Tehran, 6 December 2022 (TDI): Iran has decided to implement a Preferential Trade Agreement (PTA) with Pakistan to boost exports between the two countries.

The implementation of the Preferential Trade Agreement (PTA) with Pakistan, according to the head of the Trade Promotion Organization of Iran (TPOI), Alireza Peyman-Pak, will greatly increase Iran’s exports to Pakistan.

The issue of tariffs within the context of PTA and Free Trade Agreement (FTA) is one of the tools for developing commerce with the target nations, said Alireza Peyman-Pak, the Deputy Minister of Industry, Mine, and Trade, on Monday evening.

The TPOI Chief referred to the Preferential Trade Agreement (PTA) that Iran and Pakistan had previously signed with Pakistan, which provided customs reductions on roughly 400 commodities.

He claimed that this PTA had increased bilateral trade between the two nations. Iran’s exports to Pakistan will significantly increase once the PTA is introduced, Peyman-Pak added.

The Preferential Trade Agreement (PTA) and Free Trade Agreement (FTA) with the member states of the Eurasian Economic Union (EAEU) will allow Iran to conduct multibillion-dollar trade with those nations, according to the Deputy Industry Minister, who also noted that the PTA and FTA with China are subject to revision.

Also Read: Foreign Minister of Iran, Pakistan to discuss Regional Developments

In order to “create a new climate for economic and regional cooperation between the two countries,” as stated in the agreement, Iran and Pakistan signed a Preferential Trade Agreement (PTA) in August 2006.

However, nearly 17 years after the signing of the aforementioned agreement, the two countries’ annual trade is still less than $2 billion dollars.

Pak-Iran Relations

The two countries of Pakistan and Iran have close historical ties as well as shared religious, linguistic, cultural, and spiritual beliefs.

Iran and Pakistan have generally maintained good relations. The first nation to acknowledge Pakistan’s independence was Iran.

Tehran and Pakistan’s bilateral ties are currently going through a transformation. Between the two nations, there is fresh vigor, increased positivity, and a strong willingness to cooperate.

The Presidents of both nations have dubbed the border between Pakistan and Iran the “Border of Peace, Friendship, and Love.” There are numerous border control techniques in use between the two nations.