Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs

Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
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Pakistan Prime Minister Shehbaz Sharif and Iranian President Ebrahim Raisi witness signing of MoUs of cooperation in different fields between the two countries in Islamabad, Pakistan, on April 22, 2023. (Government of Pakistan)
Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
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In this photo released by Prime Minister Office, Iranian President Ebrahim Raisi, left, walks with Pakistan's Prime Minister Shehbaz Sharif during a welcome ceremony in the prime minister house in Islamabad, Pakistan, on April 22, 2024. (AP)
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Updated 22 April 2024
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Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs

Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
  • The signed agreements were related to the fields of trade, science and technology, agriculture, health, culture, and judicial matters
  • Ebrahim Raisi met Pakistan PM, president and army chief amid efforts by both neighbors to mend ties after this year’s tit-for-tat strikes

ISLAMABAD: Iranian President Ebrahim Raisi said on Monday Islamabad and Tehran had committed to strengthening bilateral relations across political, economic, trade, and cultural domains through the signing of eight accords and memorandums of agreement.

Raisi arrived in Islamabad on Monday on a three-day visit as the two Muslim neighbors seek to mend ties after unprecedented tit-for-tat military strikes this year. He is accompanied by his spouse and a high-level delegation of cabinet members and businesspersons.

The Iranian president was presented with a guard of honor by a Pakistan army contingent upon his arrival at the Prime Minister’s House. He subsequently held meetings with Foreign Minister Ishaq Dar and Prime Minister Shehbaz Sharif.

The MoUs and agreements cover different fields including trade, science technology, agriculture, health, culture, and judicial matters. They include an MoU on the establishment of the Rimdan-Gabd Joint Free/Special Zone; on cooperation between the Ministry of Cooperative Labour and Social Welfare of Iran and the Ministry of Overseas Pakistani and Human Resources Development of Pakistan; on judicial assistance and legal cooperation at the ministry levels; on cooperation for animal hygiene and health; on mutual recognition in the field of quarantine and phytosanitary; and on the promotion of culture and films.

The signing ceremony also marked the ratification of a security cooperation agreement between the governments of two countries.

“Today in our meeting with [Pakistani] prime minister, and other members of the respective cabinet, we decided to promote the bilateral relations between the two countries at political, economic, trade, culture, including others, at all levels as far as possible,” Raisi said at a joint press stakeout with Pakistani premier Sharif.

The Iranian President said both countries were committed to combating terrorism, organized crime, narcotics, and various forms of insecurity that threatened not only the neighbors but the wider region.

“There are a number of common positions and stance between our two countries when it comes, for instance, to fighting against terrorism,” he said, adding that Iran and Pakistan shared a lengthy common border, which presented an opportunity to create and bring about welfare for the people residing in border areas and regions.

“The economic and trade volume between Iran and Pakistan is not acceptable at all and we have decided at the first step to increase the trade volume between our two countries to $10 billion,” Raisi added.

Speaking at the press conference, Sharif said both countries collectively needed to work to strengthen bilateral relations, transforming their shared border into a “beacon of development and prosperity.”

“Today presents an opportunity to forge our friendship into a catalyst for progress and prosperity and the decisions made today regarding economic progress and connectivity will yield visible results,” the PM said.

He also commended the “resolute stance” taken by the Iranian nation against Israeli actions in Gaza, where 35,000 people have been killed in Israeli air and ground offensives since Oct. 7. Sharif called on Iran and Pakistan to unite at the OIC and other international forums alongside fellow Islamic nations to push for a complete ceasefire.

Later, the Iranian president met with his Pakistani counterpart, Asif Ali Zardari, at the Presidency in Islamabad, where the two leaders expressed deep commitment to the longstanding Pakistan-Iran relations. 

“They emphasized the need for further deepening and broadening of bilateral relations in diverse fields and for enhancing high-level dialogue and mutually beneficial cooperation,” the Pakistan presidency said in a statement.

In a meeting with Pakistan Army Chief General Asim Munir, both sides concurred on the necessity to bolster bilateral cooperation while jointly striving for regional stability and economic prosperity, according to the Pakistani military. The discussions primarily focused on matters of mutual interest, notably regional peace, stability, and border security.

“COAS (chief of army staff) described the Pak-Iran border as ‘the border of peace and friendship,’ emphasizing the need for improved coordination along the border to prevent terrorists from jeopardizing the longstanding brotherly relations between the two neighboring countries,” the Inter-Services Public Relations (ISPR), the military’s media wing, said in a statement.

“President Ebrahim Raisi emphasized that by fostering cooperation between the two Armed Forces, Pakistan and Iran can attain peace and stability for both nations and the region.”

Raisi also met Yusuf Raza Gillani, chairman of the Senate of Pakistan, and National Assembly Speaker Ayaz Sadiq.

“OFTEN AT ODDS”

During his visit from April 22-24, the Iranian head of state is also scheduled to meet the Pakistani president, Senate chairman and National Assembly speaker. He will also visit the cities of Karachi and Lahore to meet the country’s provincial leadership.

Raisi’s visit is the first by any head of state to Pakistan after the South Asian nation’s contentious elections of February 2024 and the formation of a new government headed by Sharif. The visit also comes as tensions are high in the Middle East after Iran launched airstrikes on Israel a week ago and Israel retaliated with its own attack on Friday.

Pakistan and Iran have had a history of rocky relations despite a number of commercial pacts, with Islamabad being historically closer to Saudi Arabia and the United States.

Their highest profile agreement is a stalled gas supply deal signed in 2010 to build a pipeline from Iran’s South Fars gas field to Pakistan’s southern provinces of Balochistan and Sindh.

Pakistan and Iran are also often at odds over instability on their shared porous border, with both countries routinely trading blame for not rooting out militancy.

Tensions surged in January when Pakistan and Iran exchanged airstrikes, both claiming to target alleged militant hideouts in each other’s countries. Both sides have since then undertaken peace overtures and restored bilateral ties.

Former diplomat Naghmana Hashmi said the Iranian President’s visit with a large delegation indicated that both countries had put aside “all sources of irritation,” particularly the recent border skirmishes.

“He is also visiting the commercial centers like Lahore and Karachi, which absolutely is a very clear signal that we want to take the economic relationship that the two countries have, to greater heights, and to increase the flow of trade, to encourage the barter trade and the border markets that we have recently established,” she told Arab News.

Hashmi added that both countries were important forces for peace and security in the region.

“At the time when Iran’s tension with the Israel is at its peak, for the president of Iran to come to Pakistan shows his confidence, both as a leader and as a nation, on us being a good neighbor and they consider Pakistan as their great friend,” she added.

Former Pakistani ambassador to Iran, Riffat Masood, said Raisi’s visit was important in the backdrop of recent hostilities between Israel and Iran.

“And, of course, when the leadership of the two countries meet, they will definitely discuss the way forward in trying to bring an end to or at least reduce the hostilities,” she told Arab News.

She said Raisi’s visit would also further enhance security and economic cooperation between Pakistan and Iran.

“The recent border issues are not expected to have a significant impact,” Masood said, “as both countries swiftly addressed them before any negative consequences could affect bilateral relations.”


Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks

Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks
Updated 09 February 2025
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Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks

Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks
  • The report will recommend actions for addressing corruption vulnerabilities and strengthening integrity and governance
  • The South Asian country, bolstered by a $7 billion IMF facility granted in September, is navigating an economic recovery

A three-member International Monetary Fund (IMF) mission will visit Pakistan to conduct a Governance and Corruption Diagnostic Assessment under the country's 2024 Extended Fund Facility program, the finance ministry said on Sunday, without specifying dates.
The ministry added that the report will recommend actions for addressing corruption vulnerabilities and strengthening integrity and governance, noting that the findings would help shape structural reforms.
"The focus of the mission will be to examine the severity of corruption vulnerabilities across six core state functions. These include fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and AML-CFT," the ministry said in the statement.
Pakistan’s government welcomed the IMF’s technical support, saying the assessment would aid efforts to promote transparency and institutional capacity.
The South Asian country, currently bolstered by a $7 billion facility from the International Monetary Fund (IMF) granted in September, is navigating an economic recovery.
The IMF is set to review Pakistan's progress by March, with the government and central bank expressing confidence about meeting its targets.
 


Pakistani security forces kill seven militants in restive northwest

Pakistani security forces kill seven militants in restive northwest
Updated 09 February 2025
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Pakistani security forces kill seven militants in restive northwest

Pakistani security forces kill seven militants in restive northwest
  • The militants were killed in intelligence-based operations in Dera Ismail Khan and North Waziristan districts
  • Islamabad blames a surge in militancy on militant groups operating out of Afghanistan, Kabul denies allegation

ISLAMABAD: Security forces have killed seven militants in separate engagements in the country’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Sunday.

Pakistan has seen a surge in militancy in KP since a fragile truce between the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), and the state broke down in November 2022. The militants have stepped up attacks against police and security forces in recent months, with the military reporting deaths of 383 soldiers and 925 militants in various clashes in the country in 2024.

In the latest incident, three militants were killed and two others injured in an intelligence-based operation in KP’s Dera Ismail Khan district, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing. Four suspected militants were killed in a gunfight in the North Waziristan district, which borders Afghanistan, while three others were injured.

“Sanitization operations are being conducted to eliminate any other Kharji [militant] found in the area,” the ISPR said in a statement.

The development came a day after militants attacked a police check-post in KP’s Bannu district, leaving two policemen dead and two others injured, according to a local police official.

No group immediately claimed for Saturday’s attack, but suspicion was likely to fall on the Pakistani Taliban, who have frequently targeted security forces and police convoys and check-posts, besides targeted killings and kidnappings of law enforcers and government officials in the region.

Islamabad has frequently blamed the surge in militancy on Afghanistan, accusing it of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement and insist that Pakistan’s security issues are an internal matter of Islamabad.


Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia

Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia
Updated 09 February 2025
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Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia

Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia
  • Pakistan says Netanyahu’s remarks “deeply offensive,” undermine legitimate rights of Palestinian people
  • Pakistan stands in solidarity with Saudi Arabia, commends its steadfast support for Palestinians, says Deputy PM Dar

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Sunday strongly condemned Israeli PM Benjamin Netanyahu’s statement calling for the establishment of a Palestinian state in Saudi Arabia, describing it as “irresponsible, provocative and thoughtless.”

Saudi Arabia’s Foreign Ministry on Sunday responded sharply to Netanyahu’s remarks, saying that it rejected “such statements that aim to divert attention from the continuous crimes committed by the Israeli occupation against the Palestinian brothers in Gaza.”

“Deputy Prime Minister/Foreign Minister Senator Mohammad Ishaq Dar stated that the Israeli remark is irresponsible, provocative and thoughtless, which is not only deeply offensive but also undermines and disregards the legitimate rights of the Palestinian people to self-determination and an independent State on their own historical and legitimate territory,” Pakistan’s foreign ministry said. 

Dar said Pakistan stands in solidarity with Saudi Arabia and commends its steadfast support for Palestinians and their cause. 

“Any attempt to undermine Saudi Arabia’s unwavering position and misrepresentation of its commitment to the Palestinian cause are deeply regrettable,” he was quoted as saying by the foreign ministry. 

The deputy prime minister said Pakistan supports the right of Palestinians to establish an independent and sovereign state based on the pre-1967 borders, with Al Quds Al Sharif as its capital. 

“Any proposal that seeks to displace or relocate the Palestinian people from their ancestral homeland is unacceptable and constitutes a blatant violation of international law, United Nations resolutions and the principles of justice and fairness,” the statement said. 

Dar said Pakistan reiterates its “unflinching support” for the Palestinian cause and will continue to work closely with Saudi Arabia and other members of the international community to advocate for the rights of the Palestinian people. 

He called for a “just, comprehensive and lasting solution to the Palestinian issue.”

“Pakistan urges the international community to denounce this provocative remark and hold Israel accountable for its continued attempts to undermine the peace process,” the statement said. 

Netanyahu’s remarks come amid an uneasy six-week truce reached between Hamas and Israel last month which ended 15 months of war.

The truce included the gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to northern Gaza.

Netanyahu’s comments follow US President Donald Trump’s suggestion earlier this month that Palestinians residing in Gaza should be resettled in Egypt, Jordan or other countries.

The proposal was rejected by both Egypt and Jordan and countries including Pakistan, prompting condemnation from various international rights groups as well.


Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation

Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation
Updated 09 February 2025
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Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation

Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation
  • Aman Dialogue brings together chiefs of navies, coast guards and defense forces from Feb. 9-10
  • Conference to focus on piracy, narco-trafficking and resource exploitation maritime challenges

ISLAMABAD: Pakistan held the inaugural session of the Aman Dialogue 2025 in Karachi on Sunday to foster international maritime cooperation among several countries around the world, stressing the importance of “unhindered activity” in seas to promote economic cooperation. 

The Aman Dialogue is being held from Feb. 9-10 and brings together chiefs of navies, coast guards and defense forces. It aims to provide them an opportunity to exchange views on global and regional security and adopt innovative solutions. 

This year’s conference is themed: “Secure Seas, Prosperous Future,” and focuses on security challenges in the Indian Ocean. These include strategic competition, piracy, narco-trafficking, non-state actors, resource exploitation, climate change, emerging technologies such as AI and unmanned systems, the blue economy and the need for global collaboration to ensure stability and prosperity.

“The global economic system is almost wholly dependent upon unhindered activity in the maritime domain,” Defense Minister Khawaja Asif said at an event held to mark the opening of the dialogue. 

“The uninterrupted use of seas and oceans remain the strategic interests of all nations,” he added. 

Asif called on countries to synergize their efforts to extract greater economic gains, saying that the maritime domain is at a “critical crossroads.”

“Our oceans carrying over 80 percent of global trade represent not only shipping lanes but the arteries of global prosperity,” the minister said, adding that the Indian Ocean alone holds over 50 percent of global oil and gas reserves. 

The dialogue coincides with the AMAN-25 multinational naval exercise, which kicked off on Friday in Karachi. Pakistan Navy’s fleet commander lauded the participation of 60 nations on Friday, hailing it as a testament to the world community’s desire for peace.

The Pakistan Navy has conducted the AMAN maritime exercise every two years since 2007 under the theme “Together For Peace,” involving ships, aircraft and special operations forces.


Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 

Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 
Updated 09 February 2025
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Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 

Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 
  • Shehbaz Sharif to deliver keynote address, highlight Pakistan’s vision for economic growth and governance reforms at summit
  • Pakistani premier to meet world leaders, UAE leadership and CEOs of major multinational companies at summit, says foreign office 

Islamabad: Pakistan’s Prime Minister Shehbaz Sharif will visit the United Arab Emirates (UAE) from Feb. 10-11 to take part in the World Governments Summit (WGS), the foreign office said on Sunday, adding that the premier will engage in discussions with world leaders about the future of governance and international cooperation. 

According to the WGS’ official website, over 400 ministers and thousands of industry leaders, experts, and policymakers will head to Dubai for the summit which will be held from Feb. 11-13. As per the WGS, the event will also welcome more than 80 international, regional and intergovernmental organizations to join in the discussion on the future of governance, global challenges and their innovative solutions. 

This will be Sharif’s second visit to the UAE since assuming office in March last year, the foreign office said. He will be accompanied by a high-level delegation including Deputy Prime Minister and Foreign Minister Ishaq Dar and other key members of the federal cabinet. 

“During his visit, the Prime Minister will deliver a keynote address at the WGS, highlighting Pakistan’s vision for inclusive economic growth, digital transformation and governance reforms,” the foreign office said. 

“He will also hold bilateral meetings with the UAE leadership as well as engage with Heads of State/Government from participating countries and leading CEOs of major multinational companies.”

The statement said Sharif’s visit underscores Pakistan’s unwavering commitment to further strengthening its ties with the UAE, fostering greater economic collaboration and exploring new avenues of partnership for mutual prosperity.

The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE’s foreign ministry.

Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.

It is also home to more than a million Pakistani expatriates, making it the second-largest Pakistani expatriate community worldwide, as per the foreign office, and a major source of foreign workers’ remittances for Pakistan. 

Pakistan and UAE have stepped up efforts in recent years to strengthen their business and investment relations. In January 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistani caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos for the World Economic Forum’s summit.