Issues & Analysis
Iran refuses to buy rice,
defers wheat import
ISLAMABAD-Federal Minister of
Commerce Abdul Razak Dawood Wednesday said that Iran had
deferred importing wheat from Pakistan terming it diseased,
and had also refused to buy rice.
Iran has said that it will send its technical team to Pakistan
to examine wheat and on the subject of its clearance it will
place the order, the minister said this while addressing a
press conference after his return from Tehran, where he had
gone to attend the 12th Joint Ministerial Commission (JMC)
meeting.
The main item on the agenda of the meeting was wheat export,
and as far as commercial matters are concerned, there are no
problems, however, Iran has identified that Pakistani wheat
contains two diseases therefore they will not import it until
its clearance by its relevant department, Dawood informed.
The minister said that a technical team from Iran’s Government
Trading Corporation would be here soon and I am sure that our
wheat will be cleared for export. I am not worried since this
is for the first time in the history of the country that we
are going to export wheat.
On the issue of rice, the Iranian government has told us that
since their local production of rice has gone up, they don’t
need to import rice, the minister said, adding, well it is
their own free will, we cannot force them. No doubt, Iran was
once the leading rice importer of Pakistani rice.
However, the minister was of the firm view that if both the
countries want to enhance bilateral trade, the issue of
transport must be resolved that includes railways and trucks.
The meeting discussed the issues and both sides agreed to
allow the trucks to go to more destinations than presently
which is only one for both the countries.
The minister said that Iranian trucks can come to Quetta only,
which is 620 km and our trucks are going up to Zahidan only
which is 90 km, and above all they are putting tax on our
trucks whereas we are not.It was agreed that Iranian trucks
would now be able to go to Karachi, Multan, and Lahore apart
from Quetta, and Pakistani trucks would also go up to Teheran,
Mashad, Bandarabbas, and Isphahan, the minister said, adding,
we have also informed that from now onwards we will also tax
their trucks, to which they agreed. The minister said that if
the export of wheat is also approved then it will also go by
trucks.
The minister said that a sub-committee on the issue of trucks
was also formed in the 12th JMC, which will ensure
implementation of all agreed decisions. Razak Dawood said that
there were certain restrictions on the import of Pakistani
mangoes, which now they have lifted, and further Pakistan will
also be able to export oranges in the coming season.
The commerce minister said that on the issue of rail
transport, both sides agreed to revise the 1959 agreement, and
an Iranian team would be here to further discuss this issue.
Pakistan’s concern on this agreement is that rates are very
low, and we have informed that Pakistan wants to enhance the
rates on the rail transportation of Iranian goods, the
minister said.
The Iranian government has informed us that they are expanding
their rail track and intend to take it to Turkey by 2004. The
minister said that Pakistan would benefit a lot from this
since till now rail track access was available up to Zahidan
via Taftan, now it would be able to access Turkey, and other
European markets through rail network.
The minister said: The Iranian government had asked us to
improve the rail track on our side of the country, which is
from border to Quetta. The rail track is coming from Taftan.
During the JMC we have also expressed our will about reaching
a trade agreement of a more wider nature, like the one
Pakistan intends to have with Sri Lanka and Kenya. He said the
agreement would focus on areas such as textile, auto parts,
chemicals, aluminum, iron ore etc.
Pakistan’s textile exports to Iran can go up since they need
Denim and synthetic, whereas it (Iran) would export aluminum
and iron ore, he said.Further, the minister said the JMC
meeting agreed to establish Common Border Export Market. We
would find a suitable place and the items would also be listed
which would be based on the markets of both the countries to
avoid the menace of smuggling etc. There would be quantity
restrictions as well.
They raised the issue of night parking for their trucks in
Pakistan, and we have agreed to provide them the facility at
Quetta through NLC stations, the minister said, adding, same
would be facilitated by NLC in Multan, Lahore, and
Karachi.Replying to a question, the minister said that they
did not touch the issue of quantity of wheat to be exported to
Iran, however, Iran every year imports about 7 to 8 million
tones and initially Pakistan would like to export 500,000
tones.
The issue of gas pipeline was not on the agenda of the 12th
JMC, however in the sideline meetings we discussed and
conveyed that in principle Pakistan had no objection to
Iran-India gas pipeline, the minister said while replying to a
question. The minister agreed that trade balance is in Iran’s
favour now specially when Pakistan has started importing oil
directly from Iran. July 27
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