Iran and Pakistan will start direct talks for a free trade deal in September, according to a senior Iranian trade official who says an agreement may be possible until the end of the Iranian calendar year in March 2024.

“If we can agree on free trade with this country this (calendar) year, it will be a major accomplishment,” Hadi Talebian, who leads South Asia Department at Iran’s Trade Promotion Organization (TPO), said on Tuesday.

Talebian said that a free trade deal with Pakistan will have its own complications because the balance of trade between the two countries is largely in Iran’s favor.

He said, however, that such a deal will contain “special arrangements” and will be much beneficial to Iran than a barter mechanism proposed by some businesses and government officials in Iran and Pakistan.

Iran is currently in a preferential trade agreement with Pakistan under which the two countries have reduced tariffs on exports and imports of certain commodities.

The two countries have also defined a strategy to launch six major border markets to allow free trade between people living along their frontiers.

Earlier in June, Pakistan issued an order allowing barter trade with Iran, Russia and Afghanistan for certain goods, including petroleum and natural gas.

TPO figures show annual trade between Iran and Pakistan reached nearly $2.4 billion in year to March of which some 1.8 billion were Iran’s exports to Pakistan.

The Iranian government agency expects bilateral trade with Pakistan to increase by up to 20% in the year to March 2025.

President of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) has underlined the need for forming an industrial committee with Uzbekistan to prioritize projects for investment.

Speaking at an Iran-Uzbekistan Trade Forum in Tehran on Saturday, Gholam Hossein Shafei said that making use of potential capacities can ensure long-term relations between the two countries.

He said that Iran’s primary goal is to increase the current $400 million trade with Uzbekistan to $1 billion by yearend.

Shafei noted that Iran’s relations with Uzbekistan have been hindered by some problems including transportation problems, especially the lack of proper rail transportation.  

The Iran Chamber of Commerce president also said that the Iranian private sector welcomes joint investments in the areas of oil and gas, petrochemicals, renewable energies, water projects, power plant industry, transportation, agriculture, automaking and tourism.

Speaking in the meantime, Minister of Investment, Industry and Trade of Uzbekistan Laziz Kudratov noted that the volume of trade between Iran and Uzbekistan has tripled over the past three years.

He, however, said that the annual trade exchanges between the two countries can grow to $1 billion.

The minister underlined the significance of signing a preferential trade agreement between Tehran and Tashkent.   

Kudratov called on Iranian pharmaceutical, agricultural and mining companies to make investments in his country.

Iran’s Minister of Industry, Mine and Trade Abbas Aliabadi, who was also present at the meeting, underlined the need for both Iran and Uzbekistan to prepare a list of items for preferential trade between the two nations.

Aliabadi voiced Iran’s readiness to engage in trade with Uzbekistan in different areas including, pharmaceuticals, agriculture, high-tech industries, mining and tourism.

Head of Iran-Iraq Joint Chamber of Commerce Mehrdad Saadat urged the Iranian government to leave trade with Turkey to the private sector.

He was addressing a conference in the headquarters of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) in Tehran on Sunday where bilateral trade between Iran and Turkey was reviewed.

Referring to Iran’s potential for making $15 billion trade with Turkey, Saadat said that although Iran’s exports to Turkey are on the rise, it is not satisfactory yet.

Noting that the government cannot be a good merchant, he called on the government to provide support for the private sector.

85% of Turkey’s economy is being handled by the private sector and their businesspeople are more inclined to get engaged in interactions with Iranian private sector while the ground is not prepared enough for the partnership of Iranian private sector actors, he said.   

Saadat also urged the need for activating preferential trade between Iran and Turkey as soon as possible.

Uzbekistan's experience in the global fight against poverty was discussed at the International Forum in Tashkent

The II International Forum on Poverty Reduction has completed its work. Within the framework of 6 thematic panel sessions, a wide range of issues were discussed, problems and proposals for developing countries were voiced. The progress made in Uzbekistan in the field of poverty reduction was noted, despite such challenges as the COVID-19 pandemic, instability of the world economy, etc.

Nobel Laureate Abhijit Banerjee, speaking about the reforms aimed at combating poverty in Uzbekistan, focused on the tools used to create social programs, increase the targeting of support for the poor, develop entrepreneurship, and understand the effectiveness of various programs adopted.

May 22, 2023. The II International Forum on the topic "Implementing Best Practices in Poverty Reduction", organized by the Center for Economic Research and Reforms (CERR) jointly with the Ministry of Employment and Poverty Reduction of the Republic of Uzbekistan, with the support of the United Nations Development Program and the United Nations Children's Fund in Uzbekistan in Uzbekistan has completed its work.

The Forum was attended by over 300 participants, including over 100 well-known experts from reputable international organizations and partner states.

Advisor to the President of the Republic of Uzbekistan on the development of economic sectors, implementation of investment and foreign trade policy Ravshan Gulyamov read the Message of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the participants of the Forum.

The Message emphasizes the irreversible nature of the reforms in the field of poverty reduction, which have reached a new level, based on the principle of “person – society – state".

In order to fully implement the social obligations of the state, as well as the development of human capital, five key areas in the fight against poverty were identified.

Firstly, the creation of the most favorable conditions for the private sector and entrepreneurship.

Secondly, the acceleration of the implementation of targeted support programs for poor families within the framework of the “social register” system based on an individual approach.

Thirdly, the provision of more than 100 social services in mahallas to persons with disabilities, women, citizens in need of special attention.

Fourthly, an increase in the amount of funds allocated through the “open budget” system for projects chosen by the population themselves.

Fifthly, the expansion of work to ensure the rights of everyone to access quality education and medical services.

Deputy Prime Minister of the Republic of Uzbekistan Jamshid Kuchkarov, Minister of Employment and Poverty Reduction of the Republic of Uzbekistan Behzod Musayev, Nobel Laureate in Economics, member of the US National Academy of Sciences Abhijit Banerjee, Director General of the French Development Agency Remy Rioux, Professor of Economics at George Washington University James Foster, Director of the Oxford Poverty and Human Development Initiative Sabina Alkire, Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic Edil Baysalov and others addressed their parting words to the participants of the Forum.

The Forum highly appreciated the active actions of Uzbekistan in the fight against poverty and inequality. It was noted that more than 2 million 300 thousand needy families, women, single elderly and persons with disabilities are fully covered by the social protection system.

As Remy Rioux noted, active economic and political reforms have changed the role and place of Uzbekistan at the international level. According to him, Brussels and Paris are closely monitoring the achievements of the country, where the fight against poverty is combined with ecology – reducing emissions into the atmosphere, improving access to clean drinking water.

Abhijit Banerjee, Alfred Nobel Prize Laureate in Economics, noted the most important areas of further research for the formation of anti-poverty policy. Speaking about Uzbekistan, the professor highlighted the tools that are used in our country to create social programs and the targeting of reforms.

"All this is quite a difficult job, but I am glad that your country is showing other countries by its example how to fight poverty. Standing here today, I feel the spirit of change in this country and I am proud that I can say with you: "Let's do it," the Nobel Laureate noted.

Deputy Prime Minister of Kyrgyzstan, Edil Baysalov, noted that Uzbekistan today is the engine and heart of the whole of Central Asia.

"The reduction of poverty in Uzbekistan in 2022, despite the difficult global situation, is sensational not only for the Central Asian region, but also for the whole world. We are delighted with the reforms in your country and are ready to learn from your experience. In the autumn we will have a similar event, I invite experts to take part in it. Thanks to the political will of the leaders of our two countries, the borders are one hundred percent agreed today, this has significantly improved the tourism potential of both Kyrgyzstan and Uzbekistan," the Deputy Prime Minister said.

Within the framework of the Forum, a plenary session was held to study Uzbekistan's experience in poverty reduction, moderated by Obid Khakimov, Deputy Adviser to the President, Director of the Center for Economic Research and Reforms.

Reports were made by the Minister of Poverty Reduction and Employment of the Population of the Republic of Uzbekistan Behzod Musayev, Minister of Overseas Pakistanis and Human Resources Development Sajid Husain Turi, Professor of the Elliott School of International Affairs at George Washington University James Foster, Director of the International Center for Poverty Reduction in China Liu Junwen, UN Resident Coordinator in Uzbekistan Consuelo Vidal Bruce and other.

UNDP Resident Representative in Uzbekistan Matilda Dimovska noted the determination to support the efforts of the Government of Uzbekistan in further reforms to eradicate poverty.

"We are determined to support the efforts of the Government of Uzbekistan to adapt its strategies in accordance with the context of the country to reach the least affluent segments of the population, taking into account the latest data and analysis of people's needs and capabilities. To this end, UNDP supports the development of a multidimensional poverty measurement tool for Uzbekistan. UNDP accompanies Uzbekistan on the way to solving numerous aspects of poverty through the creation of inclusive jobs, gender equality, human potential, rural development and, of course, the transition to a green economy and digitalization," the head of UNDP in Uzbekistan noted.

Munir Mammadzade, UNICEF Representative in Uzbekistan, noted the commitment of the UN Children's Fund to support comprehensive national strategies to combat child poverty in Uzbekistan.

"UNICEF is fully committed to supporting comprehensive national strategies to address child poverty in Uzbekistan. It is imperative to prioritize investments in early childhood development, health, education, and social protection. By doing so, Uzbekistan can harness the demographic opportunity and position itself as a trailblazer in human capital development within the region," noted UNICEF Representative in Uzbekistan.

At the end of the plenary session, A.Banerjee while answering journalists' questions, spoke about J-PAL's cooperation with CERR.

"I think the biggest advantage that we have seen after working with the Center for Economic Research and Reforms is a serious approach to research and a real commitment to the cause. I see that there are many specialists here who are ready to fight poverty and, at the same time, the country's leadership has a firm conviction that the fight against poverty is an important task. And we, for our part, offer a scientific approach to implement this task, and I think that such a combination of efforts of our organizations will eventually bring effective results," the co–founder of the global initiative to combat poverty summed up.

Following the Forum, a number of cooperation documents were signed and new joint projects were announced, including the signing ceremony of a Memorandum of Cooperation between CERR and J-PAL.

Within the framework of the Forum, foreign experts and partners visited the regions of Uzbekistan, the ongoing work on the field based on the “makhallabay” system was presented on the example of the makhalla “Madaniyat” in the Bukhara region. Based on the results of the study of work in the regions, experts noted the need to monitor and evaluate the effectiveness of the impact of strategies and government programs in Uzbekistan, as well as a deeper study of the Uzbek model of poverty reduction in order to further disseminate the acquired experience in developing countries.

Niloofar Assadi, the caretaker of international affairs of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) says that Iran and Pakistan have to devise new mechanisms to give a boost to their bilateral relations.

Assadi made the remarks addressing a major business forum of Iran and Pakistan in Tehran on Wednesday.

The forum was participated by more than 100 Pakistani businesspeople from Karachi, Lahore and Quetta.

Assadi said that the economic ties between the two countries is not satisfactory, urging the need for both nations to devise new mechanisms to enhance relations.    

Referring to major strong links between the private sectors of the two neighboring countries, she stressed the necessity of planning for making joint investment and production and more increased relations in the area of tourism, health tourism in particular.

Assadi also called for reviving a preferential trade agreement with Pakistan, more cooperation on textile and overseas farming, and focusing on facilitating barter trade between the two nations.  

Speaking in the meantime, Abdolhakim Rigi, the head of Iran-Pakistan Joint Chamber of Commerce said that volume of trade between the two nations has grown to $2.5 billion.

He said that bilateral trade between Tehran and Islamabad can double to $5 billion which would require both countries to prepare the necessary grounds, including implementation of preferential trade, lifting the customs bans and making a better use of border markets.

He called the complication of the barter trade a serious obstacle to trade between Iran and Pakistan, adding that the barter trade mechanism proposed by Zahedan Chamber of Commerce is so simple while the interference of the central banks of the two countries has complicated the issue.

President of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) Gholam Hossein Shafei said that promotion of relations with Kyrgyzstan is a main agenda of Iran’s private sector.

Shafei made the remarks in an Iran-Kyrgyzstan Joint Business Forum in Tehran on Sunday which was also participated by his Kyrgyz counterpart Temir Sariyev and Kyrgyzstan’s Ambassador to Iran Tordogan Sedigov and a large number of businesspeople from both sides.  

Shafei, however, noted that poor transportation is hampering trade relations between the two countries.

Putting the volume of trade between Iran and Kyrgyzstan at $80 million, he said that the figure does not match the economic potentials of the two countries.

Shafei voiced the readiness of Iran Chamber of Commerce to take further steps to pave the way for more increased trade with Kyrgyzstan, urging the need for both sides to remove the obstacles on the way of trade cooperation.

Kyrgyz businesspeople eye joint investment projects with Iran

Also addressing the business forum, Head of the Kyrgyzstan Chamber of Commerce and Industry, Temir Sariyev, said that Iran has pushed its way out of the pressure of Western sanctions for developing trade ties with the world.

Sariyev said that Kyrgyzstani businesspeople intend to get a better knowledge of Iran’s trade opportunities to find new ways for enhancement of trade cooperation.  

Noting that representatives from over 40 Kyrgyz countries are present in the forum, he said that the Kyrgyz businesspersons hope to find Iranian partners in trade and joint investments.

Speaking in the meantime, Kyrgyzstan’s Ambassador to Iran Tordogan Sedigov said that businesspeople from his country seek to identify Iran’s trade potentials.

The ambassador said that holding this forum is the first step expressing hope that another such forum will be held in his country.  

He invited the Iranian companies to visit Kyrgyzstan and launch joint production lines in the country.