KARACHI, July 19: Iran has proposed establishment of a joint trade committee of experts within next three months to identify items and areas of cooperation to further expand trade between Iran and Pakistan on a fast track.

This was stated by Iranian Commerce Minister Mohammad Shariatmadary while speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here on Saturday.

He pointed out that he had given this proposal to Pakistan during the recently held ECO summit in Islamabad.

He also invited FPCCI to take part in the deliberations of the committee for their active support in finalizing the areas.

Iranian Minister said the committee could finalize areas in its first meeting or might take some time in its deliberations.

He also underlined the importance of cooperation between the shipping lines of Iran and Pakistan to boost bilateral trade and said that Iranian shipping lines had a fleet of 120 ships and can provide a strong link between Pakistani port Gwadar and Iranian port Chahbahar.

He was of the view that both shipping lines should not be competing with each other and instead should complement and cooperate.

“I have also proposed your Commerce Minister Humayun Akhtar a short term solution for a faster expansion in bilateral trade during a meeting in Islamabad,” he said.

He said Iran would like to have a list of import items from Pakistan under this mechanism. Similarly, Iran would submit a list of import items, which Pakistan could offer to Iran, he added.

Shariatmadary said Iran had also proposed the establishment of a Pak-Iran joint investment company with an initial capital of $10 million each from both sides to promote bilateral investment.

He said the changing environment in the region had made foreign investors to look towards Iran and Pakistan.

He suggested to the two countries to cooperate and understand each other in reaping the benefits to emerge after the change in the region due to Afghan and Iraq wars.

He pointed out that the share of European Union in the international trade was about 35 per cent, Asean had 5 per cent while ECO countries had only 1.5 per cent share in global trade.

Responding to a question about the high tariff on textile import in Iran, the minister said there was no such tariff existing in Iran now after its widescale deregulation in customs and income tax rate.

He pointed out that there was only a 4 per cent customs duty on textile import in Iran and nothing else. He agreed with an FPCCI suggestion to legalise textile trade between the two countries.

Earlier, talking about the deregulation process in Iran, Shariatmadary said income tax rate has been slashed from 60 per cent to 25 per cent, reducing tax collection by a massive margin.

But this has promoted trade and business activities in Iran, he observed.

He said foreign investors were allowed 100 per cent repatriation of capital and interest.

He pointed out that the massive deregulation and economic reforms had helped Iran to achieve a growth rate of 7.2 per cent with the contribution of 11 per cent from industrial sector and 10 per cent growth from agriculture sector.

Iranian Minister also lauded the economic reforms of Pakistan with particular reference to cut in inflation rate, reduction in foreign debt and its regular repayment.

FPCCI President Riaz Ahmed Tata in his address urged Iranian Commerce Minister to lower duties on textile items to enable Pakistani textile manufacturers to export their products to Iran.

He said two-way trade should accelerate from the existing volume of $400 million.

Chairman Pak-Iran trade sub-committee of FPCCI Tariq Sayeed in his welcome address said border trade problems must be resolved to boost bilateral trade.

He was of the view that Iran must open branches of its banks in Karachi, Lahore, Faisalabad and Sialkot to facilitate opening of letter of credits (LCs) for boosting two-way trade.

Tariq Sayeed pointed out that land and rail routes should be further developed and shipping lines be revived to facilitate faster trade between the two countries.—APP