ANALYSIS OF TRADE TREND BETWEEN PAKISTAN AND IRAN SINCE 9/11

Abstract

Introduction: Pakistan and Iran have generally maintained their positive relations as neighboring countries. But in terms of economic cooperation, they have had relatively low trade volumes compared with their strategic cooperation. There have been several watershed moments for their relations. 9/11 was one of the recently important incidents, which dramatically changed their respective relations with USA. Aim of the study: Thus, this study collects the trade data between two countries on an annual basis since 2001 to show their bilateral trade trend and also conducts interviews on the related experts to seek their opinions why their trade volumes have been low. The trade data between two countries are collected mainly from internet website of AJG Simoes, CA Hidalgo. Methodology: The study is conducted on the basis of qualitative methodology and narrative explanations. Main reason of the low trade volume between Pakistan and Iran has been USA-led international sanctions on Iran, which has reportedly tried to develop nuclear weapon. Moreover, they have failed to diversify trade items for each other. Pakistan’s main export items to Iran have mainly been grains and fabrics, while those of Iran to Pakistan have been limited as the petroleum and oil related ones. Conclusion: Thus, two countries could easily find the alternative trade partners for those kinds of items. Despite of the large political and strategic cooperation, the trade volume between them still remains comparatively low. In this situation, the lifting of international sanctions on Iran and diversification of trade items between Pakistan and Iran would be needed for the enhancement of their trade relations.