan stood at less than $1 billion and the common geographical borders as well as religious affinities are among other factors, which give impetus to enhanced level of trade.[4] According to the media reports, Iran is the second-largest market of Basmati rice of Pakistan, ranking after Iraq.[5]

Effects of US sanctions on Iran

The U.S. economic sanctions on Iran regarding their nuclear program generally effected Pakistan's industrial sector.[6] The fruit industry of Pakistan have reportedly lost a lucrative market in Iran, where at least 30,000 tons of mango were exported previously, as a result of the trade embargo imposed by the United Nations on Tehran.[6] According to the statistics by Pakistan, the fruit industry and the exporters could not export around $10 million worth of mango during the current season.[6] The Ministry of Commerce (MoCom) has been in direct contact with the US Department of Agriculture to resolve the issue through diplomatic channels.[6]

Sources

  1. ↑ 1.0 1.1 Iranian Embassy (February 18, 2012). "Pak-Iran economic relations". The Nation, 2012. Retrieved 27 November 2012.
  2. ↑ WTO. "Iran's Economic Partner". World Trade Organization. Retrieved 27 November 2012.
  3. ↑ 3.0 3.1 Reporter (January 13, 2001). "Pakistan, Iran form body on trade disputes". Dawn Archives, 2001. Retrieved 19 December 2012.
  4. ↑ 4.0 4.1 Staff Report (October 10, 2012). "Pakistan to consider barter trade with Iran". Daily Pakistan 2012. Retrieved 5 January 2013.
  5. ↑ Staff Report (July 29, 2012). "Pakistan to consider barter trade with Iran". Daily Pakistan July 29. Retrieved 5 January 2013.
  6. ↑ 6.0 6.1 6.2 6.3 Our Correspondents (5 January 2013). "Pakistan loses Iran’s mango market". Tribune Express. Retrieved 5 January 2013.