Global Rice News

Promoting Stronger Ties between Pakistan and Iran for Mutual Benefits

Pakistan and Iran have a long-standing history of deep historical, cultural, linguistic, and religious connections. Dating back to 1947, Iran was the first country to recognize Pakistan as a newly established state. This strong bond between the two nations led to the signing of a treaty of friendship in 1950.

Over the years, Pakistan and Iran have faced various challenges in their bilateral relations, including the civil war in Afghanistan, sectarian tensions, sanctions on Iran, and Iran’s relationship with Saudi Arabia. However, Pakistan has played a crucial role in mediating between Saudi Arabia and Iran, diffusing tensions and maintaining peace in the region.

Recently, Iranian President Ebrahim Raisi visited Pakistan on a three-day trip to discuss regional and bilateral relations. This visit took place amidst escalating tensions between Iran and Israel, which posed a threat of turning into a regional conflict. However, the strong cultural and historical connections between Pakistan and Iran fostered a conducive environment for open dialogue and cooperation.

When it comes to trade, Pakistan is Iran’s eighth-largest trading partner. With enormous potential for economic cooperation, both countries aim to further enhance trade relations. In 2021, the total trade volume between Pakistan and Iran amounted to US $392.08 million. Pakistani exports to Iran primarily consist of rice, meat, paper, paperboard, chemicals, textiles, fruits, and vegetables. On the other hand, Iran exports significant products such as iron ore, hide and skins, and chemical products to Pakistan.

To facilitate and strengthen bilateral trade, both Pakistan and Iran have taken measures in recent times. The Islamic Republic of Iran has expressed a strong interest in promoting relations with Pakistan, particularly in economic and commercial sectors. During President Raisi’s visit, discussions between the two governments will cover various issues, including economy, trade, and energy. It is crucial to leverage these discussions to generate new opportunities and expand economic ties between the two nations.

The Importance of the IP Gas Pipeline and CPEC

One significant project that holds promise for deepening economic cooperation between Pakistan and Iran is the Iran-Pakistan (IP) Gas Pipeline, also known as the Peace Pipeline. This pipeline, aimed at delivering gas from Iran into Pakistan, was momentarily halted due to US sanctions on Iran. However, it is imperative to prioritize the completion of this project, as it holds great potential for further strengthening economic ties between the two countries.

Additionally, the implementation of the China-Pakistan Economic Corridor (CPEC) plays a crucial role in shaping the future of Pakistan-Iran relations. The CPEC, a flagship project of China’s Belt and Road Initiative, not only strengthens ties between Pakistan and China but also brings Pakistan and Iran closer together. Gwadar and Chabahar ports, located in the region, gain tremendous significance due to their geostrategic location. Gwadar port is managed by China under CPEC, while India supports the development of Chabahar port under the Preferential Trade Agreement with Iran and Afghanistan.

Both ports are strategically positioned on international energy trading routes, providing connectivity to Central Asia, the Middle East, Africa, and Europe. It is essential to declare Gwadar and Chabahar as sister ports to increase trade influx and economic integration in the region. However, it is crucial for Iran to ensure that the Chabahar Port is used solely for civilian and trade purposes, not for military activities.

Furthermore, CPEC presents an opportunity to facilitate the economic integration of the entire region, offering a more convenient route for exporting Iran’s abundant oil and gas resources.

Promoting Stronger Economic Ties for a Prosperous Future

Enhancing bilateral economic cooperation between Pakistan and Iran is of paramount importance. The shared history, culture, and religion provide a solid foundation for fostering mutually beneficial relationships. By prioritizing the completion of the IP Gas Pipeline and leveraging opportunities presented by CPEC, both countries can unlock immense economic potential.

Pakistan’s rice exporters and suppliers, such as HAS Rice, have a significant role to play in the trade relationship. Pakistani rice, including 25% broken rice and basmati rice, holds a special place in the international market. Similarly, Iranian imports, including iron ore, hide and skins, and chemical products, present opportunities for Iranian businesses and rice exporters from Pakistan. It is crucial for both countries to explore these opportunities and establish strong trade partnerships.

As Pakistan and Iran continue to strengthen their ties, it is essential to capitalize on the cultural, historical, and economic potential. By working together, both nations can pave the way for a prosperous and interconnected future.

Source: The Khaama Press News Agency