A significant offer that if implemented would make Afghanistan less relevant in strategic terms for Pakistan.
http://www.dawn.com/2006/12/20/top1.htm
Tehran offers trade corridor to Islamabad: Transit facility for exports to China sought
Iran on Tuesday offered its trade corridor to Pakistan for exports to Russia and Central Asian republics and sought a similar facility from Pakistan for its exports to China. “We are ready to provide transit facilities through land route to Pakistan," visiting Iranian Deputy Commerce Minister Dr Sadegh Mofatteh said at a press conference. He said Iranian banks would soon open their branches in Pakistan, adding that permission for the purpose had already been granted by the government of Pakistan. He said Iran was keen to make Pakistan its partner in trade and wanted to increase trade volume between the two countries from the current $650 million to $1 billion. It also wanted to enhance import of rice from Pakistan, which is presently 200,000 tons per annum.
Mr Mofatteh said he met chambers and federation officials in Karachi and the union of exporters of rice. He also had a meeting with the minister concerned and discussed ways for improving trade. In reply to a query about the problems the two countries are facing in the trade sector, he said the most important problem for Pakistan was it did not have a major exporter to Iran. He said every item had some specific problems, but the most important for them was rice. Mr Mofatteh made it clear that the import of Pakistani rice would not affect the rice production in Iran, adding that domestic production of rice was not enough. About the proposed Iran-Pakistan-India gas pipeline, the deputy minister said a working group was already working on it, adding that his country gave high priority to Pakistan for being its trade partner, and it would be good for the people as well as the government of Iran. He said Iran and Pakistan shared borders and had close cultural links, adding that Iran was willing to resolve every problem on its side and wanted Pakistan to reciprocate in the same manner. He emphasised the need for having a close coordination between government officials and private sector of both the countries. When asked why Iran had switched over to the euro instead of the dollar for transaction, Mr Mofatteh said there was no specific reason for that, adding that the usage of different foreign currencies facilitated trade with other countries.
APP adds: Meanwhile, the Iranian deputy commerce minister discussed matters relating to bilateral trade with Commerce Minister Humayun Akhtar Khan. Mr Khan told the visiting minister that Pakistan was a big exporter of orange, but Iran had quarantine requirement on the export of Pakistani fruits to Iran. He said that no such quarantine conditions were ever imposed even by European countries on import of fruit from Pakistan.The Iranian minister said that Pakistan could export its surplus potato to Iran, adding that there was a considerable potential for expanding trade between the two countries. Bilateral trade between Pakistan and Iran has jumped from $141.7 million in 1999-2000 to $638 million in 2005-06. Export from Pakistan has increased from $24 million in 2000-01 to $188 million in 2005-06. Pakistan and Iran had signed a preferential trade agreement in March 2004. The agreement became operational in September 2006. Pakistan and Iran had granted tariff concessions on more than 600 items under the agreement.