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

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Updated 22 April 2024
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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.”


White House calls Pakistan’s Nobel nomination for Trump ‘win’ for American people

Updated 58 min 32 sec ago
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White House calls Pakistan’s Nobel nomination for Trump ‘win’ for American people

  • Islamabad said it would recommend Trump for Peace Prize for helping resolve recent conflict with India
  • Pakistan says US intervention ended the fighting, India says it was due to a bilateral agreement 

ISLAMABAD: White House Press Secretary Karoline Leavitt on Monday called Pakistan’s nomination of US President Donald Trump for the Nobel Peace Prize a “win” for the American people. 

Islamabad said last month it would recommend Trump for the Nobel Peace Prize, an accolade that he has repeatedly said he craves, for his work in helping to resolve the recent conflict between India and Pakistan.

In May, a surprise announcement by Trump of a ceasefire brought an abrupt end to a four-day air war between nuclear-armed foes India and Pakistan. Trump has since repeatedly said that he averted a nuclear war, saved millions of lives and grumbled that he got no credit for it.

Pakistan agrees that US diplomatic intervention ended the fighting but India says it was a bilateral agreement between the two militaries.

On Monday evening, Leavitt wrote on X that “over the past few weeks, President Trump has delivered more wins for the American people than most Presidents do in four years.”

In the list of his victories she included:

“Pakistan nominated President Trump for the Nobel Peace Prize in recognition of his decisive diplomatic intervention to prevent a nuclear war between India and Pakistan.”

 

Pakistan on June 21 said it was nominating Trump as “a genuine peacemaker” for his role in bringing the conflict with India to an end, adding that he had “demonstrated great strategic foresight and stellar statesmanship.”

In a social media post a day earlier, Trump gave a long list of conflicts he said he had resolved, including India and Pakistan and the Abraham accords in his first term between Israel and some Muslim-majority countries. 

He added: “I won’t get a Nobel Peace Prize no matter what I do.”

Pakistan’s move to nominate Trump came in the same week its army chief, Field Marshal Asim Munir, met the US leader for lunch. It was the first time that a Pakistani military leader had been invited to the White House when a civilian government was in place in Islamabad.

On Monday, Israeli Prime Minister Benjamin Netanyahu told Trump he had nominated him for the Nobel Peace Prize, handing Trump a nomination letter during a meeting at the White House.


Pakistan urges world to accept Taliban’s de facto rule to avoid new Afghan conflict

Updated 08 July 2025
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Pakistan urges world to accept Taliban’s de facto rule to avoid new Afghan conflict

  • Pakistan has not officially recognized Taliban government in Afghanistan, which seized Kabul in August 2021
  • Pakistan’s UN ambassador says militant groups from Afghanistan are a threat to Islamabad’s national security

ISLAMABAD: Pakistan’s United Nations Ambassador Asim Iftikhar Ahmad this week called on the international community to acknowledge the de facto Taliban rule in Afghanistan, warning that failure to do so could risk igniting another conflict in the war-torn country. 

Pakistan has not officially recognized the Taliban government in Afghanistan, which seized Kabul in August 2021 after the chaotic withdrawal of US-led coalition forces from the country, but has retained high-level diplomatic engagement with Kabul. Islamabad has also called on the international community to engage with the Taliban government and unfreeze Afghanistan’s financial assets to ward off the country’s humanitarian crisis. 

Ahmad’s statement follows Russia’s move to become the first country to recognize the Taliban last week as it accepted the credentials of a new ambassador of Afghanistan. 

“We should acknowledge that there is one authority that controls the territory of Afghanistan with no credible challenge to it,” Ahmad said on Monday, during a UN General Assembly plenary meeting on Afghanistan. “We must avoid actions that could ignite another conflict in Afghanistan which can affect the entire region.”

Pakistan and Afghanistan have had rocky relations mainly due to a spike in militancy in Pakistan’s western regions that border Afghanistan. Islamabad says anti-Pakistan militants carry out cross-border attacks using safe havens in Afghanistan, a charge Kabul denies. Another source of tension has been Pakistan’s drive to expel Afghans, which first began in Nov. 2023.

Ahmad warned that “terrorism” emanating from Afghanistan continues to be a serious threat to its neighbors, particularly Pakistan. He said Daesh and other militant entities such as the Al-Qaeda, the Tehreek-e-Taliban Pakistan (TTP) and Baloch militant groups continue to operate from “ungoverned spaces” in Afghanistan.

He said the TTP is directly threatening Pakistan’s national security with 6,000 fighters at its disposal, alleging that Islamabad has evidence of the outfit’s collaboration with Baloch militant groups to disrupt infrastructure and economic development projects in Pakistan.

“The international community must speak with a unified voice to hold the de facto authorities to their commitments, including not to allow the use of Afghan soil against any country and to ensure the shared goal of a stable and prosperous Afghanistan free from terrorism, at peace within, and without,” Ahmad said. 

The Pakistani envoy said Islamabad is ready to support regional and international engagement efforts with Afghanistan via clear objectives, reciprocal steps and a realistic roadmap. 

“What could not be realized through force, will not be achieved through isolation, sanctions or financial coercion,” he said. 

The development took place the same day that Pakistan and Afghanistan held the inaugural additional secretary-level talks between the two countries, pursuant to the decisions reached during the visit of Pakistan’s Deputy Prime Minister Ishaq Dar to Kabul in April. 

The two sides discussed deepening trade and transit cooperation, militancy, the deportation of Afghan refugees from the country and the legal travel of the citizens of the two nations in the talks on Monday.


Pakistan, UAE eye enhanced media collaboration to promote mutual understanding

Updated 08 July 2025
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Pakistan, UAE eye enhanced media collaboration to promote mutual understanding

  • Pakistan’s envoy meets UAE Media Council secretary-general Mohammed Saeed Al Shehhi in Dubai
  • Al Shehhi acknowledges Pakistan’s rich cultural heritage, tourism potential, says Pakistani embassy

ISLAMABAD: Pakistan and the UAE agreed to enhance collaboration in the media sector to promote mutual understanding and “positive narratives” between the two nations, the Pakistani embassy in Abu Dhabi said this week. 

Pakistan and the UAE enjoy cordial ties rooted in shared religion and culture. The two nations enjoy cooperation in defense, economic, trade, commerce, tourism and several other sectors of the economy. 

Pakistan’s Ambassador to the UAE Faisal Niaz Tirmizi met Mohammed Saeed Al Shehhi, the UAE Media Council’s secretary-general, in Dubai on Monday. Tirmizi underscored brotherly ties between the two states, highlighting the Pakistani expatriate community’s significant role in the UAE’s development, the Pakistan embassy in Abu Dhabi said. 

“The meeting focused on exploring avenues for collaboration in the media sector, aimed at promoting mutual understanding and positive narratives between the two nations,” the embassy said. 

Al Shehhi reaffirmed the UAE Media Council’s commitment to strengthening cooperation with Pakistan, the embassy said. He acknowledged Islamabad’s rich cultural heritage, natural beauty and tourism potential, particularly in its northern regions, it added. 

The development takes place as a senior Pakistani government delegation is in Dubai to participate in a two-day experience exchange program, aiming to learn from the UAE’s governance and public sector innovation models.

The program, running from July 8–9, includes sessions with various UAE ministries and authorities and focuses on innovative approaches to public service delivery, competitiveness, and institutional reform. 

The UAE is an important ally for Pakistan, given it is the South Asian nation’s third-largest trading partner after China and the United States. It is also considered a critical market due to its geographic proximity and logistical advantages to Pakistan.

The Gulf state is also Pakistan’s second-largest source of foreign remittances, after Saudi Arabia, with over 1.8 million Pakistani expatriates living and working there.


Days of monsoon rains kill 79 as Pakistan braces for more floods

Updated 08 July 2025
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Days of monsoon rains kill 79 as Pakistan braces for more floods

  • Strong westerly wave to cause moderate to heavy rainfall till July 10, disaster management authority says
  • Khyber Pakhtunkhwa reports highest number of deaths, 29, from rain-related incidents since June 26

ISLAMABAD: The death toll from monsoon rains in Pakistan under two weeks has climbed to 79, the National Disaster Management Authority (NDMA) said in its latest report, as the country braces for more heavy downpours and floods till July 10. 

Monsoon rains have battered several parts of Pakistan, especially its eastern Punjab and northwestern Khyber Pakhtunkhwa (KP) provinces, since June 26. As per the NDMA’s latest situation report, KP has reported the highest number of deaths from rain-related incidents, 29, followed by Punjab with 24, Sindh with 15, and Balochistan with 11 deaths in thirteen days of rain. 

Seventy-two people were injured in Punjab, followed by 34 in Sindh, 27 in KP, four in Azad Kashmir and three in Balochistan since June 26, as per the report. The NDMA on Monday forecast heavy rains and floods in several parts of the country. It said a moisture inflow from the Bay of Bengal and Arabian Sea, combined with a strong westerly wave, is expected to result in moderate to heavy monsoon rainfall till July 10. 

“These weather conditions are likely to cause both riverine and flash flooding in various regions of Pakistan,” the authority said on Monday. 

As per the NDMA’s report, 189 houses in total have been damaged across the country while 100 livestock have perished due to rain-related incidents since June 26. KP reported the highest number of houses damaged since June 26, 94, while the largest number of livestock perished were reported from Sindh, 58. 

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change. In 2022, record-breaking monsoon rains and glacier melt caused catastrophic floods that affected 33 million people and killed more than 1,700. The South Asian country has been the victim of irregular weather patterns recently that have ranged from heatwaves to droughts and torrential rains.

Surging temperatures in the country’s mountainous north, especially in Gilgit-Baltistan, have accelerated glacier melt, compounding the risk of sudden floods and landslides in narrow valleys and near vulnerable glacial lakes.

The NDMA advises the public to stay indoors during thunderstorms, avoid unnecessary travel and keep children away from electricity poles and waterlogged areas.


Bangladesh warms to China, Pakistan after revolution as India fumes

Updated 08 July 2025
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Bangladesh warms to China, Pakistan after revolution as India fumes

  • There is deep resentment in Dhaka over fugitive ex-PM Hasina, who escaped uprising in August and flew to New Delhi
  • India has long been wary of China’s growing regional clout as both nations compete for influence in South Asia region

DHAKA, Bangladesh: Protests in Bangladesh that toppled the government last year triggered a diplomatic pivot, with Dhaka warming toward China after neighboring India was angered by the ousting of its old ally Sheikh Hasina.

One year since the protests, that realignment risks intensifying polarization — and fears of external interference — as political parties in Bangladesh jostle for influence ahead of elections next year.

For the caretaker government, seeking domestic consensus for overhauling democratic institutions in the country of 170 million people, it is another challenge to juggle.

“India-Bangladesh relations have probably never experienced such intense strain before,” said New Delhi-based analyst Praveen Donthi, from the International Crisis Group.

There is deep resentment in Dhaka over the fate of fugitive ex-prime minister Hasina, who escaped a student-led uprising by helicopter in August 2024 and flew to New Delhi as thousands of protesters stormed her palace.

Interim leader Muhammad Yunus said popular anger in Muslim-majority Bangladesh had been “transferred over to India” because Hasina was offered sanctuary by New Delhi’s Hindu nationalist government.

Hasina, 77, has defied extradition orders to attend her crimes against humanity trial, and has already been convicted in absentia for contempt of court with a six-month sentence.

Md Touhid Hossain, who heads Bangladesh’s foreign ministry, said that “the relationship is now at the readjustment stage.”

Nobel Peace Prize winner Yunus’s first state visit was to China in March, a trip that saw him secure $2.1 billion in investments, loans and grants.

Beijing has also courted leading politicians directly.

Mirza Fakhrul Islam Alamgir, a senior leader of the Bangladesh Nationalist Party (BNP) — the expected election frontrunner — said China is “keen” to work with the next elected government with “sincerity, steadfastness, love, and affection.”

India has long been wary of China’s growing regional clout and the world’s two most populous countries compete for influence in South Asia, despite a recent diplomatic thaw.

Bangladesh has also moved closer to Pakistan, India’s arch-enemy.

In May, more than 70 people were killed in four days of missile, drone and artillery fire between the forces of New Delhi and Islamabad, sparked by a deadly militant attack on civilians in India-administered Kashmir.

The following month, officials from Dhaka and Islamabad met counterparts in China.

Chinese foreign ministry spokesperson Guo Jiakun said the trio had agreed to “cooperation programs” including in trade, industry, education and agriculture.

Obaidul Haque, who teaches international relations at the University of Dhaka, said talks with Beijing had “borne fruit,” including alternative health care after once popular medical tourism to India was restricted.

“For example, China designated three hospitals for Bangladeshi patients when India made access difficult,” he said.

Bangladesh and Pakistan — which split in 1971 after Dhaka’s independence war — began trade by sea last year, with direct flights also slated.

That sparked worry in New Delhi.

“The current Indian political leadership, owing to its ideological foundations... are unwilling to accept Dhaka under a government they perceive as Islamist and hostile toward India,” Donthi said.

“The visible engagement between Dhaka, Islamabad, and Beijing enhances this perception further.”

Both New Delhi and Bangladesh have imposed trade restrictions on each other.

India, which encircles much of Bangladesh by land, has imposed multiple trade restrictions — including tightening rules on Indian imports of jute fibers, ready-made garments, plastic products and food.

But trade between the neighboring nations remains high, said Md Humayun Kabir, a former Bangladeshi ambassador to Washington, who has also served in India.

But he urged caution, saying Dhaka should “tread carefully forming alliances,” and seek to strengthen “multilateral relations” as a balance.

“Cooperation still exists between the countries, but the warmth is gone,” he said.

Separately, Bangladesh, the world’s second-largest garment exporter, has also been caught in the global shakeup caused by US President Donald Trump’s tariffs.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, with Yunus in June telling US Secretary of State Marco Rubio of his “commitment to strengthening” ties.

But in terms of regional tensions, analysts say little will change soon — and warn they have the potential to escalate.

“Things might change only if New Delhi is satisfied with the electoral process and sees somebody amenable to it come to power in Dhaka,” the Crisis Group’s Donthi added.

“It is very unlikely that their position will change toward the current government in Dhaka,” he said.

“There may be attempts to undermine it rather than to collaborate.”