Iran Press/ Asia: In the Name of God the Most Beneficent, the Most Merciful
Ladies and Gentlemen, Dear Audience
Salam Aleykom,
I am very pleased to be present in the city of Karachi, Pakistan's economic and commercial hub, in the company of dear Pakistani brothers and sisters and businessmen and economic activists of this country. The Islamic Republic of Pakistan, as a neighboring Muslim country, has always been of great importance to the Islamic Republic of Iran.
The existence of more than nine hundred kilometers of common land border and many historical, cultural, and religious commonalities have made the connection between the two countries deep and unbreakable. Inspired by the golden principle of its foreign policy under the title "Neighbors First" and also based on the strategy of developing relations with Islamic countries,
Iran has prioritized the promotion of its relations with Pakistan. In this line, His Eminence, the Supreme Leader of the Islamic Republic of Iran, has repeatedly declared his full support for the expansion of relations with this Muslim neighbor. His Eminence has always considered the relationship between the nations of Iran and Pakistan to be heart-felt and deep-rooted and has always underscored the importance of strengthening and enhancing the ties between the two countries as much as possible. Based on this, all the governments in Iran have paid high attention to the promotion of relations with Pakistan, and Mr. Raisi, the current President of the Islamic Republic of Iran, has specially emphasized activating all available capacities in line with the interests of the two nations.
In this regard, in recent years, effective measures have been taken to expand the relations between the two countries, especially in the economic field. For example, with the cooperation of both sides, two new border terminals have been opened in the areas of "Rimdan-Gabed" and "Pishin-Mand" along the common border, which has increased the number of official crossings between the two countries to three. Also, an MOU on cooperation for the opening of six joint border markets has been signed, and the first joint market has recently been opened with the presence of high-ranking officials of the two countries in the Pishin-Mand region.
In addition, due to the fact that both countries have a strategic geographical position and are located on the path of international transportation corridors and global transportation plans such as the Belt and Road Initiative, efforts have been made to make use of the existing capacities for the development of bilateral and regional cooperation in the fields of transportation and transit.
In this context, the transit of Pakistan's products under the Tire Convention has been started on a trial basis through the Mirjaveh-Teftan border crossing and by passing through the territory of the Islamic Republic of Iran. Moreover, measures have been taken to resume the "Eco Freight Train" activity on the Islamabad-Tehran-Istanbul railway route.
These routes have significantly reduced the cost and time of sending Pakistani goods to their destinations and, therefore, can play an essential role in increasing Pakistan's exports, especially to countries such as Turkiye, Central Asia, and Europe. It is worth mentioning that the geographical location and the complementary nature of the two ports of Chabahar (on the Iranian side) and Gwadar (on the Pakistani side) are other capacities that can be exploited in order to increase the bilateral and regional economic cooperation of the two countries.
In addition, there are currently four direct flights between different cities of the two countries, and we hope that in the near future, with the cooperation of the relevant parties, a direct flight will be established between the capitals of the two countries, i.e., Tehran and Islamabad.
The economies of Iran and Pakistan are inherently complementary, and this factor has provided a significant capacity for the expansion of trade cooperation between the two countries.
Pakistan can be a supplier of Iran's needs, especially in the agricultural sector, and Iran can cover Pakistan's need for various goods as well as energy. Pakistan is a developing economy with an increasing need for energy resources, and Iran is one of the richest countries in the world in the field of energy carriers. Iran is ready to meet Pakistan's needs in the field of energy (including oil and petroleum products, gas, electricity, etc.).
For this purpose and based on the previous agreement between the two countries, the Iran-Pakistan (IP) gas pipeline, which is the cheapest and safest way to supply gas to Pakistan, has been extended by the government of the Republic of Iran to the border of Pakistan, and its finalization requires the actions of the Pakistani side is based on the afore-said agreement. Implementing this pipeline can play an essential role in providing the gas needed by Pakistan's industrial and domestic sectors in a sustainable and cost-effective manner. Iran's electricity exports to Pakistan have continued and increased.
In this context, a part of the Polan to Gwadar electricity transmission project was recently inaugurated with the participation of high-ranking officials of the two countries on our shared border, and we hope that the other part of this project will also be implemented in the near future. According to the latest statistics and despite various obstacles and restrictions, the total bilateral trade between Iran and Pakistan has been going up in recent years and reached more than two billion three hundred million dollars in the 2022-2023 fiscal year.
This amount of trade between the two countries has been unprecedented, an essential part of which was due to the significant rise in Iran's imports from Pakistan. We hope that with the cooperation of the relevant parties, in the near future, we will see the volume of trade agreed upon by the two sides, i.e., 5 billion dollars per year.
To this end, promoting cooperation in the field of monetary and financial exchanges and reducing tariff and non-tariff barriers between the two countries is paramount. Currently, the barter trade agreement between Zahedan and Quetta Chambers of Commerce has been signed, which we hope will be implemented soon, and the barter mechanism will be used on a wider level by all businesspeople and chambers of commerce of the two countries.
Furthermore, free trade negotiations between the two countries are ongoing, four rounds of which have been held so far, and the fifth one is scheduled to be held in the near future. Besides, The Islamic Republic of Iran and the Islamic Republic of Pakistan signed a preferential trade agreement in 2005, the accurate and complete implementation of which can lead to the development of trade cooperation.
In order to hold consultations and discussions on these issues, there are several joint arrangements in the economic field between the two countries, among which one can mention the joint economic commission and the joint committees for trade, border trade, banking, and investment. Regularly holding meetings of these committees and commissions with the presence of the relevant officials of the two countries has provided a good opportunity to propose and discuss issues of mutual interest, as well as to follow up on agreements and remove possible obstacles to the advancement of economic and commercial cooperation.
In this regard, last year, the 21st meeting of the Joint Economic Commission of the two countries was held in Islamabad after a five-year hiatus, and the implementation of its agreements is on the agenda of the relevant departments of the two countries. Also, the simultaneous membership of Iran and Pakistan in regional arrangements such as the Economic Cooperation Organization (ECO), the Group of Eight Developing Islamic Countries (D8), the Shanghai Cooperation Organization, and the Asian Trade Union (ACU) as well as the constructive bilateral in international bodies such as the World Bank, the International Monetary Fund, the Economic and Social Council of the United Nations (ECOSOC) and the United Nations Industrial Development Organization (UNIDO) provide a suitable platform for promoting commercial and economic relations.
Nevertheless, the private sector, as the driving engine of the two countries economies, plays an undeniable role in removing trade barriers and developing bilateral economic cooperation. In this regard, chambers of commerce can play a central role. By holding joint face-to-face and virtual meetings and setting up trade exhibitions, they can take an essential step in informing businessmen and private sectors of the two countries.
Additionally, chambers of commerce and private sector businessmen, as the main stakeholders and beneficiaries of the commercial policies implemented by the governments, can provide the necessary guidance and consultations to the statesmen of the two countries in the field of appropriate decision and policy-making to remove obstacles and facilitate and develop bilateral economic ties. In this line, the Islamic Republic of Iran welcomes increased communication between the two countries' commercial and trade sectors, industries, and businesses.
In addition, due to the existence of people-to-people ties and the availability of numerous tourist attractions, the Islamic Republic of Iran supports the development of tourism between the two countries. To that end, Iran has hosted a significant number of Pakistani pilgrims and tourists every year. In addition to accepting pilgrims and due to the Republic of Iran's remarkable progress in health and treatment, it stands ready to host health tourists and provide quality and affordable medical services to the dear Pakistani sisters and brothers.
In conclusion, I would like to point out again that due to the deep cultural, religious, and historical relations and the gift of the two countries' neighborliness, the people of Iran and Pakistan have always been by each other's side, and their friendship will be eternal.
However, the full utilization of these common links, as well as the geographical capacities and complementary economies, requires the serious and all-round efforts of the officials of the governmental and private sectors and our diplomatic efforts to draw and implement the road map for the comprehensive development of economic and trade relations will continue based on the will of the two nations to serve their interests. We hope that with the rise of cooperation between the two friendly and brotherly countries of Iran and Pakistan, we will witness the ever-increasing expansion of bilateral economic and commercial cooperation.
Long live the friendship between Iran and Pakistan.
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