ISLAMABAD, Aug 26: Commerce Minister Humayun Akhtar Khan has said the preferential trade agreement (PTA) between Pakistan and Iran would be effective from September 1, 2006, which would increase the volume of bilateral trade.

He stated this in a written reply to a question from MNA Raja Muhammad Asad Khan in the National Assembly, who sought clarification from the minister about the steps taken for reducing the trade deficit with Iran.

Mr Khan said Pakistan signed PTA with Iran on March 4, 2006, which was ratified by the two governments.

He said tariff preferences granted by Iran on 309 tariff lines would be effective from September next. The Export of items granted preferential tariff line was likely to increase considerably, he added.

The minister disclosed that Pakistan intended to enlarge the ambit of the PTA with a view to deepening of tariff concessions. A proposal for entering into early harvest programme--a prelude to FTA-- was also under consideration, he added.