Karachi: Chief Executive of Ta’min Petroleum & Petrochemical Investment Company (TAPPICO) of Iran, Reza Babak Afghahi, emphasized the necessity of eliminating unofficial trade between Iran and Pakistan to bolster economic ties during a meeting at the Karachi Chamber of Commerce & Industry.
According to Karachi Chamber of Commerce and Industry, Afghahi expressed concerns that many Iranian products enter Pakistan through unofficial channels, which undermines potential official trade benefits. He advocated for establishing stronger business connections to enhance trade volumes and profitability through official channels. Afghahi pointed out that Pakistan’s import of petrochemical products, which totaled US$5 million last year, could be produced locally through Iranian joint ventures, enhancing economic collaboration.
Commercial Attaché Iranian Consulate Karachi Morad Nemati, along with other dignitaries, participated in discussions focusing on overcoming trade barriers and enhancing bilateral relations. Despite the geopolitical challenges posed by sanctions, Afghahi reassured the business community, citing Iran’s ability to export significantly to countries like the United States as an example of overcoming such hurdles.
The meeting also highlighted the broader economic potential between the two nations, with KCCI President Iftikhar Ahmed Sheikh stating that the bilateral trade volume, currently below its potential, could reach up to $10 billion. He emphasized the importance of establishing formal banking channels, finalizing a free trade agreement, and creating a joint free zone to facilitate easier trade and investment.
Sheikh further discussed enhancing regional connectivity and economic stability by investing in infrastructure, establishing border markets, and expanding transportation networks to mitigate illegal trade activities. He invited Iranian investors to engage with the China-Pakistan Economic Corridor (CPEC) projects, offering significant opportunities for collaboration in the region’s development.