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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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