Pakistan and Iran to Quickly Wrap Up Free Trade Agreement
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April 25, 2024
Pakistan and Iran have agreed to quickly finalize the Free Trade Agreement (FTA), according to a joint statement released on Wednesday. The agreement came as Iranian President Dr. Seyed Ebrahim Raisi wrapped up his three-day official visit to Pakistan.
Both countries aim to strengthen their economic ties by expediting the FTA process and scheduling future sessions for Annual Bilateral Political Consultations (BPC), Joint Business Trade Committee (JBTC), and negotiations for the Joint Economic Commission (JEC). They also plan to encourage regular exchanges of economic and technical experts, as well as delegations from Chambers of Commerce, to boost economic cooperation.
This comes after the US State Department warned about possible sanctions because of business deals between Pakistan and Iran.
Additionally, the declaration of the ‘Reemdan border point’ as an international crossing point under TIR and the opening of two remaining border sustenance markets were agreed upon.
The joint statement highlighted a commitment to increasing high-level visits to bolster fraternal relations, expanding trade and economic cooperation, and transforming their common border into a ‘border of prosperity’ through joint development projects. Both countries also emphasized cooperation in the energy sector, aiming to boost bilateral trade to $10 billion over the next five years.
Efforts to enhance connectivity between the two countries and the broader region, particularly through the Belt and Road Initiative (BRI) and the Economic Cooperation Organization (ECO), were also emphasized. The statement underlined the importance of operationalizing the TIR Convention to facilitate efficient trade and enhance regional integration.
During the visit, which took place from April 22-24, 2024, President Raisi was accompanied by a high-level delegation including the Foreign Minister of Iran and other cabinet members.
