Iran has reportedly offered to export cement on barter basis following a trade mission to Pakistan, led by the country's president, Hassan Rouhani.

Pakistan's Ministry of Commerce on its part is exploring various avenues to enhance bilateral trade to US$5bn in five years, in accordance with the vision of the top political leadership of the two countries.

Separately, Khouzestan Morteza Lotfi, managing director of Fars Cement Holding Company, Iran, told media that his country has agreed to export cement to Pakistan as per a swap deal for re-exports to targeted Asian markets. He said part of the exports will be for Pakistan’s domestic consumption and the rest will be re-exported under Iran’s name to the targeted markets throughout Asia.

He said the two sides have also agreed to set up a cement factory in Quetta, the capital of Balochistan in Pakistan but did not share other information about the project.

Earlier this month, the All Pakistan Cement Manufacturers Association (APCMA), in its budget proposal, pointed out that Iranian cement was flooding into the border areas of Balochistan and is being sold at lower prices as compared to locally produced cement. This is detrimental for local manufacturers and in the longer run can challenge the survival of the local industry. Additional regulatory duty should be immediately imposed on imports of Iranian cement and some prior approval mechanism from the government should be in place regarding quality of Iranian cement imported in Pakistan, remarked the APCMA.