Iranian President’s Visit to Karachi Expected to Bolster Pakistan-Iran Trade Relations

Karachi, The arrival of Iranian President Ebrahim Raisi for a three-day visit to Pakistan is set to strengthen bilateral trade and economic relations, as announced by the leaders of the United Business Group (UBG). Accompanied by a substantial business delegation, President Raisi's visit underscores a concerted effort to enhance collaboration between the two nations.

According to United Business Group, discussions during President Raisi’s visit will primarily focus on advancing joint energy projects, including the ambitious $7.5 billion Iran-Pakistan gas pipeline project intended to alleviate Pakistan's persistent power shortages. The project aims to supply natural gas to Pakistani power plants, which is critical for the country’s economic development.

UBG also highlighted the potential to increase bilateral trade to $5 billion. Current figures show Iran’s exports to Pakistan total $1.448 billion, whereas Pakistan’s exports to Iran are approximately $842 million. The group emphasized the deep historical, cultural, and economic ties between the countries and the need to address issues such as trade imbalances and the lack of effective payment mechanisms.

Potential solutions include implementing barter trade systems and transactions in local or third-country currencies. Moreover, UBG stressed the importance of fully leveraging the preferential trade agreement between Pakistan and Iran, which offers concessions on numerous tariff lines, aiming to cover around 18 percent of the Most Favored Nation (MFN) tariff of both countries.

The visit of President Raisi is anticipated to lead to significant discussions that could pave the way for enhanced economic cooperation and mutual prosperity for both nations.

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