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Tehran virtually suspends preferential trade agreement - thenews.com.pk
In a shocking development, economic and trade ties with Iran have plunged to the lowest ebb in Pakistan's history for the first time as Tehran has placed ban on Pakistan's almost all the products, meaning thereby that Preferential Trade Agreement (PTA) is virtually suspended.
This development has apparently taken place after authorities in Iran raised technical objections to Pakistani products. However it is clear that the decision has been taken in Tehran in view of political relations with Pakistan that have been on the decline since long. The Iranians have unilaterally taken the decision to do away with PTA after the alleged infiltration of militants from Pakistan's side into Iran's bordering areas, top officials privy to this development confided to The News.
Secretary Ministry of Commerce Shahzad Arbab did not respond to the SMS questionnaire sent to him by this correspondent over the state of affairs. The questions were: Has the trade volume between Pakistan and Iran which was at $1.163 billion in 2009 drastically dwindled to just over $200 million in 2013; and whether Iran has stopped importing Pakistan's products? Further whether it is true that Iran has unilaterally suspended PTA.
However, official sources said that Pakistani exports to Iran have tumbled to just $62 million in 2013 from $424 million in 2010. For the last one and half year, our fruits and vegetables are banned and now Iran has almost banned all the items.
Sources say that Iran might have taken the plea that Pakistan did not export the wheat to Iran after utilising the Iranian electricity under barter trade mode which was possible even in the presence of ongoing economic sanctions imposed by US, EU and UN for Iran's nuclear ambitions. Though the deal of Iran with US and EU on nuclear technology is almost arrived at and chances are bright that sanctions would be lifted soon. While suspending PTA, Iran has sent the message that Pakistan is not a friend indeed.
China being a sincere friend of Pakistan and to make its centrepiece of China-Pakistan Economic Corridor Initiative successful at all costs, has advised top leadership of Pakistan as well as establishment to ensure friendly and peaceful ties with immediate neighbouring countries of Iran and Afghanistan.
Top brass of Pakistan's establishment has acknowledged the viewpoint of China owing to which Pakistan has kept itself away from Yemen uprising even after the pressure exerted by countries from Middle East to ensure peace with the neighboring countries and avoid Shia-Sunni polarisation in Pakistan.
Sensing adverse impact of unilateral suspensions of PTA by Iran on future strategic and economic ties with regional countries, Pakistan's commerce minister Mr Khurum Dastgir Khan after visiting Kabul, is now geared up to dash to Tehran on April 21 (tomorrow) from Lahore to get suspended Preferential Trade Agreement (PTA) revived.
Iran has now banned the import of rice, kinno and other products from Pakistan owing to which the trade volume has tumbled to just $40 million and the minister is going to get PTA revived with the hope that the trade volume will increase to $400 million in one go. The official said that in case the PTA gets restored, Pakistan's meat export could immediately swell up to $100 million.
Sensing the increasing influence of China in the region particularly after the resolve of Beijing to make Gwadar port commercially viable to make the CPEC a success, India recently sent a high-powered delegation comprising 14 officials headed by Indian commerce secretary Rajiv Kher to Iran. After the visit both the countries have decided to sign a Free Trade Agreement. In addition, India has prevailed upon Iran to allocate separate berth and cargo facilities at Chahbar Port for India so that it could have easy access for its goods to Central Asian States.
