ISLAMABAD – Rice exporters and traders in Pakistan emphasize the position of the Islamic Republic of Iran as a major market for Pakistani rice from the Islamabad government to establish a strong banking system between the two countries or implement a “special SVP mechanism” to boost trade, especially between They demanded Iran and Pakistan.
According to IRNA on Monday, Pakistani businessmen and economic institutions, especially the private sector, apart from rice, stressed the need to use banking capacity between Tehran and Islamabad to facilitate trade and make better use of the two neighbors’ trade and economic ties.
The chambers of commerce in Pakistan have repeatedly raised the idea of ​​using national currencies between Iran and Pakistan, saying that the lack of a banking system is the main obstacle to increasing bilateral trade and increasing the difficulties of traders between the two countries in achieving mutual trade.
Pakistan is the fourth largest exporter of rice in the world. Rice is cultivated on 2.89 million hectares of land, which accounts for 10 percent of Pakistan’s total arable land, and in 1997 alone was worth more than $ 2 billion.
The Pakistan Business Recorder reported today that the Punjab Rice Research and Development Organization has proposed to the Pakistani government to set up a strong banking system to increase rice exports to the Islamic Republic of Iran and to develop cleanliness.
The report states: The proposal was made by prominent rice exporters during the 19th meeting of the board of directors of this organization in Lahore. Participants stressed that Iran is one of Pakistan’s largest rice markets, but that the lack of a banking system between the two countries has prevented exports to that country.
According to Pakistani experts, the country is able to improve its exports by entering the Iranian market. The meeting also examined the declining trend in exports this year, and traders called on the government to provide special facilities to increase exports.
A 16-member delegation from the Pakistan Rice Exporters Association (REAP) traveled to Tehran in April 2016 to explore trade and investment opportunities in Iran and increase rice exports.
During their visit to Tehran, Pakistani exporters met with members of the Tehran Chamber of Commerce, Industries and Mines and the Mashhad Chamber of Commerce and Industries.
According to Pakistani economic activists, Iran imported more than 800,000 tonnes of basmati rice from Pakistan before the 2010 sanctions. According to Pakistani rice exporters, the lack of a communication channel between the two countries is one of the main reasons for the decline in bilateral trade.
Kenya and China are also among Pakistan’s largest buyers of basmati rice. Twenty-five percent of these exports go to Africa.
Pakistan produces more than 7 million to 7.5 million kilograms of rice every year, of which more than 4 million kilograms are exported. This is about 70% of Pakistan’s total rice production.