Economy, Business And Markets

Ties With Pakistan Set to Expand

Ties With Pakistan Set to ExpandTies With Pakistan Set to Expand

Iran and Pakistan have always enjoyed robust political and economic ties, and considering Iran’s landmark nuclear deal with the P5+1, which will see the lifting of western sanctions, and the recent talks between the two countries’ political and economical officials, this relationship is set to rise to a new level.

The new era of Iran-Pakistan ties was marked by Pakistan’s President Nawaz Sharif’s visit to Tehran on May 11 to discuss bilateral trade and business facilitation, ISNA reported.

On August 14, Iran’s Minister of Foreign Affairs Mohammad Javad Zarif visited Islamabad to explore avenues for greater economic and security cooperation in the region. Zarif discussed the completion of Iran-Pakistan gas pipeline, also known as the Peace Pipeline—a $1.5 billion deal which was in limbo since 2013 as a result of western sanctions on Iran—and the establishment of an electricity transmission line. Both projects are aimed at alleviating Pakistan’s crippling shortages in energy.

Furthermore, the head of Pakistan’s Customs Administration, Saeed Khan Jadoon, accompanied by a trade delegation visited Zahedan, the capital of Sistan-Baluchestan Province on August 19, and announced that Pakistan seeks to increase annual trade with Iran from last year’s $1 billion to $5 billion.

Jahanbakhsh Sanjabi Shirazi, an economic expert, pointed to Iran-Pakistan trade potential, especially following the lifting of sanctions.

“The Pakistanis can greatly benefit by gaining access to Chabahar Port and Iran can also use Pakistan’s ports for expanding its products to new markets,” he said.

Shirazi added that Iran is able to meet Pakistan’s demand in energy and other sectors through exports.