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Economist: Development of Iran-Pakistan trade through bartered deals, cash payments

Tehran, IRNA – An economist said on Tuesday that bartered and cash deals are among the strategies that can lead to the development of trade with neighboring countries, and as a first step, signing a memorandum of cooperation with Pakistan can help in this respect.

The IRNA Economic Desk talked with Hossein Ruhisefat, analyst of India and Pakistan, who said that Iranian President Ebrahim Raisi has many times during his first 100 days in the office emphasized the need to expand economic ties with Iran’s neighbors and considered it a strategy for decreasing the negative effects of sanction and achieving long term economic objectives.

“Development of trade ties with neighboring and regional countries has been the priority of the foreign policy and appropriate apparatus, pursuing and implementing that policy have all been designed and implemented at the Foreign Ministry,” he added.

He said that as a first step, a trade memorandum of understanding (MOU) was signed with Pakistan prime minister’s consultant in late November.

In that MOU increasing the bilateral trade volume to five billion dollars within a two-year period is an objective, by paving the way for making investments of Pakistani partners in Iran.

Elimination of trade difficulties and paving the way for doing free trade with Pakistan within the next three months is another article of the signed document between Iran and its neighboring countries, including Pakistan.

Iran and Pakistan are complementary of each other in trade transactions, and by the expansion of cooperation, including in transportations, bartered deals, decreasing the customs tariffs, and establishment of border markets, which can overcome many difficulties.

The India and Pakistan economic affairs analyst said that under the sanctions conditions one of the ways to resolve the emerged difficulties is to establish trade ties with neighboring countries.

He referred to the activities of two border markets on Iran-Pakistan shared borders during the current year, reiterating that the required agreements for those markets are achieved and the establishment of two more border markets is on the agenda.

He said that the establishment of border markets in regions such as Sistan and Baluchestan helps the local residents and improves their living conditions noticeably.

Ruhisefat referring to the plan for doing trade with national currencies of different countries said that the current difficulties are in the currencies that cannot be transferred to Iran, but by doing exports and imports using the national currencies of neighboring countries, both countries can make their payments rapidly and easily.

He said that by solving the economic problems the trade volume of Iran and Pakistan can be increased to five billion dollars, adding that bartered transactions are one of the ways to reach that end, on condition that the two countries' economies will be complementary of each other and the production capacity of both will respond.

Source: Islamic Republic News Agency - IRNA

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