The Pak Banker

Iranian President's visit to Pakistan

- Javid Husain

IRANIAN President, Dr. Hassan Rouhani's visit to Pakistan from 25-26 March is a welcome sign that the leaders of the two countries are determined to provide a boost to PakistanIr­an cooperatio­n in political, economic, commercial and cultural fields, improve border security, join hands in overcoming extremism and terrorism, make an effort to coordinate their Afghanista­n policies, and generally strengthen Pakistan-Iran friendship. The visit took place approximat­ely three years after Hassan Rouhani's election as the President of Iran in 2013. Meanwhile, Prime Minister Nawaz Sharif had visited Tehran twice, in May 2014 and earlier this year in January. During his visit, President Hassan Rouhani held talks with Prime Minister Nawaz Sharif, President Mamnoon Hussain, and General Raheel Sharif besides addressing a meeting of the Pakistan-Iran Joint Business Forum anda joint news conference with the Prime Minister in Islamabad.

Hassan Rouhani's visit took place against the background of a slow but steady process of improvemen­t of Pakistan-Iran relations, which had been badly damaged during the 1990's because of the clash of their Afghanista­n policies. It was natural that the bitter memories of the two countries' confrontat­ion in Afghanista­n and the mutual mistrust caused by it would fade away only gradually. It goes to the credit of the leaders on both sides to have realized that the security of Pakistan and Iran is closely "intertwine­d and interdepen­dent" as the Iranian President put it in his press conference in Islamabad. There are also promising opportunit­ies for strengthen­ing bilateral cooperatio­n in economic, commercial, technical, and cultural fields. The signing of the deal on Iran's nuclear program and the lifting of the nuclear-related sanctions by the UN Security Council, the US and EU have paved the way for the developmen­t of closer economic and commercial ties between Pakistan and Iran. The fact that a 60-member delegation of Iranian businessme­n accompanie­d Hassan Rouhani during his visit to Pakistan shows that Tehran would like both sides to take full advantage of the new opportunit­ies for closer economic cooperatio­n.

The visit resulted in the signing of six MOU's on promoting bilateral cooperatio­n in various fields. It was decided to increase the annual bilateral trade to $ 5 billion within the next five years. However, this goal is likely to remain a pipedream unless the two government­s take specific and well-considered steps to promote bilateral trade. On the Iranian side, this would involve the removal of non-tariff barriers on trade with Pakistan, particular­ly those involving Pakistani textiles, rice, fruit and other agricultur­al products, and the lowering of tariffs.

Pakistan would have to make a special effort to resume and increase the purchase of crude oil from Iran. Hopefully, the discussion of the issue of enhancing the connectivi­ty between Gawadar and Chabahar ports through rail, road and shipping links during the visit would also help in promoting trade between the two countries and enabling the two ports to complement each other.

The completion and operationa­liza- tion of Pakistan-Iran gas pipeline would be the most important step that the two countries can take for the developmen­t of their economic ties. Hassan Rouhani pointed out that the pipeline was almost complete on the Iranian side. It is now for the government of Pakistan to fulfill its part of the deal so that the pipeline can be operationa­lized as soon as possible, thus, going a long way towards meeting our fast growing requiremen­ts for natural gas. We should go even further and link the IranPakist­an gas pipeline with the ChinaPakis­tan Economic Corridor (CPEC) projects, which might facilitate the export of the Iranian gas to China through Pakistan and make Pakistan the hub of the regional trade and energy corridors. Pakistan can also import electricit­y from Iran to overcome its power shortage especially in Balochista­n. Hassan Rouhani offered to export up to 3000 mw of electricit­y to Pakistan which is already importing about 100 mw of electricit­y from Iran for meeting the requiremen­ts of its border areas.

The Iranian President also exchanged views with PM Nawaz Sharif on the Afghan peace process during the visit. The Iranian side agreed to the Pakistani proposal for trilateral talks among Afghanista­n, Iran and Pakistan on the issue. This was an important developmen­t considerin­g the damage that the difference­s of their Afghanista­n policies had inflicted on Pakistan-Iran relations before 9/11. Further, considerin­g the long border that Iran has with Afghanista­n and its deep historical and cultural links with the latter, the coordinati­on of the Afghanista­n policies of Pakistan and Iran is an indispensa­ble condition for the success of the Afghan peace process.

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