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Pakistan Reader# 759, 26 April 2024

Iran and Pakistan: Six Takeaways of President Raisi’s Islamabad Visit



Both sides committed to increasing their trade volume to USD ten billion over the course of five years

Dhriti Mukherjee

PR Commentary
 
On 22 April, Iranian President Ebrahim Raisi reached Pakistan for a three-day visit, the first of its kind by any head of state following Pakistan’s 8 February general elections. The Iranian presidential office issued a statement explaining that “various issues including economic and commercial issues, energy and border issues will be discussed.” A day earlier, Pakistan’s Ministry of Foreign Affairs said both “sides will have a wide-ranging agenda to further strengthen Pakistan-Iran ties and enhance cooperation in diverse fields including trade, connectivity, energy, agriculture, and people-to-people contacts.”
 
Raisi’s visit comprised of a high-level meeting with top government officials, and visits to Lahore and Karachi. Punjab’s Chief Minister Maryam Nawaz met with Raisi and stated that the province is “willing to work with Iran on economic projects to eradicate poverty and bring about prosperity.” Separately, the two countries signed eight agreements and MoUs for cooperation in multiple sectors. The following are five major takeaways from the visit.
 
1. Boosting trade and economic relations
The primary focus was placed on ramping up the trade relations between the two, and both sides committed to increasing their trade volume to USD ten billion over the course of five years. In the previous year, the trade volume was worth USD two billion. As per the Trade Development Authority of Pakistan, bilateral trade between the two countries stood at USD 537.3 million in 2019, and Pakistan “failed to tap the potential of the Iranian market.” Acknowledging the importance of a long-term sustainable economic partnership, they agreed to finalize the Free Trade Agreement (FTA) and hold sessions of the Annual Bilateral Political Consultations (BPC) and Joint Business Trade Committee (JBTC). Both sides will also exchange economic and technical experts, and collaborate on border sustenance markets. Raisi expressed Iran’s willingness to share its prowess in industry, science, and technology. Collaborations in the energy sector, including trade in electricity, power transmission lines, and the Iran- Pakistan Gas Pipeline Project, were also discussed. To develop connectivity, they agreed to expand the links between the ports of Gwadar and Chahbahar.
 
2. Shared sentiments on the Gaza war
The ongoing war in Gaza was discussed, and both countries explicitly expressed shared sentiments towards the conflict and the resulting consequences. Expressing “strong and unequivocal condemnation” of Israel’s “atrocities against the Palestinian people,” they called for an immediate ceasefire in Gaza, with “accountability of the crimes being committed” by Israel. During talks between Raisi and Pakistani President Asif Ali Zardari, the latter said he was concerned about the humanitarian situation in Gaza, and emphasized that Pakistan would remain consistent in its support for Palestine. Zardari appreciated Iran’s principled stance, and Raisi in turn appreciated Pakistan’s continued support.
 
Discussions on the war were given additional emphasis due to the recent strikes between Iran and Israel. Pakistan had urged all parties in the Middle East to “exercise utmost restraint and move towards de-escalation.” Raisi praised “the Pakistani people and government for the stance taken with us (Iran) in a strong manner against Zionist forces.” Both parties “strongly condemned the attack” on Iran’s embassy for being an “irresponsible act of the Israeli regime forces” which resulted in a “major escalation in an already volatile region.” Describing the attack as a “violation of international law and the UN Charter,” the leaders called on the UN Security Council (UNSC) to “prevent Israeli regime from its adventurism in the region and its illegal acts attacking its neighbours and targeting foreign diplomatic facilities.”
 
3. Coping with American sanctions
The war in Gaza was not the only context which caused Raisi’s visit to be a matter of both regional and international significance. On 23 April, US State Department’s Deputy Spokesperson Vedant Patel stated: “Let me say broadly we advise anyone considering business deals with Iran to be aware of the potential risk of sanctions.” He added that the “government of Pakistan can speak to their own foreign policy pursuits.” This statement was made with the potential aim of dissuading Pakistan from conducting business with Iran, specifically with regard to the gas pipeline. Though this statement may be in light of Iran’s drone strikes on Israel, the US has historically been known to make efforts to restrict Iran’s income from oil and petroleum. Pakistan has said that it will try to get a waiver from the US, and the caretaker government in February gave the go-ahead for the construction of the pipeline, but the fragile state of the economy means Pakistan cannot take the threat of sanctions lightly.
 
4. The rhetoric of brotherly relations
Raisi and Pakistani leaders acknowledged the strength of the ties shared by both countries, with Raisi saying that the countries remain “inseparable” due to the “historical and cultural relationship” which spans “over centuries” and has resulted in the people of both countries wanting to “work together for peace and security and development and prosperity in the region.” He asserted that “no force” could affect the historical and “brotherly” relations, strengthened by “common faith and religions which are inter-connected.” During his visit to Lahore, Raisi noted a “special connection” with Pakistani people, which is why during his visit, he pointed out the need for more “people-to-people contacts.”
 
Similarly, Sharif underscored the importance of keeping the “relationship strong despite challenges” faced by both countries. Sharif and Raisi both decided to promote bilateral ties at “political, economic, trade [and] cultural” levels. The visit was described by Sharif as an opportunity to turn the friendship into a “sea of development and prosperity.” Zardari took to X to say that the two countries are “bound by common religion, history and culture,” and would use “dialogue and cooperation to reinforce existing ties.”
 
5. Concerns on terrorism
Both sides recognized that terrorism “posed a common threat to regional peace and stability and presented a major impediment to the development of the region,” and decided to “adopt a collaborative” approach to dealing with the problem. Pakistan’s Minister for Interior Mohsin Naqvi, and his Iranian counterpart Dr Ahmad Vahidi, noted terrorism as a common problem and signed a security agreement, while also deciding to increase the cooperation in border management through the prevention of smuggling and drug trafficking. They additionally agreed to release each other’s prisoners and take steps for their extradition under the Treaty for the Extradition of Criminals and the Accused between Iran And Pakistan approved by both countries in 1960, and the Agreement on the Transfer of Convicts between the two countries approved in 2016.
 
The visit was also important to mend ties between the two countries after a series of tit-for-tat missile strikes earlier in January this year, wherein Iran launched strikes against an anti-Iran group in Pakistan. In response, Pakistan raided the “militant targets” in the Sistan-Balochistan province. Previously, both countries have accused each other of sheltering militants on their territory. The attacks in January led to heightened tensions and a fray in relations, and this meeting was important in reaffirming the significance of bilateral ties.
 
6. Emphasis on stabilizing Afghanistan
Both countries also highlighted how the existence of terrorist organizations in Afghanistan threatens regional and global security. They reaffirmed their commitment to “the development of Afghanistan as a peaceful, united, sovereign and independent state” which is free from the threats of “terrorism and drug trafficking.” All strata of Afghans would be included in decision-making to help strengthen the country’s stability while being mindful of its sovereignty. The issue of Kashmir was also touched upon, and both countries agreed to use “dialogue and peaceful means based on the will of the people of that region and in accordance with international law” to resolve the dispute.
 
References
Iran President Raisi departs after three-day visit,” The Express Tribune, 24 April 2024;
Pakistan, Iran renews IP gas pipeline cooperation,” The Express Tribune, 24 April 2024;
Imran Ayub & Zulqernain Tahir, “Ready to share tech prowess with Pakistan, says Iran President Raisi,” Dawn, 24 April 2024;
Abdullah Momand, “Iran, Pakistan agree to ‘expeditiously finalise’ free trade agreement: joint statement,” Dawn, 24 April 2024;
Raisi hails ‘inseparable’ bonds between Iran, Pakistan,” The Express Tribune, 23 April 2024;
Abdullah Momand, “Pak-Iran trade volume ‘unacceptable’, to be increased to $10bn: Raisi,” Dawn, 22 April 2024

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