By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif said on Thursday that the country is nearing the finalization of a free trade agreement with Iran, aiming to fortify economic ties between the two nations, the state-run Associated Press of Pakistan (APP) reported.
Such an agreement would significantly reduce barriers to imports and exports, enabling the smooth flow of goods and services across borders with minimal government tariffs, quotas, subsidies, or prohibitions.
“Pakistan and Iran have decided to finalize the free trade agreement soon to exploit the immense potential in trade and investment,” PM sharif said after a meeting with Iranian President Ebrahim Raisi.
In a televised meeting, Prime Minister Sharif, seated alongside President Raisi, also extended a firm commitment to bolster security measures along the shared border between the two nations.
The two leaders inaugurated the Mand-Pishin border market. The market is one of six border markets planned along the Pakistan-Iran common border.
The establishment of the Mand-Pishin border market aims to facilitate increased cross-border trade, foster economic growth, and create new opportunities for local businesses.
Sharif emphasised that border markets would enhance trade and contribute to the development of both nations.
The Prime Minister said the Mand-Pishin border market and the Polan-Gabd electricity project are tangible demonstrations of this commitment and would pave the way for further cooperation, particularly in the economic domain.
Once the Polan-Gabd electricity transmission line project becomes operational, Iran will provide Balochistan’s Gwadar with 100 megawatts of electricity daily. According to the state-run APP, the transmission line will play a pivotal role in meeting the energy requirements of the region, including households and businesses, by importing an additional 100MW of electricity from Iran.
“The joint inauguration is a manifestation of the strong commitment of Pakistan and Iran to uplift the welfare of residents of the neighboring provinces of Balochistan and Sistan-o-Baluchestan, respectively,” the Foreign Office said in a statement.
The statement said the meeting between the two leaders was constructive, positive, and fruitful, covering various bilateral issues of interest, including trade and economy. Both sides agreed to strengthen cooperation in sectors such as trade, investment, information technology, agriculture, power, energy, and others.
Sharif also extended an invitation to the Iranian President to visit Pakistan, which was accepted.
Pakistan and Iran share a 959-kilometer border, commencing from the Koh-i-Malik Salih mountain and terminating at Gwadar Bay in the Gulf of Oman. Currently, the trade volume between the two countries stands at approximately $2 billion, with Iran exporting around 100 megawatts (MW) of electricity to the border regions of Pakistan.
In an interview with Iran’s official news agency IRNA, Prime Minister Sharif stressed the significance of enhanced cooperation with Iran, citing the energy projects and border markets as symbols of the enduring Pakistan-Iran friendship.
He said the deep-rooted religious, cultural, and linguistic ties between the two brotherly nations and highlighted the close collaboration between their governments for the betterment and socio-economic uplift of their peoples.
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