ISLAMABAD, July 5 (Xinhua) -- Pakistan and Iran have agreed to strengthen bilateral trade and economic ties and vowed to remove potential bottlenecks coming in the way, local media reported on Friday.

A laborer walks past processed rice in a rice-processing factory in the Chiniot district of Punjab province, Pakistan, on Saturday, Oct. 13, 2012. (Photo: VCG)

The understanding came during the first session of the 8th Pakistan-Iran Joint Trade Committee, which was attended by an Iranian delegation, led by Minister of Industry, Mines and Business Reza Rahmani and Pakistani delegation led by Pakistani Prime Minister's Advisor on Commerce and Textile Abdul Razak Dawood on Thursday here.

During the meeting, Pakistan urged the Iranian side to take appropriate measures to remove non-trade barriers so that real potential of bilateral trade could be actualized, suggesting removing various forms of taxation such as road and loads taxes on vehicles which are crossing the borders.

The Iranian side pledged to address all the issues which were hampering bilateral trade on its part, and assured a win-win situation for both sides.

While recognizing the fact that Pakistan-Iran trade relations are not up to the mark, both sides reflected on ways and means to enter into barter trade deal.

"To start barter trade, both countries should select a few items having competitive advantage," Dawood said, adding that in this regard, Pakistan can enhance export of wheat, sugar, rice and fruits to Iran.

During the meeting, Iran also showed profound interest in import of 500,000 tons of rice from Pakistan and asked the Pakistani side to devise necessary mechanism for early shipment.