During a Meeting between Iran’s Commercial Attaché and the Board of Directors:
Emphasis on Removing Obstacles and Facilitating Trade with Pakistan
According to the Public Relations Office of the Iranian Rice Importers Association, in order to address the challenges faced by members regarding rice imports from Pakistan and further facilitate trade with this country, Murad Nemati Zargaran, Iran’s commercial attaché in Pakistan, was the special guest of the Board of Directors of the Iranian Rice Importers Association. The meeting was attended by Karim Akhavan, Chairman of the Board, Hamidreza Eskandari, Vice Chairman, and Mehrdad Mirian, Board Member, as well as several CEOs and representatives of member companies of the association. At the beginning of the session, the secretary general welcomed the attendees, expressing hope that such meetings would continue to strengthen trade relations between Iran and Pakistan and help regulate and streamline trade between the two countries.
Following that, Karim Akhavan, Chairman of the Board, highlighted the key challenges in trade between the two countries. These include: the lack of insurance coverage for rice shipments by Pakistani companies, the absence of bills of lading directed to Iran, the rejection of remittance transfers from Iranian exchange offices, the inability to conduct interbank currency transfers due to sanctions, and the reluctance of Pakistani traders to use the rupee instead of the dollar due to the higher profits they gain from dollar transactions. He noted, “While solving some of the banking transfer issues requires broader national policies, transportation issues can be addressed and resolved through the Iranian commercial attaché.”
Hamidreza Eskandari, Vice Chairman, suggested that if non-oil goods and oil derivatives could be exported through a research-driven approach led by the country’s commercial attachés, based on Pakistan’s market needs, the foreign exchange earned from these exports could be used to address the currency allocation and supply issues related to rice imports.
Next, Mehrdad Mirian, Board Member, emphasized the importance of the approximately 900 kilometers of shared border between Iran and Pakistan, estimating that 70% of imports come through land routes, with the rest entering via sea routes. However, due to poor road quality in Pakistan, additional costs, such as frequent tire replacements for truck drivers, have been incurred. He also proposed exploring a barter mechanism to facilitate trade with Pakistan.
Najibi, CEO of Sabze Bahar Fars Company, raised the issue of Pakistani traders failing to meet their financial commitments on time, while Rashidi, CEO of Mozhdeh Holding, pointed out another problem: the negligence of Pakistani traders in preparing and sending essential documents such as health certificates and certificates of origin. This has caused challenges for association members in dealing with Iran’s Food and Drug Administration.
Summarizing the points raised during the meeting, Nemati, Iran’s commercial attaché in Pakistan, acknowledged the vast potential for trade development with Pakistan and noted that most of the issues could be addressed through correspondence with relevant entities and organizations such as customs, chambers of commerce, and export associations.
At the end of the meeting, the key points agreed upon by the attendees were reviewed as follows:
- The necessity of increasing trust between Iranian and Pakistani traders.
- The formation of a task force as a think tank between the Association and the Chambers of Commerce of Tehran and Karachi.
- The development and facilitation of imports through the Chabahar Port.
- Investment in providing technical and engineering services to Pakistani counterparts and the transfer of knowledge and technology to obtain better terms from Pakistani parties.
- The need for continuous communication between the Association, its members, and Iran’s commercial attaché in Pakistan.
- The proposal to hold the next meeting at the office of the Iranian commercial attaché in Pakistan to further develop relations and follow up on the issues discussed.