Iran plastic expo key factor in boosting exports to Pakistan
By Syed Ali Hassan
Iran Daily’s correspondent in Pakistan
The 17th IranPlast International Exhibition recently held in Tehran has played a crucial role in introducing Iran’s plastic industry to countries in the region.
According to businesspeople from around the world and neighboring countries, Iran’s plastic industry has made significant progress in the last years in terms of raw material production.
Setting up a plastic production industry in Iran is seen as a profitable investment. As Iran produces various raw materials for the plastic industry, Iranian policymakers have restricted the export of raw materials but are encouraging the export of value-added products.
Any mechanism adopted to remove barriers to imports and exports in dollar terms, due to Western sanctions against Iran, will increase the value of commodities. Therefore, Iranian authorities should consider removing the restrictions on the export of raw materials to neighboring countries.
Under the leadership of Syed Ali Hassan, director of Artman Atlas Group of Companies, the participation of Pakistani businessmen in the IranPlast expo has opened avenues for mutual trade. According to Imran Chenyuti, a reliable Pakistani businessman in Iran, if the Iranian government lifts restrictions on the export of raw materials, the exports of plastic-related raw materials from Iran to Pakistan alone may increase to $2 billion.
Farid Ahmed Bengali, a leading investor associated with Pakistan’s plastic industry, highlights that the industry, along with other sectors, is declining in Pakistan. This is primarily due to the significant increase in electricity and petroleum prices, as well as the non-supply of raw materials.
The lack of open letters of credit in Pakistan for the past 18 months has resulted in a shortage of dollars in the country. The controlled value of the dollar has artificially affected the economy over the last 12 years. If general elections are held and the elected government takes appropriate policies while military intervention is halted, Pakistan’s economy is likely to recover in 20 years.
Farid Ahmed Bengali believes that by relocating his factory to Iran, he can benefit both nations. He has chosen Iran’s Chabahar Free Zone, which is only eight hours away from Pakistan’s most populous commercial and port city of Karachi. To successfully move the factory, the Iranian government is requested to provide concessions such as a credit line for raw materials and construction support.
Similarly, another manufacturer participating in the Iran plastic fair, Mohammad Khalid, also expresses interest in setting up industries in Chabahar.
In a joint meeting with investors from Iran’s private sector and Iranian exhibition hosts, a consensus was reached regarding investment in Iran’s free zones, and a memorandum of understanding is expected to be drafted soon.
Imran Chenyoti, a reliable businessman from Pakistan, mentions that he already imports plastic products from Iran. However, due to the absence of a direct purchasing system from plastic product factories in Iran, the prices of valuable raw materials increase, which leads to higher export prices.