Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs

Short Url
Updated 22 April 2024
Follow

Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs

  • The signed agreements were related to the fields of trade, science and technology, agriculture, health, culture, and judicial matters
  • Ebrahim Raisi met Pakistan PM, president and army chief amid efforts by both neighbors to mend ties after this year’s tit-for-tat strikes

ISLAMABAD: Iranian President Ebrahim Raisi said on Monday Islamabad and Tehran had committed to strengthening bilateral relations across political, economic, trade, and cultural domains through the signing of eight accords and memorandums of agreement.

Raisi arrived in Islamabad on Monday on a three-day visit as the two Muslim neighbors seek to mend ties after unprecedented tit-for-tat military strikes this year. He is accompanied by his spouse and a high-level delegation of cabinet members and businesspersons.

The Iranian president was presented with a guard of honor by a Pakistan army contingent upon his arrival at the Prime Minister’s House. He subsequently held meetings with Foreign Minister Ishaq Dar and Prime Minister Shehbaz Sharif.

The MoUs and agreements cover different fields including trade, science technology, agriculture, health, culture, and judicial matters. They include an MoU on the establishment of the Rimdan-Gabd Joint Free/Special Zone; on cooperation between the Ministry of Cooperative Labour and Social Welfare of Iran and the Ministry of Overseas Pakistani and Human Resources Development of Pakistan; on judicial assistance and legal cooperation at the ministry levels; on cooperation for animal hygiene and health; on mutual recognition in the field of quarantine and phytosanitary; and on the promotion of culture and films.

The signing ceremony also marked the ratification of a security cooperation agreement between the governments of two countries.

“Today in our meeting with [Pakistani] prime minister, and other members of the respective cabinet, we decided to promote the bilateral relations between the two countries at political, economic, trade, culture, including others, at all levels as far as possible,” Raisi said at a joint press stakeout with Pakistani premier Sharif.

The Iranian President said both countries were committed to combating terrorism, organized crime, narcotics, and various forms of insecurity that threatened not only the neighbors but the wider region.

“There are a number of common positions and stance between our two countries when it comes, for instance, to fighting against terrorism,” he said, adding that Iran and Pakistan shared a lengthy common border, which presented an opportunity to create and bring about welfare for the people residing in border areas and regions.

“The economic and trade volume between Iran and Pakistan is not acceptable at all and we have decided at the first step to increase the trade volume between our two countries to $10 billion,” Raisi added.

Speaking at the press conference, Sharif said both countries collectively needed to work to strengthen bilateral relations, transforming their shared border into a “beacon of development and prosperity.”

“Today presents an opportunity to forge our friendship into a catalyst for progress and prosperity and the decisions made today regarding economic progress and connectivity will yield visible results,” the PM said.

He also commended the “resolute stance” taken by the Iranian nation against Israeli actions in Gaza, where 35,000 people have been killed in Israeli air and ground offensives since Oct. 7. Sharif called on Iran and Pakistan to unite at the OIC and other international forums alongside fellow Islamic nations to push for a complete ceasefire.

Later, the Iranian president met with his Pakistani counterpart, Asif Ali Zardari, at the Presidency in Islamabad, where the two leaders expressed deep commitment to the longstanding Pakistan-Iran relations. 

“They emphasized the need for further deepening and broadening of bilateral relations in diverse fields and for enhancing high-level dialogue and mutually beneficial cooperation,” the Pakistan presidency said in a statement.

In a meeting with Pakistan Army Chief General Asim Munir, both sides concurred on the necessity to bolster bilateral cooperation while jointly striving for regional stability and economic prosperity, according to the Pakistani military. The discussions primarily focused on matters of mutual interest, notably regional peace, stability, and border security.

“COAS (chief of army staff) described the Pak-Iran border as ‘the border of peace and friendship,’ emphasizing the need for improved coordination along the border to prevent terrorists from jeopardizing the longstanding brotherly relations between the two neighboring countries,” the Inter-Services Public Relations (ISPR), the military’s media wing, said in a statement.

“President Ebrahim Raisi emphasized that by fostering cooperation between the two Armed Forces, Pakistan and Iran can attain peace and stability for both nations and the region.”

Raisi also met Yusuf Raza Gillani, chairman of the Senate of Pakistan, and National Assembly Speaker Ayaz Sadiq.

“OFTEN AT ODDS”

During his visit from April 22-24, the Iranian head of state is also scheduled to meet the Pakistani president, Senate chairman and National Assembly speaker. He will also visit the cities of Karachi and Lahore to meet the country’s provincial leadership.

Raisi’s visit is the first by any head of state to Pakistan after the South Asian nation’s contentious elections of February 2024 and the formation of a new government headed by Sharif. The visit also comes as tensions are high in the Middle East after Iran launched airstrikes on Israel a week ago and Israel retaliated with its own attack on Friday.

Pakistan and Iran have had a history of rocky relations despite a number of commercial pacts, with Islamabad being historically closer to Saudi Arabia and the United States.

Their highest profile agreement is a stalled gas supply deal signed in 2010 to build a pipeline from Iran’s South Fars gas field to Pakistan’s southern provinces of Balochistan and Sindh.

Pakistan and Iran are also often at odds over instability on their shared porous border, with both countries routinely trading blame for not rooting out militancy.

Tensions surged in January when Pakistan and Iran exchanged airstrikes, both claiming to target alleged militant hideouts in each other’s countries. Both sides have since then undertaken peace overtures and restored bilateral ties.

Former diplomat Naghmana Hashmi said the Iranian President’s visit with a large delegation indicated that both countries had put aside “all sources of irritation,” particularly the recent border skirmishes.

“He is also visiting the commercial centers like Lahore and Karachi, which absolutely is a very clear signal that we want to take the economic relationship that the two countries have, to greater heights, and to increase the flow of trade, to encourage the barter trade and the border markets that we have recently established,” she told Arab News.

Hashmi added that both countries were important forces for peace and security in the region.

“At the time when Iran’s tension with the Israel is at its peak, for the president of Iran to come to Pakistan shows his confidence, both as a leader and as a nation, on us being a good neighbor and they consider Pakistan as their great friend,” she added.

Former Pakistani ambassador to Iran, Riffat Masood, said Raisi’s visit was important in the backdrop of recent hostilities between Israel and Iran.

“And, of course, when the leadership of the two countries meet, they will definitely discuss the way forward in trying to bring an end to or at least reduce the hostilities,” she told Arab News.

She said Raisi’s visit would also further enhance security and economic cooperation between Pakistan and Iran.

“The recent border issues are not expected to have a significant impact,” Masood said, “as both countries swiftly addressed them before any negative consequences could affect bilateral relations.”


Under new World Bank threshold, over 44% Pakistanis now live below poverty line

Updated 5 sec ago
Follow

Under new World Bank threshold, over 44% Pakistanis now live below poverty line

  • Over 107 million Pakistanis live below poverty line, earning less than Rs1,200 a day
  • Over 39 million included in extreme poverty category, as per new poverty threshold

ISLAMABAD: Around 44.7% of Pakistan’s population is now considered to be living below the poverty line, according to the World Bank’s newly updated global poverty threshold set at $4.20 per person per day and released this week. 

Christina Wieser, senior economist at the World Bank and Tobias Haque, lead country economist for World Bank Pakistan, told media on Thursday the Bank was updating its global poverty lines to reflect changes in the cost of living and consumption habits of people around the world based on newly available data.

As price levels and the cost of basic needs across the world and within income groups evolve, global poverty lines are periodically updated to allow for global comparisons, Wieser said.

The new poverty lines are $3 per person per day for low-income countries (LIC), $4.20 for lower-middle-income countries (LMIC) and $8.30 for upper-middle-income countries (UMIC.)

Pakistan, with a population of over 240 million, is considered a lower-middle-income nation. 

“The revisions help position Pakistan’s poverty levels in a global context and underscore the importance of continued efforts to reduce vulnerability and improve resilience,” World Bank Country Director for Pakistan Najy Benhassine told media. 

“The new figures reflect updated international thresholds and improved data from other countries, not a deterioration in living standards.”

As a lower-middle-income country, Pakistan’s new poverty statistics reveal that the extreme poverty line, now at $3 per person per day, applies to 16.5% of its population, a substantial increase from 4.9% under the previous $2.15 benchmark. 

The upper-middle-income poverty line, established at $8.30 per person per day, applies to 88.4% of the country’s population.

As per the new poverty threshold, more than 107.95 million people in Pakistan are living below the poverty line, earning less than Rs1,200 a day, while more than 39.8 million people are included in the extreme poverty category.

The updated figures are part of the World Bank’s Global Poverty June Update 2025, an initiative aimed at enhancing the precision and relevance of global poverty assessments.


Pakistani PM to meet Saudi Crown Prince today to bolster bilateral ties, discuss regional security

Updated 32 min 1 sec ago
Follow

Pakistani PM to meet Saudi Crown Prince today to bolster bilateral ties, discuss regional security

  • During his stay on June 5 and 6, Sharif will celebrate Eid Al-Adha, hold bilateral meeting with Crown Prince Mohammed bin Salman
  • Discussions are expected to focus on enhancing cooperation in trade, investment and regional security, welfare of Muslim Ummah

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif is on a two-day visit to Saudi Arabia this week where he will meet Crown Prince Mohammed bin Salman today, Friday, and discuss trade and investment as well as regional security matters. 

The Pakistani prime minister will celebrate Eid Al-Adha in the Kingdom and hold a bilateral meeting with the Saudi Crown Prince that is expected to focus on enhancing cooperation in trade, investment and regional security.

Sharif reached Jeddah on Thursday evening and departed for Makkah to perform Umrah, the Prime Minister’s Office (PMO) said.

“The two leaders will discuss ways to further strengthen bilateral cooperation in various fields, including trade and investment, welfare of the Muslim Ummah, and regional peace and security,” PMO said about Sharif’s meeting with the Saudi Crown Prince later today, Friday. 

Sharif is also expected to express gratitude to the Saudi leadership for their role in de-escalating recent tensions between Pakistan and India. 

Last month, following the worst military confrontation between India and Pakistan in decades, Saudi Arabia, along with other Gulf nations, played a key role in mediating between the two nuclear-armed neighbors, helping to avert a potential war. 

The visit also comes amid deepening economic ties between Pakistan and Saudi Arabia. In recent months, the two countries have signed multiple agreements aimed at boosting bilateral trade and investment. Notably, Saudi Arabia has committed to a $5 billion investment package to support Pakistan’s economy, which has been grappling with a balance of payments crisis.

Last year, Saudi and Pakistani businessmen signed 34 memorandums of understanding worth $2.8 billion, covering sectors such as industry, technology, and agriculture. Additionally, Saudi Arabia’s Manara Minerals is in talks to acquire a 10-20 percent stake in Pakistan’s $9 billion Reko Diq copper and gold mining project, one of the largest of its kind globally.

Defense cooperation is also a key component of the bilateral relationship. The two nations have a history of military collaboration, with Saudi Arabia providing support to Pakistan during times of regional tension and Pakistan training Saudi forces. 

Pakistan has a 2.7 million-strong diaspora in Saudi Arabia, which accounts for the highest remittance inflow, a crucial lifeline for the country’s economy.


Pakistan says India’s use of nuclear-capable missiles boosts risk in future conflict

Updated 46 min 27 sec ago
Follow

Pakistan says India’s use of nuclear-capable missiles boosts risk in future conflict

  • Bilawal Bhutto Zardari says India used supersonic missile with nuclear capabilities during latest confrontation 
  • India has not officially declared its BrahMos missile to be nuclear capable, has stated no-first-use nuclear policy

ISLAMABAD: The head of a delegation visiting Washington DC to present Islamabad’s position following a recent military standoff with New Delhi said on Thursday India’s use of a nuclear-capable missile during the conflict had made the situation more precarious.

India and Pakistan have dispatched delegations to world capitals to defend their positions following last month’s four-day conflict between the nuclear-armed neighbors. Bilawal Bhutto Zardari, a former foreign minister, is leading a Pakistani team of lawmakers and former diplomats to the US and will go onwards to London and Brussels. A separate Indian team led by Indian opposition lawmaker Shashi Tharoor is also in the US for official meetings.

The latest escalation between May 7-10 saw the two countries’ militaries trade missile, drones and artillery fire before a ceasefire was brokered by the US and other allies.

 “Our concern for next time, heaven forbid, for next time round is that the threshold is low for a military conflict,” Bhutto Zardari said in an interview with Bloomberg News in Washington.

He said India’s use during the conflict of a supersonic missile with nuclear capabilities presented a new danger in future clashes. 

“Now we then have about 30 seconds time to decide, off a grainy little image, this nuclear-capable missile — is it armed with a nuclear weapon? And how do we respond?”

In any future conflict, Bhutto Zardari added, both countries were likely to climb the “escalation ladder” too quickly for President Donald Trump or other leaders to intervene.

India has not officially declared its BrahMos missile to be nuclear capable and has a stated no-first-use nuclear policy. On Saturday, a top Indian military official said the conflict with Pakistan in May never came close to the point of nuclear war.

The latest conflict was sparked by an April attack by gunmen that killed 26 civilians — mostly Indian tourists — in Indian-administered Kashmir. India accused Pakistan of being behind the attack, which Islamabad denies.

After the conflict concluded with a ceasefire, which Trump said was brokered by the US, Indian Prime Minister Narendra Modi said India wouldn’t hesitate to use force against “terror camps” in Pakistan again, calling the response a “new normal” in relations. 

India has denied the May 10 ceasefire was the result of US intervention.

“The new sort of normal, or we call it an abnormal, that the Modi government is trying to impose on the region is that if there’s a terrorist attack anywhere in India, mainland India and Indian-occupied Kashmir, you don’t have to provide a shred of evidence.” Bhutto Zardari said. 

“You just need an accusation, and you launch into full-blown war with Pakistan. Therefore, from our perspective, it’s of the utmost importance that Pakistan and India engage in a comprehensive dialogue.”

India insists it attacked militant hideouts inside Pakistan during the latest conflict, marking the deepest breach into Pakistani territory since their 1971 war. Pakistan retaliated and shot down six Indian warplanes, using Chinese-made J-10C fighters to take down three French-made Rafales flown by India, said Bhutto Zardari.

India’s military has confirmed that it lost an unspecified number of fighter jets but said it was “absolutely incorrect” that Pakistan shot down six of its warplanes.

Pakistan has welcomed the US’s involvement in the dispute and called for an international investigation into its cause. India has historically rejected any third-party mediation with Pakistan.

“India will deal with Pakistan purely bilaterally,” India’s External Affairs Minister Subrahmanyam Jaishankar told his German counterpart on May 23. “There should be no confusion in any quarter in that regard.”


Pakistan’s Sindh, Punjab provinces announce prison sentence remissions ahead of Eid

Updated 06 June 2025
Follow

Pakistan’s Sindh, Punjab provinces announce prison sentence remissions ahead of Eid

  • Punjab grants 90-day sentence remission to 450 prisoners ahead of Eid Al-Adha
  • Sindh chief minister approves special remission of 120 days for convicted prisoners

KARACHI: The provincial governments in Pakistan’s Sindh and Punjab provinces have announced remission in sentences for prisoners as a special concession on account of the upcoming Eid Al-Adha festival, official notifications released this week said. 

Pakistani leaders traditionally announce sentence remissions for prisoners on religious festivals and other special occasions like the two Eid festivals and Independence Day. The remissions are intended as goodwill gestures to promote rehabilitation and allow selected inmates to reunite with their families during important national and religious holidays.

“Sindh Chief Minister Syed Murad Ali Shah, on the occasion of Eid-ul-Azha-1446 (2025), has approved a special remission of 120 days for convicted prisoners confined in various prisons and correctional facilities across Sindh Province,” the CM’s office said in a statement. 

The special remission applies to all convicted prisoners “except for condemned prisoners and those convicted of serious offenses including murder, espionage, subversion, anti-state and terrorist activities, rape, kidnapping, robbery, dacoity, offenses, and financial embezzlement causing loss to the national exchequer.”

In Punjab, a special 90-day sentence remission was announced for 450 inmates.

The statement said 270 of the 450 prisoners would be released from Punjab’s jails and celebrate Eid with their families. 

However, prisoners convicted of militancy, sectarianism, espionage, treason, anti-state activities, murder, rape, drug trafficking, robbery, kidnapping, financial embezzlement or causing loss to the national treasury, as well as those punished for violating jail rules within the past year, would not be eligible for the sentence remission.

Eid Al-Adha will be celebrated in Pakistan on Saturday, June 7.


School’s out: Climate change keeps Pakistan students home

Updated 06 June 2025
Follow

School’s out: Climate change keeps Pakistan students home

  • Pakistan’s children are losing weeks of education each year to school closures caused by extreme weather
  • Searing heat, toxic smog, unusual cold snaps have all caused closures meant to reduce children’s health risks

LAHORE: Pakistan’s children are losing weeks of education each year to school closures caused by climate change-linked extreme weather, prompting calls for a radical rethink of learning schedules.

Searing heat, toxic smog and unusual cold snaps have all caused closures that are meant to spare children the health risks of learning in classrooms that are often overcrowded and lack basic cooling, heating or ventilation systems.

In May, a nationwide heatwave saw temperatures up to seven degrees Celsius above normal, hitting 45C (113 degrees Fahrenheit) in Punjab and prompting several provinces to cut school hours or start summer holidays early.

“The class becomes so hot that it feels like we are sitting in a brick kiln,” said 17-year-old Hafiz Ehtesham outside an inner city Lahore school.

“I don’t even want to come to school.”

Pakistan is among the countries most vulnerable to climate change, with limited resources for adaptation, and extreme weather is compounding an existing education crisis caused mostly by access and poverty.

“Soon we will have major cognitive challenges because students are being impacted by extreme heat and extreme smog over long periods of time,” said Lahore-based education activist Baela Raza Jamil.

“The poorest are most vulnerable. But climate change is indeed a great leveller and the urban middle class is also affected.”

Pakistan’s summers historically began in June, when temperatures hit the high 40s. But in the last five years, May has been similarly hot, according to the Meteorological Department.

“During a power outage, I was sweating so much that the drops were falling off my forehead onto my desk,” 15-year-old Jannat, a student in Lahore, told AFP.

“A girl in my class had a nosebleed from the heat.”

Around a third of Pakistani school-age children — over 26 million — are out of school, according to government figures, one of the highest numbers in the world.

And 65 percent of children are unable to read age-appropriate material by age 10.

School closures affect almost every part of Pakistan, including the country’s most populous province Punjab, which has the highest rates of school attendance.

Classes closed for two weeks in November over air pollution, and another week in May because of heat. In the previous academic year, three weeks were lost in January to a cold snap and two weeks in May due to heat.

Political unrest and cricket matches that closed roads meant more lost days.

In Balochistan, Pakistan’s poorest province, May heatwaves have prompted early summer vacations for three years running, while in northwestern Khyber Pakhtunkhwa province, school hours are regularly slashed.

For authorities, the choice is often between sending children to school in potentially dangerous conditions or watching them fall behind.

In southern Sindh province, authorities have resisted heat-related closures despite growing demands from parents.

“It’s hard for parents to send their children to school in this kind of weather,” private school principal Sadiq Hussain told AFP in Karachi, adding that attendance drops by 25 percent in May.

“Their physical and mental health is being affected,” added Dost Mohammad Danish, general secretary of All Sindh Private Schools and Colleges Association.

“Don’t expect better scientists from Pakistan in the coming years.”

Schools in Pakistan are overseen by provincial authorities, whose closure notices apply to all schools in a region, even when they are hundreds of kilometers (miles) apart and may be experiencing different conditions, or have different resources to cope.

Teachers, parents and education experts want a rethink of school hours, exam timetables and vacations, with schools able to offer Saturday classes or split the school day to avoid the midday heat.

Izza Farrakh, a senior education specialist at the World Bank, said climate change-related impacts are affecting attendance and learning outcomes.

“Schools need to have flexibility in determining their academic calendar. It shouldn’t be centralized,” she said, adding that end-of-year exams usually taken in May could be replaced by regular assessments throughout the year.

Adapting school buildings is also crucial.

International development agencies have already equipped thousands of schools with solar panels, but many more of the country’s 250,000 schools need help.

Hundreds of climate-resilient schools funded by World Bank loans are being built in Sindh. They are elevated to withstand monsoon flooding, and fitted with solar panels for power and rooftop insulation to combat heat and cold.

But in Pakistan’s most impoverished villages, where education is a route out of generational poverty, parents still face tough choices.

In rural Sukkur, the local school was among 27,000 damaged or destroyed by unprecedented 2022 floods. Children learn outside their half-collapsed school building, unprotected from the elements.

“Our children are worried, and we are deeply concerned,” said parent Ali Gohar Gandhu, a daily wage laborer. “Everyone is suffering.”