Pakistan media report an end to the deadlock between Pakistan and Iran over a barter deal that includes urea shipments to Pakistan. The deal was hung up on Iran complaining about the price and quality of Pakistan wheat, but negotiators removed the last roadblock this past week.
Under the barter arrangement Pakistan will send Iran about 1 million mt of wheat at the prevailing international market price. In return, Iran will send iron ore and fertilizers.
The deal has been under discussion since February. The delay was put on Iran’s reservations about accepting any wheat with a fungal disease known as Karnal bunt.
In the end, Pakistan showed that its wheat has a 0.3 percent ration of the disease while international standards allow 1 percent. Iranian negotiators were insisting on zero percent.
No word yet on how many tons of fertilizers Iran will send.
Iran-Pakistan cross-border trade is pegged at US$10 billion. Other arrangements being negotiated include oil and natural gas pipelines and refineries to move Iranian petroleum products through Pakistani ports.