During the 21st session of the Joint Economic Commission (JEC), Pakistan and Iran pledged to finalise the bilateral Free Trade Agreement (FTA) within the next six months.
Currently, the trade volume between countries is not commensurate with its true potential. Therefore, the agreement will likely increase the volume of bilateral trade to $4 billion. Under the FTA, both sides will negotiate to reduce tariffs and exchange trade lists in different sectors.
Besides this, to promote transit trade, it had been decided to establish six border markets, and the work on establishing three had already been started, while work on the other three will also start soon. For further transit trade promotion, an agreement will also be signed in the next three months, through which free economic zones will be established in the two countries.
Moreover, during the 21st session of JEC, several other agreements were signed by the two countries, including two related to media cooperation and tourism promotion. Another agreement was signed by the National museums of the two countries for promoting collaboration.
Pakistan has always looked to the Iranian market and investors as it offered a very friendly trade and investment environment in the Special Economic and Industrial Zones under CPEC. Also, Pakistan and Iran have a five Years Strategic Trade Partnership Plan which needs to be renewed for the next five years (2022-2027). To promote further trade and strategic partnership, Pakistan and Iran agreed to begin bartering, under which Pakistan would get apples from Iran by sending them oranges. It has been noted that removing obstacles in bilateral trade between the countries, especially in agriculture, can ensure food security in the two countries. For this purpose, Iran has agreed to increase cooperation with Pakistan in the agricultural sector to meet the agricultural requirements of Pakistan and introduce its agricultural products in Iran.
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