ISLAMABAD, Oct 8: Pakistan and Iran agreed to enhance bilateral economic cooperation in various sectors, including energy, railways, roads and trade, besides exploring the need for establishing a joint shipping company to boost maritime cooperation and mutual trade.

The issues related to enhancing trade were discussed during a meeting between Iranian Ambassador Mashallah Shakiri and Deputy Chairman Planning Commission Salman Farouqui here.

Speaking on the occasion the Iranian ambassador said that his country was ready to export electricity to Pakistan, adding that Iran was already working on Sahara hydel power project on the river Chenab and had raised its capacity from initially proposed 65MW to 130MW through IPP.

He said that the present volume of trade between the two countries showed that the bilateral trade potential was untapped, adding that the volume of trade between Iran and other regional countries is significantly higher than that with Pakistan.

He pointed out that the main problem was lack of physical as well as institutional connectivity between the two countries and proposed to establish Pak-Iran joint shipping company that would enhance connectivity leading to increase in bilateral trade.

He also showed his country’s interest in enhancing cooperation in banking sector by opening up branches of banks in each other’s countries on reciprocal basis.

Deputy Chairman Planning Commission Salman Farouqui told the ambassador that Pakistan was interested in importing electricity from Iran as it was currently facing power shortage. He suggested bilateral negotiations to work out the modalities on pricing and transmission.

He promised to examine the proposal for joint shipping and said that Pakistan National Shipping Corporation would be asked to look into this matter.

Mr Farouqui also underlined the importance of modern railroad link between Quetta and Taftan. For this purpose, he said, funds could be raised together with Iran and by using the forum of ECO or the Islamic Bank.—APP