TEHRAN – Following the 22nd Iran-Pakistan Joint Economic Committee meeting in Tehran (September 15-16), co-chaired by Iran’s Minister of Transport and Urban Development, Farzaneh Sadegh, and Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, Minister Sadegh published an article on the ministry's news portal. Below is a translation of her piece.

On the eve of new developments in the regional economic order, the Iran-Pakistan Joint Economic Committee has once again provided a platform for developing sustainable cooperation between these two important and influential neighbors in South Asia.

Iran-Pakistan relations over the past decades have always been influenced by regional developments, global politics, and security imperatives. Although political relations between the two countries have always been maintained at an acceptable level, their economic and trade capacities have not been actualized as they should have been. Now, on the eve of new developments in the regional economic order, the Iran-Pakistan Joint Economic Commission has once again provided a platform for developing sustainable cooperation between these two important and influential neighbors in South Asia.

The 22nd meeting of the Joint Economic Committee was not only an opportunity to review the past and chart the future of the two countries' economic relations, but also, by holding an unprecedented joint business conference on its sidelines, sent a clear message to regional economic actors, governments, and observers: Iran and Pakistan are ready to turn their potential capacities into the driving engine of economic and trade cooperation.

Common Capacities; From Transportation to Energy

Along with their long shared border, Iran and Pakistan also enjoy deep cultural and historical commonalities. The adjacency of the two countries in a region that houses the main arteries of energy, transportation, and trade has created a unique position for economic cooperation.

On one hand, Iran, with its vast oil and gas resources, can play a role as a reliable energy supplier for Pakistan. On the other hand, Pakistan, with its young and growing population and extensive needs in the fields of energy, infrastructure, and trade, can be one of Iran's most important export markets.

This natural convergence, although overshadowed by political considerations and sanctions in the past, can become the driving engine of the two countries' economic interactions in the new regional atmosphere.

Joint Committee; From Formal Diplomacy to Field of Action

The Iran-Pakistan Joint Economic Committee has, over the past two decades, always been a platform for negotiation and agreement in various fields. But what distinguished the 22nd meeting of this committee was the serious entry of the private sector into the process of dialogue and cooperation.

Holding a joint business conference with the participation of 50 Iranian companies and over 100 Pakistani companies, totaling 500 participants, indicated the serious determination of economic actors in both countries to move beyond the traditional boundaries of interactions. Such an event is rarely seen on the sidelines of Joint Committee meetings, which doubles its special importance.

At this conference, economic actors had the opportunity to closely familiarize themselves with the capacities, needs, and areas of cooperation of the other side and propose solutions for removing obstacles to direct trade, joint investment, and the development of border infrastructure.

Role of Private Sector in Flourishing Relations

One of the key points of this meeting and the business conference was the emphasis on the centrality of the private sector in Iran-Pakistan economic relations. The experience of successful countries in developing bilateral trade has shown that without the presence and initiative of economic actors, government agreements cannot achieve the desired result.

The Iranian companies present at this conference were mainly active in the fields of energy, petrochemicals, food industries, pharmaceuticals, construction, and technical-engineering services. In contrast, Pakistani companies had also entered the arena in the sectors of agriculture, textiles, transportation, and information technology. This diversity of fields indicates the wide range of cooperation capacities between the two countries, which can bear fruit in the form of joint investments or technology exchange.

Logistical Routes and Regional Corridors

One of the important topics discussed in the Joint Committee was the role of Iran and Pakistan in regional transportation corridors. Iran, as a connecting bridge between Central Asia, the Caucasus, the Persian Gulf, and Europe, and Pakistan, as a gateway to South Asia and the Indian Ocean, both have a unique position in connecting trade chains.

The development of joint rail and road routes, facilitating the transit of goods, and establishing modern border infrastructure could significantly reduce the cost of trade and increase the volume of exchanges. In this regard, joint investment in border terminals and utilizing the capacity of Iranian and Pakistani ports as key links in the transit chain were put on the agenda.

Of course, it should not be forgotten that the path to expanding Iran-Pakistan economic cooperation also faces challenges. Economic sanctions against Iran, security considerations at the borders, weaknesses in banking infrastructure for financial exchange, and logistical limitations are some of these challenges.

MA