Pakistan and Iran are moving forward to set up shared economic regions, according to Pezeshkian's statement
In a significant stride towards enhancing bilateral relations, Pakistan and Iran are focusing on economic cooperation, border trade, and multisectoral joint collaboration. The aim is to raise their annual bilateral trade from the current $3 billion level to an ambitious target of $10 billion.
During Iranian President Masoud Pezeshkian's official visit to Pakistan, 12 agreements and Memorandums of Understanding (MoUs) were signed, covering trade, energy, connectivity, cultural exchange, tourism, transportation, scientific and educational cooperation.
Key points regarding the current status and agreements include:
- Trade Target & Agreements: The two countries have agreed to eliminate trade bottlenecks, improve border facilities, and promote sector-specific cooperation especially in agriculture, energy, services, and logistics. The agreements also provide a foundation for dedicated economic zones and seamless transportation and customs procedures [1][2][3].
- Border Trade and Security Cooperation: Both countries agreed to jointly use and better manage the Mirjaveh-Taftan border crossing to facilitate trade and movement. They acknowledged persistent challenges like terrorism, smuggling, and militant insurgencies along their shared border. Improving border security and countering terrorism groups like Jaish al-Adl and Balochistan Liberation Army are essential preconditions for economic prosperity and enhanced trade [4].
- Sectoral Cooperation: The signed agreements promote broad collaboration in trade, energy projects, tourism, culture, scientific and educational exchanges, and Information and Communication Technology (ICT). Both sides see potential for stronger business-to-business (B2B) engagement and have plans for targeted trade delegations to deepen sector-specific partnerships [1][2][3][4].
- Implementation Roadmap: Delegations from Pakistan and Iran will convene in the near future to finalize a detailed roadmap for implementing these agreements and turning diplomatic goodwill into tangible trade and investment outcomes [1].
Federal Minister for Commerce Jam Kamal Khan called these developments the beginning of a new era in Pakistan-Iran trade relations. He invited Iranian companies to invest in Pakistan's agriculture, minerals, and energy sectors.
Pezeshkian, in his address to the Pakistan-Iran Business Forum in Islamabad, emphasized the importance of unity among the Muslim Ummah and urged Muslim nations to unite for peace [5]. He also lauded the poetry of Allama Muhammad Iqbal as beautiful and inspiring for the Muslim world.
These developments reflect a renewed strategic economic partnership that aims to overcome historical constraints like regional tensions and international sanctions, leveraging shared religious and cultural ties. Regional security and coordinated anti-terrorism efforts remain pivotal to achieving these economic objectives [1][3][4].
In addition, Khan announced the resumption of trade at the Mand-Pishin border market on July 30, and the upcoming operation of Chagai, Kohak, and Gabd-Rimdan markets. These moves are seen as further steps towards boosting bilateral trade and strengthening economic ties between the two nations.
[1] https://www.dawn.com/news/1668717 [2] https://www.geo.tv/latest/351158-iranian-president-masoud-pezeshkian-arrives-in-pakistan-on-a-two-day-visit [3] https://www.thenews.com.pk/print/955151-iran-pakistan-agree-to-boost-bilateral-trade-to-10-billion-dollars [4] https://www.dawn.com/news/1668776 [5] https://www.geo.tv/latest/351158-iranian-president-masoud-pezeshkian-arrives-in-pakistan-on-a-two-day-visit
- The trade target between Pakistan and Iran has been set at $10 billion, a significant increase from the current $3 billion, as part of their joint efforts to enhance bilateral relations.
- The agreements signed during President Masoud Pezeshkian's visit to Pakistan cover various sectors, including trade, energy, connectivity, cultural exchange, tourism, transportation, scientific, and educational cooperation, aiming for stronger business-to-business engagement.
- The two countries have agreed to eliminate trade bottlenecks, improve border facilities, and promote sector-specific cooperation, with a focus on agriculture, energy, services, and logistics, as part of their plan to achieve the $10 billion trade target.
- In addition to trade, the signed agreements also promote collaboration in Information and Communication Technology (ICT), reflecting a broader strategic partnership that seeks to leverage shared cultural ties to overcome historical constraints.
- Federal Minister for Commerce Jam Kamal Khan has invited Iranian companies to invest in Pakistan's agriculture, minerals, and energy sectors, signaling a renewed focus on economic cooperation between the two nations.
