Iran and Pakistan are expected to sign a free trade agreement (FTA) within the next six months, says a senior Pakistani government official, amid efforts by the two neighbors to boost their bilateral trade.

Pakistan’s Minister for Commerce Naveed Qamar said on Thursday that Pakistan and Iran will in the next few months give a final shape to an FTA that aims to promote the value of bilateral trade between the two neighbors to up to $4 billion per year.

Iran and Pakistan are currently on a preferential trade arrangement under which the two countries have sought to reduce some trade barriers and tariffs.

Qamar was quoted as saying by the Associated Press of Pakistan that Islamabad and Tehran will, in the meantime, exchange trade lists for various sectors of their economies while trying to further reduce tariffs on exports and imports to reach a reasonable framework for signing an FTA.

The minister made the comments while attending the 21st Session of Pak-Iran Joint Economic Commission (JEC) in Islamabad where Iran’s Minister for Roads and Urban Development Rostam Ghasemi was also attending.

Qassemi leads a senior delegation of Iranian government officials and business representatives during his trip to Pakistan.

The minister said on Wednesday that the decision by Iran and Pakistan to hold the JEC meeting after a five-year hiatus showed the two countries were determined to boost their economic ties.

The APP said Iran and Pakistan signed four major cooperation documents during the JEC meeting in Islamabad on Thursday. The agreements will cover cooperation between the two countries on maritime issues as well as on media, tourism and ties between their national museums.

TEHRAN – At the end of the 21st Session of the Pak-Iran Joint Economic Commission which was held in Islamabad on Thursday, the two sides inked agreements to expand relations, especially in trade and maritime areas.

Iranian Transport and Urban Development Minister Rostam Qasemi and Pakistani Minister for Commerce Naveed Qamar inked four memorandums of understanding in the fields of trade, tourism, maritime, and media, IRNA reported.

On the sidelines of the signing ceremony, the Pakistani official said the two neighboring countries are expected to sign a free trade agreement (FTA) within the next six months amid efforts to boost their bilateral trade to up to $4 billion per year.

Iran and Pakistan are currently on a preferential trade arrangement under which the two countries have sought to reduce some trade barriers and tariffs.

Qamar was quoted as saying by the Associated Press of Pakistan that Islamabad and Tehran will, in the meantime, exchange trade lists for various sectors of their economies while trying to further reduce tariffs on exports and imports to reach a reasonable framework for signing an FTA.

The two countries agreed on holding the 22nd edition of the event in Tehran next year.

 13% rise in trade

The value of Iran’s non-oil export to Pakistan rose 13 percent in the first quarter of the current Iranian calendar year (March 21-June 21), from that of the same quarter in the previous year, Ruhollah Latifi, the spokesman of the Islamic Republic of Iran Customs Administration (IRICA) said in July.

Iran exported commodities worth $279 million to Pakistan in the three-month period of this year, he noted.

The country also imported goods valued at $196 million from its neighbor in the first quarter of this year, which was 208 percent higher than the imports in the first quarter of the previous year, the official added.

Pakistan was Iran’s sixth major export destination and fourth main source of import in the first quarter of the current year.

Increasing non-oil exports to neighboring countries is one of the major plans that the Iranian government has been pursuing in recent years.

MG

Photo: Iran and Pakistan are currently on a preferential trade arrangement under which the two countries have sought to reduce some trade barriers and tariffs.

TEHRAN – At the end of the 21st Session of the Pak-Iran Joint Economic Commission which was held in Islamabad on Thursday, the two sides inked agreements to expand relations, especially in trade and maritime areas.

Iranian Transport and Urban Development Minister Rostam Qasemi and Pakistani Minister for Commerce Naveed Qamar inked four memorandums of understanding in the fields of trade, tourism, maritime, and media, IRNA reported.

On the sidelines of the signing ceremony, the Pakistani official said the two neighboring countries are expected to sign a free trade agreement (FTA) within the next six months amid efforts to boost their bilateral trade to up to $4 billion per year.

Iran and Pakistan are currently on a preferential trade arrangement under which the two countries have sought to reduce some trade barriers and tariffs.

Qamar was quoted as saying by the Associated Press of Pakistan that Islamabad and Tehran will, in the meantime, exchange trade lists for various sectors of their economies while trying to further reduce tariffs on exports and imports to reach a reasonable framework for signing an FTA.

The two countries agreed on holding the 22nd edition of the event in Tehran next year.

 13% rise in trade

The value of Iran’s non-oil export to Pakistan rose 13 percent in the first quarter of the current Iranian calendar year (March 21-June 21), from that of the same quarter in the previous year, Ruhollah Latifi, the spokesman of the Islamic Republic of Iran Customs Administration (IRICA) said in July.

Iran exported commodities worth $279 million to Pakistan in the three-month period of this year, he noted.

The country also imported goods valued at $196 million from its neighbor in the first quarter of this year, which was 208 percent higher than the imports in the first quarter of the previous year, the official added.

Pakistan was Iran’s sixth major export destination and fourth main source of import in the first quarter of the current year.

Increasing non-oil exports to neighboring countries is one of the major plans that the Iranian government has been pursuing in recent years.

MG

Photo: Iran and Pakistan are currently on a preferential trade arrangement under which the two countries have sought to reduce some trade barriers and tariffs.

Official figures from Iran’s foreign trade during the first four months of the current Iranian fiscal year (March 21-July 22) suggest that the country has registered a $871 million trade surplus with its 15 neighboring countries.

Iran traded 27.03 million tons of goods worth $16.87 billion, excluding crude oil exports, with its 15 neighboring countries during the four-month period, registering an 18% rise in value compared to the corresponding period of last year, according to Rouhollah Latifi, the spokesperson of the Islamic Republic of Iran Customs Administration.

All changes cited below are in value.

Exports hit 20.71 million tons worth $8.87 billion to register a 22% rise year over year.

Iraq was the biggest destination for Iranian exports during the period with 6.9 million tons of imports worth $2.4 billion, registering 15% YOY decline.

Following were the UAE with 4 million tons worth $2.3 billion (up 39%), Turkey with 3.4 million tons worth $2 billion (up 123%), Afghanistan with 938,000 worth $497 million (down 32%), Oman with 1.1 million tons worth $415 million (up 135%), Pakistan with 855,000 tons worth $377 million (up 10%), Russia with 427,000 tons worth $232 million (up 25%), Azerbaijan with 250,500 tons worth $232 million (up 78%), Turkmenistan with 439,000 tons worth $132 million (up 37%), Armenia with 279,000 tons worth $113.4 million (up 36%), Kuwait with 1.66 million tons worth $58 million (up 35%), Kazakhstan with 207,000 tons worth $49.4 million (down 7%), Qatar with 287,000 tons worth $40 million (down 12%), Bahrain with 3,840 tons worth $3 million (up 43%), and Saudi Arabia with 121 tons worth $15,688 (down 52%), IRNA reported.

Imports stood at 6.32 million tons worth $8.14 billion during the same period, registering a 13% increase compared with the corresponding period of last year, the official added.

The UAE, with 3.6 million worth $4.9 billion was the biggest exporter to Iran, registering a 4% YOY rise, followed by Turkey with 983,000 tons worth $1.8 billion (up 18%), Russia with 930,000 tons worth $599 million (up 39%), Pakistan with 300,000 tons worth $324.5 million (up 298%), Oman with 262,000 tons worth $323.3 million (up 32%), Kazakhstan with 173,000 tons worth $76.2 million (up 167%), Iraq with 39,000 tons worth $54.7 million (down 61%), Qatar with 702 tons worth $13.8 million (up 208%), Azerbaijan with 8,600 tons worth $13.5 million (up 25%), Turkmenistan with 18,200 tons worth $10,6 million (down 23%), Afghanistan with 6,400 tons worth $7.32 million (up 135%), Kuwait with 1,300 tons worth $3 million (down 26%), Armenia with 1,500 tons worth $2.8 million (down 71%), and Bahrain with 28 tons worth $513,000 (up 8%).”

Official figures from Iran’s foreign trade during the first four months of the current Iranian fiscal year (March 21-July 22) suggest that the country has registered a $871 million trade surplus with its 15 neighboring countries.

Iran traded 27.03 million tons of goods worth $16.87 billion, excluding crude oil exports, with its 15 neighboring countries during the four-month period, registering an 18% rise in value compared to the corresponding period of last year, according to Rouhollah Latifi, the spokesperson of the Islamic Republic of Iran Customs Administration.

All changes cited below are in value.

Exports hit 20.71 million tons worth $8.87 billion to register a 22% rise year over year.

Iraq was the biggest destination for Iranian exports during the period with 6.9 million tons of imports worth $2.4 billion, registering 15% YOY decline.

Following were the UAE with 4 million tons worth $2.3 billion (up 39%), Turkey with 3.4 million tons worth $2 billion (up 123%), Afghanistan with 938,000 worth $497 million (down 32%), Oman with 1.1 million tons worth $415 million (up 135%), Pakistan with 855,000 tons worth $377 million (up 10%), Russia with 427,000 tons worth $232 million (up 25%), Azerbaijan with 250,500 tons worth $232 million (up 78%), Turkmenistan with 439,000 tons worth $132 million (up 37%), Armenia with 279,000 tons worth $113.4 million (up 36%), Kuwait with 1.66 million tons worth $58 million (up 35%), Kazakhstan with 207,000 tons worth $49.4 million (down 7%), Qatar with 287,000 tons worth $40 million (down 12%), Bahrain with 3,840 tons worth $3 million (up 43%), and Saudi Arabia with 121 tons worth $15,688 (down 52%), IRNA reported.

Imports stood at 6.32 million tons worth $8.14 billion during the same period, registering a 13% increase compared with the corresponding period of last year, the official added.

The UAE, with 3.6 million worth $4.9 billion was the biggest exporter to Iran, registering a 4% YOY rise, followed by Turkey with 983,000 tons worth $1.8 billion (up 18%), Russia with 930,000 tons worth $599 million (up 39%), Pakistan with 300,000 tons worth $324.5 million (up 298%), Oman with 262,000 tons worth $323.3 million (up 32%), Kazakhstan with 173,000 tons worth $76.2 million (up 167%), Iraq with 39,000 tons worth $54.7 million (down 61%), Qatar with 702 tons worth $13.8 million (up 208%), Azerbaijan with 8,600 tons worth $13.5 million (up 25%), Turkmenistan with 18,200 tons worth $10,6 million (down 23%), Afghanistan with 6,400 tons worth $7.32 million (up 135%), Kuwait with 1,300 tons worth $3 million (down 26%), Armenia with 1,500 tons worth $2.8 million (down 71%), and Bahrain with 28 tons worth $513,000 (up 8%).”

TEHRAN - Iranian Deputy Foreign Minister for Economic Diplomacy Mehdi Safari has met with Turkmen political and economic officials to discuss a range of bilateral issues. 

Safari traveled to Turkmenistan to follow up on agreements signed by the two countries during the recent visit of the Turkmen president to Tehran that happened in June.

In his meeting with Turkmenistan’s Deputy Prime Minister and Foreign Minister Rasit Meredow, Safari explained the Islamic Republic of Iran’s economic possibilities and capabilities. He underlined the need for expansion of economic and trade ties with Turkmenistan and said Iran is ready to also give Turkmenistan access to high seas through southern Iranian ports like Bandar Abbas and Chah Bahar.

The Iranian deputy foreign minister for economic diplomacy said Iran is interested in boosting transit of goods through Turkmenistan, according to the Iranian foreign ministry.

He added that it’s possible to increase cooperation between Tehran and Ashgabat in the oil and gas sector, including the transit of energy carriers from Turkmenistan to neighboring countries through Iranian soil.

Safari further stressed, among others, the necessity of reducing tariffs, reopening the Bajgiran border market, launching the Parsesu border crossing and boosting cooperation between border provinces of the two countries.

In the meeting, Turkmenistan’s Deputy Prime Minister and Foreign Minister also welcomed Safari’s proposals and stressed the need to expand economic and trade cooperation between the two countries.

Safari has also met with Turkmenistan’s Deputy Prime Minister for Agriculture, Environment and Water Diplomacy Annageldi Yazmyradov to discuss possibilities for expansion of cooperation between the two countries.

Safari has also met with Turkmenistan’s Deputy Chairman of Cabinet of Ministers Responsible for Construction and Energy Carymyrat Purcekow.

Safari traveled to Turkmenistan to follow up on agreements signed by the two countries during the recent visit of the Turkmen president to Tehran that happened in June.

In the meeting, Safari underlined the necessity of boosting cooperation between Tehran and Ashgabat in areas of mutual interest. He also said Iran is ready to export goods necessary for construction, building materials, equipment and the energy sector’s technical know-how to Turkmenistan.

Safari added that competent Iranian companies are able to repair Turkmenistan’s electricity power plants. The Iranian deputy foreign minister stressed the need for speeding up the completion of a project to transfer electricity between the two countries. Safari noted that Iran is ready to transit electricity from Turkmenistan to neighboring countries.

In the meeting, Carymyrat Purcekow also welcomed Safari’s proposals and stressed the need to expand cooperation between the two countries in the energy and construction sectors.

TEHRAN - Iranian Deputy Foreign Minister for Economic Diplomacy Mehdi Safari has met with Turkmen political and economic officials to discuss a range of bilateral issues. 

Safari traveled to Turkmenistan to follow up on agreements signed by the two countries during the recent visit of the Turkmen president to Tehran that happened in June.

In his meeting with Turkmenistan’s Deputy Prime Minister and Foreign Minister Rasit Meredow, Safari explained the Islamic Republic of Iran’s economic possibilities and capabilities. He underlined the need for expansion of economic and trade ties with Turkmenistan and said Iran is ready to also give Turkmenistan access to high seas through southern Iranian ports like Bandar Abbas and Chah Bahar.

The Iranian deputy foreign minister for economic diplomacy said Iran is interested in boosting transit of goods through Turkmenistan, according to the Iranian foreign ministry.

He added that it’s possible to increase cooperation between Tehran and Ashgabat in the oil and gas sector, including the transit of energy carriers from Turkmenistan to neighboring countries through Iranian soil.

Safari further stressed, among others, the necessity of reducing tariffs, reopening the Bajgiran border market, launching the Parsesu border crossing and boosting cooperation between border provinces of the two countries.

In the meeting, Turkmenistan’s Deputy Prime Minister and Foreign Minister also welcomed Safari’s proposals and stressed the need to expand economic and trade cooperation between the two countries.

Safari has also met with Turkmenistan’s Deputy Prime Minister for Agriculture, Environment and Water Diplomacy Annageldi Yazmyradov to discuss possibilities for expansion of cooperation between the two countries.

Safari has also met with Turkmenistan’s Deputy Chairman of Cabinet of Ministers Responsible for Construction and Energy Carymyrat Purcekow.

Safari traveled to Turkmenistan to follow up on agreements signed by the two countries during the recent visit of the Turkmen president to Tehran that happened in June.

In the meeting, Safari underlined the necessity of boosting cooperation between Tehran and Ashgabat in areas of mutual interest. He also said Iran is ready to export goods necessary for construction, building materials, equipment and the energy sector’s technical know-how to Turkmenistan.

Safari added that competent Iranian companies are able to repair Turkmenistan’s electricity power plants. The Iranian deputy foreign minister stressed the need for speeding up the completion of a project to transfer electricity between the two countries. Safari noted that Iran is ready to transit electricity from Turkmenistan to neighboring countries.

In the meeting, Carymyrat Purcekow also welcomed Safari’s proposals and stressed the need to expand cooperation between the two countries in the energy and construction sectors.

TEHRAN – Head of Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) has said that over $1.5 billion worth of natural gas is wasted in Iran’s oil and gas fields every year, IRIB reported.

“Studies show that 47.5 million cubic meters of gas is wasted in the country’s oil and gas fields every day, and if we consider a price of nine cents for each cubic meter of gas, the total value of the wasted gas is about 1.5 billion dollars every year,” Masoud Khansari said in a TCCIMA board meeting on Tuesday.

“According to a World Bank report, in the years 2012 to 2021, Iran had the first place in terms of natural gas wastage among the world’s oil-rich countries; natural gas waste increased from 11.1 billion cubic meters in 2012 to 17.4 billion cubic meters in 2021,” Khansari said, mentioning a recent WB report on world’s energy crisis after Russia-Ukraine war.

He noted that the major part of Iran’s wastage is related to the flaring of gases associated with oil.

“I hope that with the measures taken by the Oil Ministry and the expansion of activities to prevent gas flaring, we will see a day when this wastage will reach the lowest possible level and even become zero,” the official said.

The World Bank data indicate that gas flaring is costing oil-rich countries billions of dollars in lost revenues, so that, over the past decade 144 billion cubic meters of gas have been wasted around the world annually; with this amount of gas, 1,800 million megawatt hours of electricity could be produced, which is equivalent to two-thirds of the electricity produced in the entire European Union.

Gas flaring is the process of burning the gas released through certain industrial processes, including oil extraction. In the past, when the demand for natural gas was low and, consequently, producers had little incentive to gather and sell it, it was generally – and more reasonably – dissipated through flaring.

Now, however, natural gas is known to be a valuable means of generating electricity and an important raw ingredient for the petrochemical industry. On the other hand, when released into the air, unrefined gas pollutes the atmosphere by releasing greenhouse gases such as carbon dioxide, causing extensive environmental damage.

Iranian Foreign Ministry has announced that the follow up of the ministry led to Turkmenistan’s permission for transit trucks to pass through the country to go from Iran to Uzbekistan.  

The announcement however says that Turkmenistan has imposed special conditions which requires the truck drivers to observe health protocols.  

Turkmenistan’s new transit regulations have come into force since June 1, according to the Foreign Ministry announcement.   

In order to be able to pass through Turkmenistan’s soil, the truck drivers have to offer documents indicating their COVID vaccination within a maximum 42 days before their arrival in the country.

They also need to have a negative COVID test with them which has been taken in the past 72 hours.   

The country also imposed other COVID restrictions for the truck drivers passing through the country and limits their contacts with local people for instance.

The main border crossings between Iran and Turkmenistan were closed in February 2020 following the outbreak of the coronavirus disease.

The two countries however allowed limited transshipment of goods through a major border crossing nine months later, according to the spokesman of Iran’s customs office (IRICA).

Ruhollah Latifi said that Lotfabad border crossing began to accommodate 10 truck cargoes per day through transshipment early December 2020.

Iran and Turkmenistan will set up a major trade center that can facilitate ties between businesses in the two countries amid efforts to deepen economic relations between the two neighbors.

The establishment of the Tehran-Ashgabat Trade Center was discussed on Tuesday (June 15) during a meeting between Iranian trade minister Reza Fatemi Amin and deputy head of the Cabinet of Ministers of Turkmenistan Batir Atdayev.

Iranian Foreign Ministry has announced that the follow up of the ministry led to Turkmenistan’s permission for transit trucks to pass through the country to go from Iran to Uzbekistan.  

The announcement however says that Turkmenistan has imposed special conditions which requires the truck drivers to observe health protocols.  

Turkmenistan’s new transit regulations have come into force since June 1, according to the Foreign Ministry announcement.   

In order to be able to pass through Turkmenistan’s soil, the truck drivers have to offer documents indicating their COVID vaccination within a maximum 42 days before their arrival in the country.

They also need to have a negative COVID test with them which has been taken in the past 72 hours.   

The country also imposed other COVID restrictions for the truck drivers passing through the country and limits their contacts with local people for instance.

The main border crossings between Iran and Turkmenistan were closed in February 2020 following the outbreak of the coronavirus disease.

The two countries however allowed limited transshipment of goods through a major border crossing nine months later, according to the spokesman of Iran’s customs office (IRICA).

Ruhollah Latifi said that Lotfabad border crossing began to accommodate 10 truck cargoes per day through transshipment early December 2020.

Iran and Turkmenistan will set up a major trade center that can facilitate ties between businesses in the two countries amid efforts to deepen economic relations between the two neighbors.

The establishment of the Tehran-Ashgabat Trade Center was discussed on Tuesday (June 15) during a meeting between Iranian trade minister Reza Fatemi Amin and deputy head of the Cabinet of Ministers of Turkmenistan Batir Atdayev.