C-G seeks banking channel between Iran, Pakistan

Outgoing Consul General of Iran, Abbas Ali Abdullahi has said that he had several meetings with last four Governors of State Bank of Pakistan on establishment of Banking Channel between two countries as Bank Milli of Iran can open its branches in Pakistan and in reciprocity National Bank of Pakistan can open its branches in Iran.

Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI), he was of the view that Pakistan's banking channels were established with various countries world-wide thus with Iran should not be neglected.

He said that top Leadership and Ministers do have will to cement ties whereas progress on implementation was slow. Sharing views on originally proposed Iran-Pakistan-India gas pipeline, now Iran-Pakistan Gas pipeline also called "Peace pipeline", he said that the progress on mega project on cost-sharing basis between the two countries was slow; Iran had laid 1,200 kilometres' pipelines from Bander Abbas up to Balochistan border, international pressure and other factors were affecting the progress.

He said that Iran being next-door neighbour can give energy in 10 cents He asserted that initiatives are required to formalise undocumented trade between the two countries. He was of the view that ECO is not much vibrant as compared to RCD. He also opined that there should be no embargo on Pak-Iran trade as other countries of the world are doing trade with Iran.

He said that Iran's trade with other regional countries is higher as compared to Pakistan. Pakistani rice, wheat, fruits, dry fruits, mangoes, textiles' items, petrochemical, livestock, meat, dairy have great demand in Iran. He urged that both countries should seriously consider exploiting opportunities as Iranian people want to see a prosperous and developed neighbouring Pakistan.

He expressed profound gratitude to the Leadership of Karachi Chamber of Commerce and Industry and four Presidents of KCCI with whom he availed the opportunity for interaction from year 2010 to 2012 and managed several meetings with Iranian Business Delegations and Government dignitaries.

He said that he enterprises best to bring closer two countries and its people and is of the view that sanctions won't affect historical relations between the two brotherly Muslim countries. In future a lot of avenues of mutual co-operation will open. During his 29 months assignment in Karachi, he received best support from the both Federal and Provincial Governments as well as the private sector, he informed.

He said that he is taking sweet memories with him and prayed that Almighty God Bless both brotherly countries and Muslim Ummah and Pak-Iran Friendship will further strengthen in future.

Consul General said that political relations between the two countries are high and people of both countries have deep love and respect for each other and relations date back to centuries based on religious, cultural and traditional norms. However, he said trade relations are not according to the existing potentials due to sanctions.

KCCI President Muhammad Haroon Agar impressed upon need to form Karachi-Tehran Joint Chamber of Commerce and Industry to explore the huge trading potential between two bordering neighbour countries. He urged the Governments of Pakistan and Iran to introduce banking channel and make arrangements for currency swap to enhance Pak-Iran bilateral trade.

He asserted upon the need to take measures such as economic integration and reduction in transaction costs, port-to-port activities and customs mechanism to expand the volume of bilateral trade. He urged to activate and develop regional trading block of ECO countries, particularly between Pakistan, Iran and Turkey. He proposed that the trade between Pakistan and Iran should be permitted in local currencies instead of dollars and the trade through railways and road be regularised.

He was of the view that Pakistan being energy-hungry country, should seriously consider implementation of Iran-Pakistan Gas pipeline project which is burning need for our country to overcome the energy crisis and for industrialisation. The status of $7.5 billion Iran-Pakistan (IP) Gas Pipeline can enhance the economic relationship with Iran. He highlighted the existing tremendous potential for Pak-Iran bilateral trade and identified possibilities of joint ventures in value-added agricultural, mining and engineering sector.

To enhance bilateral economic and commercial co-operation, he voiced to establish banking channel as the business transactions between Iran and Pakistan is routed through Asian Clearing Union which is more time-consuming than a normal letter of credit (LC), while opening a LC through Iran's sister companies in Dubai also adds to cost.

He emphasised to deepen the existing Preferential Trade Agreement which was signed in 2004 to be followed by Free Trade Agreement. Upon agreement or on arrangements of barter trade Iran may export electricity and petroleum products to Pakistan. He underscored the need of regular exchange of trade delegations and organising of exhibitions to enhance bilateral trade. He emphasised on the need of documentation of trade and formalise it through Balochistan border from where presently barter trade is in practice.

Former President KCCI Majyd Aziz was of the view that Pak-Iran Free Trade Agreement is more important as compared to FTA with other countries owing to immense trading potential with bordering neighbour. He said that GCC will become the Arab Union whereas the role of OIC is not satisfactory. He emphasised to create Islamic Trading Block. Senior Vice President KCCI Shamim Firpo, Vice President Nasir Mehmood and Managing Committee Members also participated in the meeting.-PR