KARACHI, Dec 23: Iran and Pakistan have identified 650 items for reduction of duty and talks on rationalization of tariff will be held soon.

This was stated by the Consul General of Iran Seyed Mousa Hosseini while replying to a question at a luncheon meeting hosted by Karachi Chamber of Commerce and Industry (KCCI) for the visiting trade delegation from Mashhad Chamber of Commerce, Industries and Mines here on Thursday.

President, KCCI, Khalid Firoz and Vice-President Mashhad Chamber Syed Jalal Sekhavati also signed an MoU on this occasion for expanding cooperation, exchange of delegation and information between the two chambers.

Hosseini expressed the hope that bilateral trade will get a boost after the reduction of duties on these items. He pointed out that so far three trade delegations have visited Pakistan in last one month and this was a signal that a new era of bilateral trade was emerging in Pakistan and Iran.

He noted that Pakistan-Iran Joint Ministerial Commission will meet in Tehran next year and Pakistani Premier will head the delegation for this meeting. Similarly, a high-level Iranian delegation will attend Expo Pakistan 2005, in February. Iran will also hold a conference on this occasion.

Furthermore, Iran will hold a single country exhibition at Karachi Expo in the March 2005, he added. Hosseini said Pakistan-Iran Business Council will also meet in Tehran next year and a large Pakistani delegation was expected in Iranian capital.

Syed Sekhavati said the import of citrus fruits including kinnoo from Pakistan was growing gradually and this will further increase in future. He pointed out that Iran was preparing a law for the import of fruits and all exporters including Pakistan have to follow these regulations and standards.

He said formal trade between the two countries was being affected by smuggling. Earlier, the KCCI President, Khalid Firoz said that overall volume of bilateral trade did not reflect the actual potential between the brotherly countries.

He said while Pakistani exports to Iran have increased from $63.19 million in 2002-2003 to $92.40 million in 2003-2004, the imports from Iran have decreased from $303 million to $282 million during the same period. -APP