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

Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
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Pakistan Prime Minister Shehbaz Sharif and Iranian President Ebrahim Raisi witness signing of MoUs of cooperation in different fields between the two countries in Islamabad, Pakistan, on April 22, 2023. (Government of Pakistan)
Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
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In this photo released by Prime Minister Office, Iranian President Ebrahim Raisi, left, walks with Pakistan's Prime Minister Shehbaz Sharif during a welcome ceremony in the prime minister house in Islamabad, Pakistan, on April 22, 2024. (AP)
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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

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.”


‘Beyond imagination,’ Pakistani PM says as November inflation slows to 4.9% year-on-year

‘Beyond imagination,’ Pakistani PM says as November inflation slows to 4.9% year-on-year
Updated 02 December 2024
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‘Beyond imagination,’ Pakistani PM says as November inflation slows to 4.9% year-on-year

‘Beyond imagination,’ Pakistani PM says as November inflation slows to 4.9% year-on-year
  • Sharif says inflation rate lower than government’s forecast, lowest in nearly six years
  • Last year Pakistan struggled through inflation as high as 38%,historic depreciation in currency

ISLAMABAD: Prime Minister Shehbaz Sharif said it was “beyond imagination” that Pakistan’s annual consumer inflation had slowed to 4.9% in November, lower than the government’s forecast and the lowest in nearly six years.

The finance ministry had projected inflation would slow to 5.8%-6.8% in November and ease to 5.6%-6.5% in December, it said in its monthly economic report published last week. The South Asian country slashed interest rates by 250 basis points earlier in November to help revive a sluggish economy amid a big drop in the rate of inflation.

Consumer inflation cooled from 7.2% in October, a sharp drop from a multi-decade high of nearly 40% in May 2023. Consumer prices in November rose +0.5% from October, according to the Pakistan Bureau of Statistics.

“After 70 months, the inflation rate in Pakistan in November is at its lowest level. In 2018, it was 3.5% during the era of [Prime Minister] Mian Mohammad Nawaz Sharif, this month, it has reached 4.9%,” Sharif told his cabinet in televised comments.

“This is a great grace of God. It is beyond imagination. Because inflation is the only tool that increases poverty or brings relief. This is a record after 70 months, this decrease will reduce the burden on the poor.”

Pakistan's annual consumer price inflation rate slowed to 9.6% in August, the first single-digit reading in almost three years.

A last-minute IMF rescue package last summer had helped Pakistan avert a sovereign default but, to secure it, the country had to revise its budget, and raise interest rates, taxes, and electricity and gas prices.

As a result, during the period, Pakistan struggled through inflation as high as 38%, historic depreciation in its currency, and contraction of the economy.

A new 37-month $7 billion loan bailout was approved for Pakistan by the IMF in September.


Pakistani squash legend Jansher Khan inducted into PSA Hall of Fame

Pakistani squash legend Jansher Khan inducted into PSA Hall of Fame
Updated 02 December 2024
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Pakistani squash legend Jansher Khan inducted into PSA Hall of Fame

Pakistani squash legend Jansher Khan inducted into PSA Hall of Fame
  • World No.1 for 97 months through his career, Khan’s final professional title count of 99 is the greatest of any player since records began
  • Khan won the World Championships eight times, a record in the men’s game, and added six British Open titles to a glittering trophy haul

ISLAMABAD: Malaysian retired squash player Nicol David and Pakistani great Jansher Khan have been honored this week as the newest members of the Professional Squash Association (PSA) Hall of Fame at a ceremony held in Hong Kong, the body said on X. 
David and Khan became the third and fourth members of the PSA Hall of Fame, which was launched earlier this year to recognize the achievements of the game’s most influential characters, past and present. David and Khan have joined inaugural inductees Susan Devoy from New Zealand, and Jahangir Khan, another Pakistani legend, in the PSA Hall of Fame as the association continues to celebrate its greatest icons.
“Congratulations to Nicol David and Jansher Khan,” PSA said in a social media post showing a picture of the two receiving the honor on the eve of the Hong Kong Squash Open.


A key part of the Pakistani dominance of the sport throughout the 1980s and 1990s, Jansher Khan won the World Championships eight times – a record in the men’s game – and also added six British Open titles to a glittering trophy haul.
A World No.1 for 97 months throughout his career, Khan’s final professional title count of 99 is the greatest of any player since records began.
“I feel very happy … I’m very happy to come to Hong Kong, see my old friends. It’s an honor to get this award,” Khan said in a statement released by PSA. 
David is widely regarded as one of the greatest players in the history of squash, with her career including an unprecedented eight World Championship titles and an unmatched 108-month reign as the World No.1. She also took home five British Open titles and won two Commonwealth Games gold medals. 
Since retiring, David has founded the Nicol David Organization, one of the Squash for Development programs that the PSA Foundation supports. The 41-year-old was announced as a member of the Laureus World Sports Academy – a recognized group of 69 sporting legends – in 2021.
“After doing so much in my squash career, you sometimes don’t realize how much you’ve done until the moment when you are given this opportunity to be recognized in a hall of fame,” David said in a PSA statement. “That’s when you you go ‘This is it!’ And I I feel amazing, it’s such an honor and I would like to thank PSA for honoring me.”
PSA Chief Executive Alex Gough said: “Nicol and Jansher are two of the most iconic figures in the history of squash and have both left a lasting legacy in the sport.
“Nicol inspired so many squash players – in Malaysia and across the globe – and her record of nine unbroken years at the summit of the world rankings will surely never be bettered. She is a fantastic ambassador for the sport and it was fantastic to see her honored with the title of Deputy Chef de Mission at the Paris 2024 Olympic Games this summer.
“Like Nicol, Jansher’s name will forever be linked to squash and the records he has amassed across the men’s game are nothing short of incredible. We are pleased to have had the opportunity to celebrate both players.”


Pakistan moves to enhance trade with Uzbekistan amid investment push in Central Asia

Pakistan moves to enhance trade with Uzbekistan amid investment push in Central Asia
Updated 02 December 2024
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Pakistan moves to enhance trade with Uzbekistan amid investment push in Central Asia

Pakistan moves to enhance trade with Uzbekistan amid investment push in Central Asia
  • Pakistan wants to consolidate its role as a pivotal trade and transit hub for landlocked Central Asian states 
  • In recent weeks, there has been flurry of visits, investment talks, economic activity between Pakistan and CARs

ISLAMABAD: The Ambassador of Uzbekistan to Pakistan, Alisher Tukhtayev, and Pakistani Federal Minister for Commerce, Jam Kamal Khan, on Monday discussed avenues to enhance business opportunities and trade relations as Islamabad seeks to enhance investment ties with the Central Asian Republics (CARs).
Pakistan is pushing to consolidate its role as a pivotal trade and transit hub connecting the landlocked Central Asian states with the rest of the world, leveraging its strategic geographical position. In recent weeks, there has been a flurry of visits, investment talks and economic activity between officials from Pakistan and the Central Asian nations.
Pakistan and Uzbekistan signed a $1 billion deal to increase bilateral trade in February 2023 at the eighth meeting of the Inter-governmental Commission on Trade-Economic and Scientific-Technical Cooperation in Tashkent. The agreement was aimed at encouraging the exchange of goods and services. The outgoing Uzbek Ambassador to Islamabad, Oybek Usmanov, said in September this year the countries were aiming to announce a $1 billion trade and industrial cooperation roadmap in the near future.
“Both sides agreed to work closely to unlock the full potential of their relationship,” a statement from the Pakistani commerce ministry said after Khan’s meeting with Tukhtayev, who was appointed in October. 
During the discussion, Khan expressed his admiration for Uzbekistan’s infrastructure and rapid development. 
“The progress in Uzbekistan is remarkable, and I was particularly impressed by its railway system,” the minister said, underscoring the importance of learning from Uzbekistan’s advancements.
Khan also highlighted newly launched flights between Pakistan and Uzbekistan, noting that their high occupancy rates were a “sign of significant potential for collaboration.”
“He identified religious tourism and other sectors as areas ripe for growth and called for further efforts to facilitate travel. Stressing the need for a streamlined visa process, he advocated measures to ensure genuine visitors while maintaining rigorous scrutiny,” the commerce ministry said. 
Khan proposed partnerships with local airlines to boost trade and travel connectivity and suggested organizing business-to-business (B2B) interactions during Prime Minister Shehbaz Sharif’s upcoming visit to Uzbekistan, the dates of which have not yet been confirmed. 
“The idea of holding a business forum during the visit also featured prominently in their discussions,” the commerce ministry added. 
“Ambassador Tukhtayev agreed on the untapped potential of bilateral trade, emphasizing sectors like agriculture, food, pharmaceuticals, and tourism. He reassured the minister of the Uzbek Embassy’s round-the-clock availability to facilitate coordination and promote business ties,” the statement added.
Pakistan and Uzbekistan established diplomatic relations in May 1992. 
Uzbekistan is the largest consumer market and second biggest economy in Central Asia. It was the first Central Asian country with which Pakistan signed a bilateral Transit Trade Agreement (UPTTA) and bilateral Preferential Trade Agreement (PTA) on 17 items. 
Bilateral trade with Pakistan (Jan-Dec 2021) amounted to $126.05 million, with $88.18 million exports to Pakistan and $ 37.87 million imports from Pakistan, according to the website of the Pakistani foreign office, which did not provide updated figures.


Traders welcome decision to keep Khunjerab Pass linking Pakistan, China open year-round

Traders welcome decision to keep Khunjerab Pass linking Pakistan, China open year-round
Updated 02 December 2024
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Traders welcome decision to keep Khunjerab Pass linking Pakistan, China open year-round

Traders welcome decision to keep Khunjerab Pass linking Pakistan, China open year-round
  • High-altitude Khunjerab Pass is closed from Nov. 30 to Apr. 1 each year due to harsh weather
  • This year, border crossing has been opened from Dec. 1 for all kinds of trade and transportation

KHAPLU, Gilgit-Baltistan: In a first, the high-altitude Khunjerab Pass, the only land-connected route between China and Pakistan and a major trade station between the two nations, will remain open year-round for all types of trade and transportation, officials confirmed on Monday, with businesses welcoming the move. 
At over 4.600 meters above sea level, Khunjerab, which connects Gilgit-Baltistan with China’s Xinjiang region, is the highest paved international crossing in the world and an important gateway to South Asia and Europe. 
The pass is located in the Karakoram and holds a significant strategic position on the northern border of Pakistan, specifically in Gilgit-Baltistan’s Hunza and Nagar Districts. China mainly imports textiles, agricultural products and daily commodities through the pass, and exports plants and herbs.
Due to high altitude and harsh weather conditions, the border was previously open only between April to November and remained closed from December to March. Last October, however, Caretaker Prime Minister Anwaar-ul-Haq Kakar said at the Belt and Road Forum in Beijing that the pass would be converted into an all-weather border.
“The Government of the People’s Republic of China has formally concurred to the year-round opening of the Khunjerab Pass,” a latest notification from Pakistan’s Ministry of Foreign Affairs said.
“Consequently, operation of the Khunjerab-Sost border crossing are hence forth expanded from 1st April – 30thNovember each year to year-round operation,” the statement said, instructing all relevant agencies and government departments to continue their operations at the port from Dec. 1. 
Confirming the development, Faizullah Faraq, the spokesperson for the Gilgit-Baltistan regional government, said authorities were “utilizing all resources” to clear the roads of snow on the Pakistani side to ensure smooth functioning of trade and transport activities. 
The Gilgit-Baltistan region in northern Pakistan, flanked by soaring mountain ranges and glaciers, is also a major tourist destination in the country. 
“The year-round opening of the border will also help in the promotion of tourism,” Faraq added. “The economic engagement of people of both regions [China and Pakistan] is associated with this border. So the local economy will be uplifted.”
Speaking to Arab News, Muhammad Iqbal, the president of the GB Importers and Exporters Association, welcomed the decision.
“The historic decision to keep the border open for the whole season will help boost import and export trade, and commerce between Pakistan and China,” he said. “For traders, this decision will ensure uninterrupted access to the Chinese market. This route will also give access to Central Asian and other countries and people-to-people contact between Pakistan’s G-B and China’s Xinjiang province will be enhanced.” 
Imran Ali, the president of the Gilgit-Baltistan Chamber of Commerce, said “new avenues of development” would be opened by keeping the border open throughout the year. 
“More than 20,000 people, including traders and laborers, are associated with this border, and due to this decision, business activities will be increased and traders and locals will directly get benefits,” he added.
According to APP, Pakistan’s state-run news agency, Khunjerab Pass recorded over 50,000 inbound and outbound passengers between Apr. 1 and the end of October, while import and export cargo volume reached 40,900 tones, up 42.6 percent and 72.7 percent year-on-year respectively.
China is a major ally and investor in Pakistan. The two countries collaborate on the China-Pakistan Economic Corridor, a flagship project under China’s Belt and Road Initiative, with more than $65 billion pledged for road, rail, and other infrastructure developments in the South Asian nation.


Pakistan sectarian clashes toll reaches 133 since Nov. 21 — provincial government

Pakistan sectarian clashes toll reaches 133 since Nov. 21 — provincial government
Updated 02 December 2024
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Pakistan sectarian clashes toll reaches 133 since Nov. 21 — provincial government

Pakistan sectarian clashes toll reaches 133 since Nov. 21 — provincial government
  • A tribal jirga, or council of elders, had been formed to ensure a truce that has remained elusive so far
  • Government says bunkers set up by armed groups to be dismantled and heavy weaponry confiscated

PESHAWAR: The death toll from sectarian clashes in northwest Pakistan has risen to 133, the provincial government said Monday, as tribal elders failed to ensure a truce between the feuding Sunni and Shiite Muslim communities.
Pakistan is a Sunni-majority country, but Kurram in Khyber Pakhtunkhwa province, near the border with Afghanistan, has a large Shiite population and the communities have clashed for decades.
At least “133 precious lives have been lost, and 177 people injured” in sporadic clashes since November 21, said a statement issued after a provincial cabinet meeting.
A tribal jirga, or council of elders, had been formed to ensure a truce that had remained elusive so far, it said.
“Bunkers set up by armed groups in Kurram will be dismantled and heavy weaponry ... will be confiscated,” the statement added.
The latest fighting broke out last Thursday when two separate convoys of Shiite Muslims traveling under police escort were ambushed, killing more than 40.
Since then days of fighting with light and heavy weapons have brought the region to a standstill, with major roads closed and mobile phone services cut as the death toll surged.
Anfal Hussain, who owns a pharmacy in Parachinar area, said “2024 has been extremely tough for Kurram” with dozens killed in clashes.
“I’ve been running this pharmacy for 11 years, but during the recent clashes the highway has been practically closed since October. This has caused significant shortages of food supplies and medicines,” Hussain, 36, told AFP.
“Many major illnesses cannot be treated in Parachinar’s hospitals, but they remain helpless due to the road closures,” he added.
A senior security official in the provincial capital Peshawar, speaking on condition of anonymity, on Friday told AFP that officials with the help of tribal elders were “close to achieving a truce,” after two earlier deals had failed to stymie the fighting.
“There are only two villages now where the sporadic firing is still taking place,” he said.
Police have regularly struggled to control violence in Kurram, which was part of the semi-autonomous Federally Administered Tribal Areas until it was merged with Khyber Pakhtunkhwa in 2018.
The Human Rights Commission of Pakistan said 79 people had been killed in the region between July and October in sectarian clashes.
The feuding is generally rekindled by disputes over land in the rugged mountainous region, and fueled by underlying tensions between communities from different sects.