The Special Working Group of the Pakistan-Iran Joint Economic Commission has expressed concerns over delays to several measures that would help facilitate trade between the two countries.

Amongst the delayed measures are proposals to provide guarantees for letters of credit (L/Cs) for trades between Iran and Pakistan.

Guarantees planned

In 2005, the Export Guarantee Fund of Iran (EGF) said it would provide cover to Pakistani exporters against the risk of non-payment of all kinds of credit including short- medium- and long-term credits, including L/Cs opened by Iranian buyers.

Iran's export credit agency also said it would provide cover against the risk of non-repayment of long- medium- and short-term credits extended by Iranian banks or exporters to Pakistani buyers. (DC World News, 8 August 2005)

Implementation needed

Even though these are old proposals, they are still apparently under consideration by business groups in Pakistan. The working group is concerned about this lack of progress.

It has also expressed concerns over delays in setting up of a branch of Bank Melli Iran in Karachi as well as slow progress in the development of road and rail links between the two countries.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.