Pakistan and Iran have agreed to promptly conclude the Free Trade Agreement (FTA), according to a joint statement released on Wednesday, following the conclusion of Iranian President Dr. Seyed Ebrahim Raisi’s three-day official visit to Pakistan.
According to the joint statement, to bolster bilateral economic cooperation, both nations have committed to swiftly finalizing the Free Trade Agreement (FTA) and scheduling upcoming sessions of Annual Bilateral Political Consultations (BPC), Joint Business Trade Committee (JBTC), and the 22nd round of Joint Economic Commission (JEC) negotiations. They have also agreed to facilitate a regular exchange of economic and technical experts, along with delegations from Chambers of Commerce from both sides, to enhance economic cooperation.
Additionally, the declaration of the ‘Reemdan border point’ as an international border crossing under TIR and the opening of the remaining two border sustenance markets have been acknowledged. Both sides have also pledged to increase mutual interaction through frequent high-level visits to strengthen fraternal relations.
Moreover, there is a mutual commitment to expanding trade and economic cooperation, with a focus on transforming the common border into a ‘border of prosperity’ through joint development-oriented economic projects. This includes initiatives such as setting up joint border markets, economic free zones, and new border openings.
Furthermore, cooperation in the energy sector, including trade in electricity, power transmission lines, and the IP Gas Pipeline Project, has been emphasized. Both leaders have agreed to target a bilateral trade volume of $10 billion over the next five years.
The imperative of a long-term durable economic partnership and collaborative regional economic and connectivity model, particularly for socio-economic development in Iran’s Sistan-Balochistan Province and Pakistan’s Balochistan Province, has been underscored.
The joint statement highlights the consensus to fully operationalize barter trade mechanisms between the two sides to facilitate economic and commercial activity, especially under ongoing collaborative endeavors like border sustenance markets, contributing to improving the financial situation of residents and enhancing border security.
Furthermore, leveraging their geographic locations to promote connectivity between the two countries and the broader region has been stressed. Progress in the regular shipment of goods under the TIR Convention has been noted, with a commitment to fully operationalize it to promote efficient, speedy, and barrier-free trade between Pakistan and Iran, enhancing regional integration and connectivity across the wider ECO region.
As members of the Belt and Road Initiative (BRI) and Economic Cooperation Organization (ECO), both countries have expressed firm resolve to enhance cooperation in connectivity, infrastructure development, and energy sectors. They have also agreed to expand mutually beneficial linkages between the sister ports of Gwadar and Chahbahar.
Lastly, it’s worth mentioning that at the invitation of Prime Minister Shehbaz Sharif, the Iranian President paid an official visit to Pakistan from 22-24 April 2024, accompanied by a high-level delegation comprising the Foreign Minister of Iran and other cabinet members and senior officials.
