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Boost in Pak-Iran ties

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IN a welcome development, Pakistan and Iran have taken practical and much-needed measures to bolster their ties to the advantage of the two countries. Prime Minister Shehbaz Sharif and Iran’s President Seyed Ebrahim Raisi Thursday jointly inaugurated the Mand-Pishin border sustenance market. The two leaders also inaugurated a 100MW Polan-Gabd electricity transmission line project from Iran to Gwadar at Mand-Pishin crossing point of Pakistan-Iran border, and electricity started flowing to the Pakistani area immediately after the ceremony. More importantly, after their ‘very productive and positive’ meeting, the Prime Minister told a gathering of local elders that they have decided to move forward in the areas of trade, investment, information technology, agriculture and other sectors.

The two projects were conceived much earlier but credit goes to the coalition government for translating them into reality in the shortest possible time. The border market is first of the six to be constructed along Pak-Iran border under a 2012 agreement signed by the two countries to provide a thriving platform for increasing cross-border trade, fostering economic growth and opening up new avenues of opportunity for local businesses. In fact, Pakistan has a plan to establish 18 border markets – 12 along the border with Afghanistan and remaining along the border with Iran. It is expected that establishment of these markets would help eradicate the menace of smuggling, boost legal trade, reduce outmigration from border areas and improve the socio-economic well-being of the residents living in these regions. As pointed out by the Prime Minister, the border markets would also serve as a stepping stone for greater cooperation between our two countries, especially in the economic domain. There is dire need to increase the trivial bilateral trade which currently stands at just $359 million and in this backdrop the decision of the two leaders to jack it up to $5 billion is really ambitious. Early conclusion of free trade agreement and effective steps to curb free for all smuggling of goods, especially petroleum products, can help increase the bilateral trade meaningfully. Though fuller details are not available, one hopes the two countries would provide necessary facilities in these markets to allow the bilateral trade to flourish. In principle, these markets should be duty free (no customs duty or non-tariff barriers as currently we witness in Pak-Iran trade) and ease of documentation for buyers and sellers of these markets. Availability and production of goods and material that are in demand in these regions should also be ensured to make the plan of border markets a real success. There have been suggestions about establishment of small and medium enterprises like fruit processing plants and repair workshops along the border to exploit talent of the local people and this should be one of the points for the two countries in their future talks aimed at boosting bilateral trade and economic cooperation. Increased opportunities for productive engagements would brighten prospects for progress and prosperity of otherwise backward regions of the country, contributing to the cherished goal of promoting peace and security which is a shared objective of the two countries in view of attempts being made by conflicting international interests in the strategically important Balochistan. As for the 100MW Polan-Gabd electricity transmission line project, it was pending since 2009 and has now been completed in a record time of four months under the famous Shehbaz speed. The project would unleash development, trade, business and employment opportunities contributing to future prosperity of people of Gwadar and Balochistan. Supply of uninterrupted power being a basic necessity, it is hoped that the project would expedite operationalization of many developmental projects in Gwadar, creating enormous employment opportunities. Pakistan Prime Minister also put forward suggestions regarding China-Pakistan Economic Corridor (CPEC) and it would be worthwhile if the relevant ministries and institutions of the two countries concentrate on the follow up so that something concrete emerges when the Iranian President visits Pakistan before expiry of the term of present assemblies in Pakistan i.e. before August 2023. There is no word about the crucial Iran-Pakistan gas pipeline project, which faces extraordinary delays mainly because of international sanctions against Iran and Pakistan’s limited capacity to fund the project on its own. A satisfactory solution needs to be found through intensive dialogue so that the groundwork on the project begins without further delay in view of crippling gas shortages faced by Pakistan.

 

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