Pakistan, Iran agree on energy cooperation including IP gas pipeline despite US warning

Pakistan and Iran have reached an agreement to swiftly finalize their Free Trade Agreement (FTA) and aim to elevate their bilateral trade to USD 10 billion within the next five years through collaborative economic endeavors despite US warnings.

During delegation-level discussions between Prime Minister Shehbaz Sharif and Iran’s President Dr. Seyed Ebrahim Raisi, who undertook an official visit to Pakistan from April 22-24, both nations pledged to enhance cooperation in various sectors, including the establishment of joint border markets, economic free zones, and new border openings.

Emphasizing the transformation of their shared border into a zone of prosperity, the two countries reiterated their commitment to energy cooperation, encompassing areas such as electricity trade, power transmission lines, and the Iran-Pakistan Gas Pipeline Project.

A joint statement issued by the Foreign Office highlighted the mutual desire for a long-term economic partnership and a collaborative regional economic model, particularly focusing on the socio-economic development of Iran’s Sistan-Balochistan and Pakistan’s Balochistan provinces.

In addition to reviewing their bilateral relations, Pakistan and Iran engaged in dialogue on regional and global issues of mutual interest, culminating in the signing of several agreements.

Both nations expressed dedication to strengthening fraternal ties through academic, cultural, and tourism initiatives, as well as enhancing security cooperation to combat various threats including terrorism, narcotics smuggling, and human trafficking.

To expedite the finalization of the FTA, both sides agreed to convene sessions of Annual Bilateral Political Consultations (BPC), the Joint Business Trade Committee (JBTC), and the 22nd round of negotiations for the Joint Economic Commission (JEC) promptly. They also pledged to facilitate the exchange of economic and technical experts, as well as delegations from chambers of commerce, to bolster economic cooperation.

As members of the Belt and Road Initiative (BRI) and the Economic Cooperation Organization (ECO), Pakistan and Iran reiterated their commitment to enhancing cooperation in connectivity, infrastructure development, and energy sectors.

They condemned terrorism in all forms and pledged to confront this menace collaboratively, while also stressing the peaceful settlement of disputes through dialogue and diplomacy.

Additionally, both nations reaffirmed their commitment to the development of Afghanistan and expressed readiness to enhance cooperation on counter-terrorism and security to address shared challenges effectively.