Tehran and Islamabad have agreed to promptly finalize a Free Trade Agreement (FTA), as stated in a joint announcement on Wednesday, April 24, marking the conclusion of Iranian President Ebrahim Raisi’s three-day official visit to Pakistan.
The joint statement indicates a mutual agreement between Iran and Pakistan to swiftly conclude the Free Trade Agreement (FTA) and convene upcoming sessions of the annual Bilateral Political Consultations (BPC) and Joint Business Trade Committee (JBTC), along with the 22nd round of negotiations of the Joint Economic Commission (JEC).
This demonstrates a shared commitment to advancing their economic and political relationship through these key agreements and dialogues.
Iranian ambassador to Pakistan, Mr. Reza Amiri-Moghadam’s statement underscores the significance of strong air, maritime, and sea connections in strengthening trade between Iran and Pakistan. Strengthening these links could lead to increased economic cooperation and trade volume between the two countries.
The joint statement referenced the discussions and meetings held during President Raisi’s visit to Pakistan, noting that both sides “examined the full range of Pakistan-Iran bilateral relations.” Additionally, the two neighboring nations agreed to “increase mutual engagement through regular exchanges of high-level visits,” it further stated.
Pakistan and Iran have also committed to enabling a regular exchange of economic and technical experts, as well as delegations from Chambers of Commerce from both countries, to enhance economic cooperation. Furthermore, they agreed to designate the Reemdan border point as an international border crossing point under the TIR Convention and to open the remaining two border sustenance markets, the statement mentioned.
“They also reaffirmed the significance of collaboration in the energy sector, including electricity trade, power transmission lines, and the Iran-Pakistan Gas Pipeline Project,” the statement noted, reiterating their goal to increase bilateral trade volume to $10 billion over the next five years.
“There was an agreement to fully implement barter trade mechanisms between the two countries to facilitate economic and commercial activities,” the countries stated.
Iran and Pakistan “expressed contentment with the close and cooperative relations between the two countries in all Shanghai Cooperation Organization (SCO) mechanisms,” emphasizing the importance of promptly resuming the activities of the SCO-Afghanistan Contact Group.
The two sides also advocated for active cooperation among regional countries within the framework of the Economic Cooperation Organization (ECO).
President Raisi’s cordial invitations to President Mr. Asif Ali Zardari and Prime Minister Mr. Shehbaz Sharif to pay official visits to Iran indicate a desire to further strengthen bilateral relations and enhance cooperation between Iran and Pakistan. Such high-level visits can help deepen ties, foster mutual understanding, and explore new avenues for collaboration between the two countries.
Iran and Pakistan have also concurred on several measures aimed at combating terrorism, as stated in the joint declaration.
Acknowledging that terrorism poses a shared threat to regional peace and stability and significantly hinders the region’s development, the neighboring countries have agreed to “embrace a cooperative approach to address this threat, while fully adhering to the principles of the UN Charter.”
“Both sides reiterated their dedication to the advancement of Afghanistan as a peaceful, unified, sovereign, and independent nation, free from the risks of terrorism and drug trafficking,” the statement said. It is also mentioned in the statement that the two nations reiterated their intent to “boost cooperation on counterterrorism and security and to form a united stance against terrorism.”
Recognizing the importance of coordinating regional and international endeavors to ensure security and stability in the region, Pakistan, and Iran “acknowledged that greater involvement of all segments of Afghan society in fundamental decision-making will contribute to the reinforcement of peace and stability in Afghanistan.”
The statement also highlighted that both nations “emphasized the significance of resolving disputes through peaceful means, utilizing dialogue and diplomacy.”
The neighboring countries also affirmed their commitment to “release prisoners and facilitate extradition based on the Treaty for the Extradition of Criminals and the Accused signed in 1960 and the Agreement on the Transfer of Convicts ratified in 2016.”
Iran and Pakistan also denounced “increasing instances of Islamophobia, the desecration of the Holy Quran, and sacred symbols in certain countries.”
They welcomed the United Nations General Assembly resolution titled “Measures to Combat Islamophobia,” adopted in March.
Regarding the Gaza conflict, Pakistan, and Iran “strongly and unequivocally condemned the continuing aggression and atrocities perpetrated by the Israeli regime against the Palestinian people.” They called for an immediate and unconditional ceasefire in Gaza, as well as “ensuring accountability for the crimes committed by the Israeli regime.”
The two nations also “strongly condemned the attack on the consular section” of the Iranian Embassy in Damascus, Syria, labeling it a “violation of international law and the UN Charter.”
“Recognizing that the reckless actions of the Israeli regime forces constituted a significant escalation in an already volatile region, both parties urged the UN Security Council to deter the Israeli regime from its adventurism in the region and its unlawful acts of aggression against its neighbors and targeting of foreign diplomatic facilities,” the statement added.
Both neighboring nations also underscored the importance of resolving the issue of India-occupied Kashmir through dialogue and peaceful means, in accordance with the will of the people of that region and international law,” it further stated.
On the other hand, the United States has cautioned Pakistan about the potential for sanctions after Pakistan pledged increased security and economic collaboration with Iran during a visit by President Ebrahim Raisi.
The US Department of State cautioned the Pakistani government on Tuesday, April 23, about entering into business agreements with Iran.
“We advise anyone contemplating business transactions with Iran to consider the potential sanctions risk. However, the Pakistani government can determine its own foreign policy objectives,” spokesperson Vedant Patel stated during a news briefing.
Foreign policy expert Mr. Muhammad Faisal suggested that the US threats of sanctions are intended to deter Pakistan and “raise the cost of conducting business with Iran.”
“Any expansion of formal trade and banking interactions between the two countries will be gradual, as Pakistani banks are hesitant to engage in direct transactions with Iranian banks,” he added.
Raisi, the first Iranian president to visit Pakistan in eight years, wrapped up his three-day trip on Wednesday, April 24. During the visit, the neighboring countries announced plans to boost bilateral trade to $10 billion annually over the next five years, up from the current $2 billion.
Pakistan’s foreign office announced that the two countries have also agreed to collaborate in the energy sector, including trading electricity, constructing power transmission lines, and progressing the Iran-Pakistan gas pipeline project.
The gas pipeline initiative has been stagnant for over a decade due to political instability and international sanctions.
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