ISLAMABAD – A Pakistan English news daily reported that Iran and Pakistanare likely to finalise the draft for Free Trade Agreement (FTA) during thetwo-day talks on April 22-23 to be held in Islamabad.
The News in its report said the technical teams from both the sides willhold crucial interaction and are mostly likely to approve the draft for FTA.
According to a senior official at Commerce Ministry, both sides have workeda lot on the draft for FTA and now they are inclined to give green signalto the free trade deal.
At present, the trade between both neighboring countries is underway underPreferential Trade Agreement (PTA) which was signed in 2006 and effectivein 2007.
Iran which is the immediate neighboring country of Pakistan has the tradevolume of $18 billion with India even in the presence of the US sanctionsraising the eye brows as to why not Pakistan has managed to keep the tradewith Iran at reasonable level.
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India imports from Iran the POL products worth $10 billion. Most of tradebetween Iran and India is based on barter system
The absence of the banking channels is the single largest obstacle toenhancing the trade between Iran and Pakistan. State Bank of Pakistan andthe Central Bank of Iran are also in talks for payment arrangements throughbanking channels.
Leaders of Iran and Pakistan have already agreed to enhance the bilateraltrade volume to $5 billion in the next five years.
