Dhaka considers Tehran a big potential market as various sanctions on Iran are going to be withdrawn following its conclusion of a nuclear deal with world powers, officials have said.
The two nations are set to sit for second foreign office consultation in November where trade and investment will lead the talks, they added.
The ministries and departments concerned have been asked recently to furnish information to the foreign ministry on possible areas of co-operation with Iran aiming to boost bilateral trade and investment.
Bangladesh's trade with the Islamic Republic has been hindered as western countries have imposed various sanctions on Iran which include investments in oil, gas and petrochemicals, exports of refined petroleum products and business dealings with the Iranian Revolutionary Guard Corps.
The sanctions also include banking and insurance transactions (including with the Central Bank of Iran), shipping, web-hosting services for commercial endeavours and domain name registration services.
Officials said bilateral trade and investment could not be boosted mainly due to the sanction on financial transactions. The sanctions on various products have thinned trade basket between the two nations, causing lower bilateral trade.
A foreign ministry letter sent to various ministries and departments said Iran concluded a nuclear deal with world powers in July this year and expected that various scansions will be withdrawn by November this year.
"This would bring dynamism in the Iranian economy and create new opportunities for Bangladesh for engagement and co-operation in different fields," it said.
Sources said the foreign ministry has requested the ministry of finance to provide update on the status of co-operation between Dhaka and Tehran in banking sector and any other issues including guarantee for export credit to be granted to Bangladeshi buyers.
It also requested the ministry of commerce (MoC) to identify trade barriers among Bangladesh and Iran. Besides, the MoC has been asked to suggest ways to enhance trade and co-operation with Tehran.
Statistics show that bilateral trade between the two countries is still very meagre as Iranian export was hindered severely because of the sanctions. Dhaka's import from Tehran has been continuing to decline during the last couple of years.
In the fiscal year 2012-13, Bangladesh exported goods worth US$ 75 million to Iran and imported goods worth only $ 7.0 million.
Bangladesh's major exports include agri-products, chemical products, raw jute, jute goods, knitwear and woven garments. The country's major imports from Iran include mineral products, products of chemical or allied industries, plastics and articles thereof, rubber and articles thereof, and textiles and textile articles. A senior MoC official told the FE that the majority portion of Bangladesh's export earnings from Iran comes from jute and jute goods sector.
"As sanctions on the country are being withdrawn, Iran's industrial production will increase manifold leading to importing various raw and finished goods. We are examining ways how to raise export there," he said.
When contacted, Executive Director of Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman told the FE that the domestic economy of Iran will pick up following withdrawal of sanctions.
As a result, he said, demand for raw materials and finished goods will increase there. "Iran is a big and resourceful country. If we can make entry timely with quality goods, there is heavy potential of making significant gain."
He said both Bangladesh and Iran are the members of Indian Ocean Rim Association (IORA) under which they agreed to strengthen economic co-operation particularly on trade facilitation and investment.
Now Bangladesh can take the opportunity of raising export to Iran as an IORA member and request investment from there, he added.
   syful-islam@outlook.com
Dhaka moves to tap potential as sanctions on Tehran go
Syful Islam | Published: October 31, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
Share if you like