Islamabad (HRNW)- A research report by financial analysis firm Topline Securities has stated that Pakistan could save $340 million annually on crude oil imports from Iran if economic sanctions are lifted, while bilateral trade between the two neighboring countries is also expected to increase significantly.
According to APP, the report noted that Pakistan and Iran historically maintained strong trade relations before tighter international sanctions were imposed on Iran in 2012. Bilateral trade exceeded $1.2 billion during the fiscal year 2010 but declined significantly after sanctions affected commercial ties.
The report stated that before the sanctions, Pakistan exported products such as rice, quinoa, mangoes, peaches, textiles, pharmaceuticals, surgical instruments and sports goods to Iran, while importing crude oil, industrial raw materials and other commodities.
According to Topline Securities, Pakistan and Iran are committed to expanding bilateral trade to $10 billion through the development of special economic zones along the border.
The report added that if trade relations are fully restored, Pakistan’s exports could increase substantially, while importing petroleum products from Iran at prices estimated to be 10 to 20 percent lower could save the country up to $340 million annually. It also noted that Pakistan could reduce its foreign exchange expenditure through lower-cost imports of steel and industrial raw materials.
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