TEHRAN: Pakistan and Iran are all set to start direct talks for a free trade deal in September, media reports suggested Wednesday.
According to a senior Iranian trade official, an agreement may be possible until the end of the Iranian calendar year in March 2024. “If we agree on free trade with this country this (calendar) year, it will be a major accomplishment,” head South Asia Department at Iran’s Trade Promotion Organization (TPO), Hadi Talebian said on Tuesday.
Talebian said a free trade deal with Pakistan will have its own complications since the balance of bilateral trade is largely in Iran’s favour.
He was of the view that such a deal will contain “special arrangements” and will be much more beneficial to Iran than a barter mechanism proposed by some businesses and government officials in the two countries.
Iran is currently in a preferential trade agreement with Pakistan under which the two nations have reduced tariffs on imports and exports of certain commodities.
The two nations have also agreed to launch six major border markets to allow free trade between people living along their frontiers.
Earlier in June, Pakistan allowed barter trade with Iran, Afghanistan and Russia for certain goods, including natural gas and petroleum.
According to the official figures, annual trade between the two countries reached nearly $2.4bn in the year to March of which some 1.8bn were Iran’s exports to Pakistan. Iran expects bilateral trade with Pakistan to increase by up to 20% in the year to March 2025.
