- 28 points joint statement underscores significance of energy cooperation and electricity trade
- Two countries also declare Reemdan border point as an int’l border crossing point under TIR Convention
ISLAMABAD: Iran and Pakistan have agreed to “expeditiously” finalise a Free Trade Agreement (FTA) and hold the next sessions of annual Bilateral Political Consultations (BPC) and Joint Business Trade Committee (JBTC) as well as the 22nd round of the negotiations of the Joint Economic Commission (JEC) in the near future.
Shortly after the Iranian president departed from Karachi to Tehran, the Foreign Office issued a joint statement detailing bilateral agreements, including plans related to the Pak-Iran gas pipeline project, agreed upon by both nations.
In a joint statement consisting of 28 points, Pakistan and Iran have underscored the significance of energy cooperation and electricity trade, notwithstanding hints from the United States regarding potential sanctions following Iranian President Seyyed Ebrahim Raisi’s recent visit to Pakistan.
The joint statement said, during Iranian President Ebrahim Raisi’s recently concluded visit to Pakistan, Islamabad and Tehran agreed to increase the bilateral trade volume to $10 billion.
The two neighbours also agreed to “enhance mutual interaction through the regular exchange of high-level visits” and facilitate the regular exchange of economic and technical experts, added the statement.
The joint statement further added that the two countries also declared the Reemdan border point as an international border crossing point under the TIR Convention and the agreed upon opening of joint border markets.
The statement from the Foreign Office comes in the wake of a warning from the US State Department concerning the “potential risk of sanctions” associated with business deals between the two countries.
A spokesperson from the State Department cautioned, “We advise anyone considering business deals with Iran to be aware of the potential risk of sanctions.”
Despite this warning, both countries have agreed to expedite the finalization of a free trade agreement (FTA) and aim to increase their bilateral trade to $10 billion over the next five years through collaborative economic projects. These projects include establishing joint border markets, economic free zones, and new border openings.
Discussions on bilateral ties and cooperation took place during delegation-level talks between Prime Minister Shehbaz Sharif and Iran’s President Raisi, who visited Pakistan accompanied by a high-level delegation, including Foreign Minister Amir Abdollahian and other cabinet members and senior officials.
Transforming the common border from a ‘border of peace’ to a ‘border of prosperity’ was a shared goal, with both countries emphasizing cooperation in the energy sector, including electricity trade, power transmission lines, and the Iran-Pakistan gas pipeline project.
Both sides stressed the importance of a long-term, sustainable economic partnership and a collaborative regional economic and connectivity model, particularly for socio-economic development in Iran’s Sistan-Balochistan and Pakistan’s Balochistan provinces.
The joint statement also highlighted commitments to strengthen fraternal relations by promoting academic, cultural, and tourism activities, enhancing tourism to historic religious sites, and forging regular cooperation between political, military, and security officials to combat various threats, including terrorism, narcotics smuggling, and human trafficking.
Efforts are underway to finalize the FTA, with plans to hold upcoming sessions of the Annual Bilateral Political Consultations (BPC) and Joint Business Trade Committee (JBTC) as well as the 22nd round of negotiations of the Joint Economic Commission (JEC). Additionally, both countries aim to facilitate the regular exchange of economic and technical experts and delegations from chambers of commerce to intensify economic cooperation.
Other agreements include the operationalization of barter trade mechanisms, full implementation of the TIR Convention for efficient and barrier-free trade, and expansion of connectivity between Gwadar and Chahbahar ports.
On the international front, both countries condemned terrorism in all its forms, stressed the importance of peaceful dispute resolution, and called for the peaceful settlement of the Kashmir issue and an end to Israeli aggression against Palestinians.
Furthermore, they expressed support for combating Islamophobia and welcomed the adoption of the UN General Assembly Resolution titled “Measures to Combat Islamophobia,” calling for the early appointment of a United Nations Special Envoy to address Islamophobia.
Raisi concluded his inaugural three-day official visit to Pakistan with what the Ministry of Foreign Affairs described as “productive discussions” between the two nations.
During his stay, President Raisi engaged in meetings with President Asif Ali Zardari, Prime Minister Shehbaz Sharif, Chief of Army Staff (COAS) General Asim Munir, Senate Chairman Yusuf Raza Gilani, Speaker of the National Assembly Sardar Ayaz Sadiq, as well as chief ministers and governors from Sindh and Punjab.
Accompanied by his spouse and a high-level delegation, including the foreign minister, cabinet members, senior officials, and business representatives, Raisi visited Islamabad, Lahore, and Karachi.
In Lahore, he paid his respects at the mausoleum of Allama Muhammad Iqbal and visited GC University, where he met with CM Maryam Nawaz and Governor Baligh Ur Rehman.
Expressing his affinity with Pakistan, Raisi expressed a desire to hold a public gathering, although logistical constraints prevented its realization.
In Karachi, Raisi addressed a ceremony at the Sindh Chief Minister’s House, emphasizing the enduring strength of bilateral relations between Islamabad and Tehran. He reiterated the historical, cultural, and religious ties binding the two neighboring nations.
During his visit to Quaid’s mausoleum, Raisi paid homage to the founder of Pakistan. He then met with Sindh Governor Kamran Tessori to discuss mutual interests, agreeing to enhance cultural exchanges.
In recognition of his efforts to strengthen bilateral ties, Tessori, as the chancellor of the University of Karachi, conferred an honorary doctorate in philosophy (PhD) upon the Iranian president.
Raisi’s visit, the first by a head of state to Pakistan since the February 8 general election, was marked by stringent security measures and temporary internet suspension to ensure his safety and minimize public inconvenience. Local holidays were declared in Lahore and Karachi to mitigate disruptions.
