Iran and Pakistan have agreed to quickly finalize a Free Trade Agreement (FTA), according to a joint statement issued by both countries.
The statement mentioned that both sides have committed to expedite the process of finalizing the FTA and to schedule the next sessions of annual Bilateral Political Consultations (BPC), Joint Business Trade Committee (JBTC), and the 22nd round of negotiations of the Joint Economic Commission (JEC) in the near future.
During Iranian President Ebrahim Raisi’s recent visit to Pakistan, Islamabad and Tehran agreed to boost bilateral trade to $10 billion. Additionally, they agreed to increase mutual interaction through regular high-level visits and facilitate the exchange of economic and technical experts.
Moreover, the joint statement highlighted the designation of the Reemdan border point as an international border crossing point under the TIR Convention, along with the planned opening of joint border markets.
Both countries reiterated their commitment to cooperation in the energy sector, particularly in trade in electricity, power transmission lines, and the Iran-Pakistan Gas Pipeline Project.
Raisi left Karachi for Iran after completing his three-day visit, where he was seen off by Governor Sindh Kamran Tessori, Chief Minister Murad Ali Shah, and Federal Minister Riaz Hussain Pirzada.
During his visit, Prime Minister Shehbaz Sharif and President Raisi expressed their joint desire to combat terrorism through enhanced efforts and bilateral cooperation.
The visit attracted international attention, especially amidst Tehran’s ongoing tensions with Israel. Despite potential displeasure from the US, Pakistan maintained its stance and informed the US that the visit had been planned well in advance.
In recent weeks, Pakistan has expressed interest in advancing the long-delayed Iran gas pipeline project. However, the US issued a warning against this move, citing potential sanctions.
Pakistan has historically navigated its relationships with Iran and Saudi Arabia carefully. Nonetheless, officials in Islamabad believe that Saudi Arabia’s improved relationship with Iran in recent months may alleviate some concerns.
