ISLAMABAD – Exploration of expansion in bilateral opportunities, an anticipated trade volume of $10 billion and a review of connecting linkages between Iran and Pakistan have been the key strategic outputs of the recent state visit of Iranian President Dr. Masoud Pezeshkian to Pakistan. 

The visit is not only significant in terms of strategic relationship between the two brotherly Islamic nations but serves as a launchpad to a joint future in the context of regional dynamics, economic instability and the everchanging geopolitical situation around the world. The political and national determination of both the nations came under the spotlight during the visit where 12 bilateral agreements were signed as a testament to the bilateral commitment to a long and strong economic and brotherly partnership.

Cultural roots and mutual regional dependence serve as the backbone to the development. For both Iran and Pakistan, the trade volume of $10 billion is a modest representation of what both countries plan to accomplish together through a wave of transformative change that is mutually beneficial and globally aligned. The current trade volume between Pakistan and Iran is quite limited, primarily due to global sanctions, limited banking channels, infrastructure issues at the border and logistical challenges. However, with the recent bilateral commitments both countries plan to revive barter trade, enhance customs coordination for better trade clearance and establish a joint trade facilitation system to achieve a larger and more stable trade volume. Iran’s exports to Pakistan could be focused on the much-needed oil, gas and electricity sector whereas Pakistan can offer Iran with its world-renowned textile, pharmaceuticals, agricultural goods and the budding industrial products.

In private sector business interactions, both governments can offer engagement opportunities to trade and business bodies like the Chambers of Commerce, the business councils and SME networks. These bodies can explore opportunities for investment and development in key sectors like agriculture, petrochemicals, tourism and information technology. Iran’s interest in joining the Belt and Road Initiative (BRI) during the visit is perhaps the most significant regional trade development seen in decades. Through this anticipated partnership, Iran can not only propose itself as a partner in the revolutionary, China-Pakistan Economic Corridor (CPEC) but can also provide Pakistan with an opportunity to serve as a logistical and commercial bridge between China and Iran, creating the strongest tri-national corridor of trade and energy in the Global South.

Pakistan’s modernized road and rail networks developed under BRI and CPEC can help Iran export to and from China creating a strong, protected and economically viable supply chain. Trade through Gwadar Port could help reduce dependence on expensive sea routes and in exchange Pakistan could gain transit revenues, infrastructure development and further geopolitical stability in the region.

The bilateral trade and partnership between Iran and Pakistan are the revival of centuries old routes that could cater Central Asia by linking Kazakhstan, Turkmenistan and Uzbekistan into a broader regional trade chain. The anticipated routes would not only revolutionize regional trade but would also help bring the regional powers together in a vision of regional peace and stability.

The leadership of Pakistan and Iran realizes the futuristics potential of Gwadar and Chabahar port that complement each other and can play a vital role in expanding maritime connections in the region. The ideas of a joint maritime cooperation framework could prove mutually beneficial as both ports can be connected through roads and rail helping increase cargo, creating employment and push forward economic activity across Baluchistan and Sistan-Baluchistan regions. The Gwadar-Chabahar cooperation model is crucial to guide other regional port cities that can help blue economy growth in South Asia and the Middle East and landlocked Central Asia.

During the visit, Iran and Pakistan have also jointly agreed to upgrade the Quetta-Zahedan railway line and revive interest in the long-stalled Islamabad-Tehran-Istanbul (ITI) rail project. The modernized project would not only help with timelines and cargo but would also help integrate infrastructure based on trust between the two nations. Since travel volume between both countries is always on a rise, better rail and road links will not only reduce travel time but would also cut down transport costs and the risks associated with sea routes. For the purpose, an increased number of vehicles operating along border routes and improved cross-border logistics were also discussed during the visit. The Pakistan’s proposal on formation of bilateral working groups to accelerate implementation of these projects aim at turning diplomatic ambitions into economic realization.

People-to-people exchanges, cultural interaction and media collaboration remained other key areas of mutual interest during the visit. Under the context, both sides agreed to increase existing religious tourism, educational cooperation and youth and academic exchanges between the two countries. The All-Pakistan Journalists Association (APJA) among other media organizations has expressed keen interest in collaborating with Iranian counterparts to create joint reporting projects, exchange programs and co-produced documentary videos that highlight bilateral development stories. A unified narrative of progress, peace and resistance against oppression is a key consideration for both Pakistan and Iran in the age of digital and information warfare. Media-to-media relations not only act as a reflection of diplomacy but can also increase understanding between the two nations and can help dispelling myths and misconceptions that often lead to rifts and misunderstandings.

Prime Minister Shehbaz Sharif and President Asif Ali Zardari of Pakistan took the visit as an opportunity to reiterate Pakistan’s unwavering support to Iran and the Iranian people in the face of Israel’s aggression and foreign hostilities. The solidarity was acknowledged and appreciated by the Iranian leadership with a message of love for consistent support by the Pakistani nation. For both brotherly nations, the diplomatic support is not just symbolism but a reiteration of the fact that both the countries are partners in the regional stability, defenders of each other’s’ sovereignty and proponents of Muslim unity. In a global divide of geopolitics, the Pak-Iran unity is nothing less than a strategic asset. Both Iran and Pakistan understand that regional peace and stability are must for economic development. The joint efforts of both nations in reinforcing border security, leading counter-terrorism cooperation and taking anti-smuggling initiatives show that both Iran and Pakistan share a commitment to strive towards investment and progress.
For both the countries, peace and harmony are not just visions and dreams but an imperative part of regional policy. Only through regional stability and cooperation, can both countries reach the joint goal envisioned in the economic agreements signed during this visit.

President Dr. Masoud Pezeshkian’s successful visit to Pakistan has opened an era of revival for mutual trust and bilateral confidence between Pakistan and Iran. The visit laid the foundations of development in key strategic areas like infrastructure, trade, diplomacy and culture but every single aspect needs a follow through of consistency, coordination and commitment at all levels of leadership.

With the passage of time, the leadership in both the countries are more determined that both the nations have a shared responsibility to prosperity and development for their people. The world is watching as Pak-Iran partnership is ready to take the stride towards a future of mutual development and trade, like the world has never seen in the global south before.