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Pakistan, Iran set $10b target for bilateral trade

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ISLAMABAD: Three months after the two countries were on the verge of a major conflict, Pakistan and Iran on Monday decided to strengthen economic and security cooperation by setting a $10 billion bilateral trade target and jointly fighting the menace of terrorism.

The understanding between the two neighbours was reached after formal talks between Iranian President Ebrahim Raisi and Prime Minister Shehbaz Sharif.

Raisi travelled to Islamabad as part of efforts to mend ties with Pakistan after Iran launched missile strikes inside the country in January. Pakistan retaliated with similar strikes two days later, triggering an unprecedented crisis between the two Muslim countries.

However, the situation was quickly brought under control as Iran dispatched its top diplomat to Islamabad. Since then, the two countries have been making efforts to bury that bad patch in their bilateral ties.

The fact that the Iranian president travelled to Islamabad despite simmering tensions with Israel suggests the importance Tehran attaches to its ties with Pakistan, according to officials.

The warm reception being given to President Raisi by Pakistan also indicates keenness on the part of Islamabad to get over with the January tit-for-tat missile strikes.

Raisi had a busy day in the capital. He held a full range of meetings, including with PM Shehbaz, delegation-level talks, President Asif Ali Zardari, and Chief of Army Staff (COAS) General Asim Munir. The Chairman of the Senate and the Speaker of the National Assembly also called on the visiting president.

During formal talks at the Prime Minister’s House, the two sides discussed a wide range of issues covering bilateral ties as well as regional and international issues.

Following their talks, the two leaders, at a joint news conference, reaffirmed their commitment to expanding wide-ranging bilateral cooperation, particularly in the areas of trade, energy, connectivity, culture, and people-to-people contacts.

Both sides admitted that the current volume of trade between the two neighbours was not acceptable. They agreed to increase bilateral trade to $10 billion from the current volume of around $2 billion.

Against the backdrop of their recent tensions, border security and the issue of terrorism were major talking points.

PM Shehbaz underlined that terrorism was a common threat and both sides needed to fight it collectively. The Iranian president hoped that his visit would prove to be a “turning point” in their bilateral relationship.

Prime Minister Shehbaz Sharif meets Iranian President Ebrahim Raisi. PHOTO: PMO

Prime Minister Shehbaz Sharif meets Iranian President Ebrahim Raisi. PHOTO: PMO

Both leaders expressed deep concern about the situation in Gaza and called for international efforts toward an immediate and unconditional ceasefire, lifting of the siege, and humanitarian relief for the people of Gaza. PM Shehbaz lauded the stance taken by Iran against Israel.

The prime minister also appreciated the Iranian leadership for Iran’s unequivocal and principled support for the Kashmiri people and their legitimate rights.

Foreign Minister Ishaq Dar meets Iranian President Ibrahim Raisi. PHOTO: Radio Pakistan

Foreign Minister Ishaq Dar meets Iranian President Ibrahim Raisi. PHOTO: Radio Pakistan

In remarks, Raisi said that the killings by Israel in Gaza were being committed with the support of the United States and other Western countries. He criticised international organisations, including the United Nations, saying, “They say they support human rights, but they have proved to be inefficient.”

The two leaders also signed eight cooperation agreements, according to the PM’s office.

The two sides also discussed the long-delayed Iran-Pakistan gas pipeline project. The multibillion-dollar gas pipeline was supposed to be completed in December 2014. Pakistan, however, could not initiate work on its side of the border fearing US economic sanctions.

Recently, nevertheless, authorities in Pakistan decided to start work on the project. In the first phase, Pakistan would build a pipeline from Gwadar to the Iranian border.

However, the US voiced its concerns and warned that the Pakistani move could trigger potential economic sanctions.

Officials said that Iran was aware of Pakistan’s compulsions and during the talks discussed possible alternative options to avoid US sanctions. They added that Iran was ready to help Pakistan find ways and means to complete the project.

Raisi is accompanied by his spouse and a high-level delegation. He plans to visit Karachi, the country’s biggest city, and Lahore, where he will meet with the country’s recently elected first female chief minister, Maryam Nawaz Sharif.

The visit comes after Iran’s airstrike into Israel, which was in response to an Israeli strike in Syria that had killed two Iranian generals in a consular building.

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