Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs

Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
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Pakistan Prime Minister Shehbaz Sharif and Iranian President Ebrahim Raisi witness signing of MoUs of cooperation in different fields between the two countries in Islamabad, Pakistan, on April 22, 2023. (Government of Pakistan)
Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
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In this photo released by Prime Minister Office, Iranian President Ebrahim Raisi, left, walks with Pakistan's Prime Minister Shehbaz Sharif during a welcome ceremony in the prime minister house in Islamabad, Pakistan, on April 22, 2024. (AP)
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Updated 22 April 2024
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Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs

Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs
  • The signed agreements were related to the fields of trade, science and technology, agriculture, health, culture, and judicial matters
  • Ebrahim Raisi met Pakistan PM, president and army chief amid efforts by both neighbors to mend ties after this year’s tit-for-tat strikes

ISLAMABAD: Iranian President Ebrahim Raisi said on Monday Islamabad and Tehran had committed to strengthening bilateral relations across political, economic, trade, and cultural domains through the signing of eight accords and memorandums of agreement.

Raisi arrived in Islamabad on Monday on a three-day visit as the two Muslim neighbors seek to mend ties after unprecedented tit-for-tat military strikes this year. He is accompanied by his spouse and a high-level delegation of cabinet members and businesspersons.

The Iranian president was presented with a guard of honor by a Pakistan army contingent upon his arrival at the Prime Minister’s House. He subsequently held meetings with Foreign Minister Ishaq Dar and Prime Minister Shehbaz Sharif.

The MoUs and agreements cover different fields including trade, science technology, agriculture, health, culture, and judicial matters. They include an MoU on the establishment of the Rimdan-Gabd Joint Free/Special Zone; on cooperation between the Ministry of Cooperative Labour and Social Welfare of Iran and the Ministry of Overseas Pakistani and Human Resources Development of Pakistan; on judicial assistance and legal cooperation at the ministry levels; on cooperation for animal hygiene and health; on mutual recognition in the field of quarantine and phytosanitary; and on the promotion of culture and films.

The signing ceremony also marked the ratification of a security cooperation agreement between the governments of two countries.

“Today in our meeting with [Pakistani] prime minister, and other members of the respective cabinet, we decided to promote the bilateral relations between the two countries at political, economic, trade, culture, including others, at all levels as far as possible,” Raisi said at a joint press stakeout with Pakistani premier Sharif.

The Iranian President said both countries were committed to combating terrorism, organized crime, narcotics, and various forms of insecurity that threatened not only the neighbors but the wider region.

“There are a number of common positions and stance between our two countries when it comes, for instance, to fighting against terrorism,” he said, adding that Iran and Pakistan shared a lengthy common border, which presented an opportunity to create and bring about welfare for the people residing in border areas and regions.

“The economic and trade volume between Iran and Pakistan is not acceptable at all and we have decided at the first step to increase the trade volume between our two countries to $10 billion,” Raisi added.

Speaking at the press conference, Sharif said both countries collectively needed to work to strengthen bilateral relations, transforming their shared border into a “beacon of development and prosperity.”

“Today presents an opportunity to forge our friendship into a catalyst for progress and prosperity and the decisions made today regarding economic progress and connectivity will yield visible results,” the PM said.

He also commended the “resolute stance” taken by the Iranian nation against Israeli actions in Gaza, where 35,000 people have been killed in Israeli air and ground offensives since Oct. 7. Sharif called on Iran and Pakistan to unite at the OIC and other international forums alongside fellow Islamic nations to push for a complete ceasefire.

Later, the Iranian president met with his Pakistani counterpart, Asif Ali Zardari, at the Presidency in Islamabad, where the two leaders expressed deep commitment to the longstanding Pakistan-Iran relations. 

“They emphasized the need for further deepening and broadening of bilateral relations in diverse fields and for enhancing high-level dialogue and mutually beneficial cooperation,” the Pakistan presidency said in a statement.

In a meeting with Pakistan Army Chief General Asim Munir, both sides concurred on the necessity to bolster bilateral cooperation while jointly striving for regional stability and economic prosperity, according to the Pakistani military. The discussions primarily focused on matters of mutual interest, notably regional peace, stability, and border security.

“COAS (chief of army staff) described the Pak-Iran border as ‘the border of peace and friendship,’ emphasizing the need for improved coordination along the border to prevent terrorists from jeopardizing the longstanding brotherly relations between the two neighboring countries,” the Inter-Services Public Relations (ISPR), the military’s media wing, said in a statement.

“President Ebrahim Raisi emphasized that by fostering cooperation between the two Armed Forces, Pakistan and Iran can attain peace and stability for both nations and the region.”

Raisi also met Yusuf Raza Gillani, chairman of the Senate of Pakistan, and National Assembly Speaker Ayaz Sadiq.

“OFTEN AT ODDS”

During his visit from April 22-24, the Iranian head of state is also scheduled to meet the Pakistani president, Senate chairman and National Assembly speaker. He will also visit the cities of Karachi and Lahore to meet the country’s provincial leadership.

Raisi’s visit is the first by any head of state to Pakistan after the South Asian nation’s contentious elections of February 2024 and the formation of a new government headed by Sharif. The visit also comes as tensions are high in the Middle East after Iran launched airstrikes on Israel a week ago and Israel retaliated with its own attack on Friday.

Pakistan and Iran have had a history of rocky relations despite a number of commercial pacts, with Islamabad being historically closer to Saudi Arabia and the United States.

Their highest profile agreement is a stalled gas supply deal signed in 2010 to build a pipeline from Iran’s South Fars gas field to Pakistan’s southern provinces of Balochistan and Sindh.

Pakistan and Iran are also often at odds over instability on their shared porous border, with both countries routinely trading blame for not rooting out militancy.

Tensions surged in January when Pakistan and Iran exchanged airstrikes, both claiming to target alleged militant hideouts in each other’s countries. Both sides have since then undertaken peace overtures and restored bilateral ties.

Former diplomat Naghmana Hashmi said the Iranian President’s visit with a large delegation indicated that both countries had put aside “all sources of irritation,” particularly the recent border skirmishes.

“He is also visiting the commercial centers like Lahore and Karachi, which absolutely is a very clear signal that we want to take the economic relationship that the two countries have, to greater heights, and to increase the flow of trade, to encourage the barter trade and the border markets that we have recently established,” she told Arab News.

Hashmi added that both countries were important forces for peace and security in the region.

“At the time when Iran’s tension with the Israel is at its peak, for the president of Iran to come to Pakistan shows his confidence, both as a leader and as a nation, on us being a good neighbor and they consider Pakistan as their great friend,” she added.

Former Pakistani ambassador to Iran, Riffat Masood, said Raisi’s visit was important in the backdrop of recent hostilities between Israel and Iran.

“And, of course, when the leadership of the two countries meet, they will definitely discuss the way forward in trying to bring an end to or at least reduce the hostilities,” she told Arab News.

She said Raisi’s visit would also further enhance security and economic cooperation between Pakistan and Iran.

“The recent border issues are not expected to have a significant impact,” Masood said, “as both countries swiftly addressed them before any negative consequences could affect bilateral relations.”


Saudi EXIM Bank signs $15m deal with Pakistan’s Bank Alfalah to boost trade

Saudi EXIM Bank signs $15m deal with Pakistan’s Bank Alfalah to boost trade
Updated 21 January 2025
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Saudi EXIM Bank signs $15m deal with Pakistan’s Bank Alfalah to boost trade

Saudi EXIM Bank signs $15m deal with Pakistan’s Bank Alfalah to boost trade
  • Agreement designed to enhance Kingdom’s exporters access to Pakistani markets
  • In October, businesses from both countries signed agreements worth $2.8 billion

RIYADH: The Saudi Export-Import Bank and Pakistan’s Bank Alfalah have inked a $15 million financing agreement, designed to enhance Kingdom’s exporters access to Pakistani markets and foster stronger trade and economic ties.

The new credit line deal seeks to increase the flow and competitiveness of the Kingdom’s non-oil exports as well as unveil new trade horizons between the two countries, the Saudi Press Agency reported.

This falls in line with Pakistan’s efforts to strengthen trade and investment ties with the Kingdom, with the Saudi government reaffirming its commitment in September to fast-track a $5 billion investment package for the Asian country.

This also aligns with Saudi EXIM’s goal of diversifying the Kingdom’s economy by offering financing and insurance products for non-oil exports in support of Vision 2030.

“The agreement comes within the bank’s efforts to strengthen strategic relations with international banks and financial institutions to provide financing solutions that contribute to the development of Saudi non-oil exports and enhance their competitiveness in Pakistani markets, by encouraging importers from Pakistan to import Saudi products and services, which opens up broad prospects for the development of trade and investment between the two countries, and creates more promising trade and investment opportunities,” said General Director of the Finance Department at Saudi EXIM Bank Abdul Latif bin Saud Al-Ghaith.

The Group Head of Corporate, Investment Banking, and International Business at Bank Alfalah, Farooq Ahmed Khan, said: “The agreement between Saudi EXIM Bank and Bank Alfalah Ltd. is a milestone in strengthening trade relations between the Kingdom and Pakistan.”

He added: “The financing line will enable Pakistani companies to access high-quality products in the Kingdom and will also enhance the volume of trade exchange between the two countries. 

“We at Bank Alfalah are proud to play a pivotal role in promoting trade and investment opportunities that are in line with the shared vision to strengthen and grow the economies of both countries.”

In October, Saudi businessmen expressed hope for successful collaborations in Pakistan, saying the country’s economic stability and improved regulatory framework had made it an attractive investment destination, following the signing of over two dozen deals between companies from both nations.


Pakistan condoles loss of lives as Turkiye ski resort fire kills 66

Pakistan condoles loss of lives as Turkiye ski resort fire kills 66
Updated 21 January 2025
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Pakistan condoles loss of lives as Turkiye ski resort fire kills 66

Pakistan condoles loss of lives as Turkiye ski resort fire kills 66
  • Fire erupted overnight in hotel of Turkiye’s Kartalkaya ski resort
  • Pakistan stands shoulder-to-shoulder with Turkiye, says foreign office

ISLAMABAD: Pakistan’s foreign office on Tuesday condoled over the loss of lives caused by a deadly fire at a ski resort in Turkiye that killed at least 66 people and wounded over 50 others. 

The blaze erupted overnight in the restaurant of the hotel in the famous Kartalkaya ski resort in Bolu province on Monday. 

Television footage showed the roof and upper floors of the building engulfed in flames as witnesses and reports indicated that the hotel’s fire detection system had failed to activate. 

As per reports, 234 guests were staying at the hotel when it caught fire.

“The government and people of Pakistan are deeply saddened by the devastating fire at a hotel in the Kartalkaya ski resort in Bolu, Türkiye this morning,” the foreign office said.

“Pakistan extends its heartfelt condolences to the Government and people of Türkiye, particularly to the families who have lost their loved ones.”

The foreign office said Pakistan stands shoulder-to-shoulder with Turkiye, reaffirming its solidarity with the nation. 

According to the state-owned Anadolu Agency, Turkish Justice Minister Yılmaz Tunç said four people, including the business owner, were detained over the fire incident.

He said six public prosecutors were assigned to the probe, adding that a team of experts were looking into the cause of the fire.

Kartalkaya, which lies about 295 kilometers east of Istanbul, is one of Turkiye’s premier winter tourism destinations that attracts thousands of visitors every winter.


Pakistan contacting UAE to extradite real estate tycoon accused of graft— state media

Pakistan contacting UAE to extradite real estate tycoon accused of graft— state media
Updated 21 January 2025
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Pakistan contacting UAE to extradite real estate tycoon accused of graft— state media

Pakistan contacting UAE to extradite real estate tycoon accused of graft— state media
  • State media alleges Malik Riaz Hussain has illegally occupied lands owned by state, private persons
  • Hussain, who is co-accused in land graft case involving former PM Imran Khan, denies wrongdoing

ISLAMABAD: Pakistan’s government is reaching out to the United Arab Emirates (UAE) to extradite real estate tycoon Malik Riaz Hussain, the co-accused and proclaimed offender in a land graft case involving former prime minister Imran Khan, on charges of building housing societies on lands he does not legally own, state-run media reported on Tuesday. 

Hussain, currently residing in the UAE, is one of Pakistan’s richest and most powerful businessmen and biggest private employers. He is known for being the chairman of Bahria Town Limited, which calls itself Asia’s largest private estate developer.

The development takes place after a Pakistani court last Friday sentenced Khan to 14 years in prison and his wife, Bushra Khan, to seven years in jail. Both were accused of receiving land as a gift from Hussain during Khan’s premiership from 2018 to 2022 in exchange for illegal favors. 

Khan says he and his wife were merely trustees and did not benefit from the land transaction. Hussain has also denied being involved in any wrongdoing related to the case. 

“The Government of Pakistan is reaching out to the Government of United Arab Emirates for the extradition of Malik Riaz through legal channels,” state broadcaster Radio Pakistan reported. 

Radio Pakistan said Pakistan’s anti-corruption watchdog is conducting an inquiry against Hussain and his accomplices for fraud, deceptive practices and cheating the public at large.

It said the National Accountability Bureau (NAB) has credible information that Hussain and his accomplices not only illegally possessed and occupied state-owned land but also land belonging to private persons in Karachi, Takht Parri, Rawalpindi and New Murree areas. 

The state broadcaster said Hussain is developing housing societies on these lands 
without obtaining regulatory permissions, accusing him of committing fraud against the state and public amounting to billions of rupees. 

It mentioned that Riaz has recently launched a project to construct luxury apartments in Dubai, warning the public against investing in it. 

“The general public at large is hereby advised and warned to refrain from investing in the stated project,” it said.

“If the general public at large invests in the stated project, their actions would tantamount to money laundering, for which they may face criminal and legal proceedings.”

Hussain has not responded to the latest allegations against him. However, in May 2024, the real estate tycoon took to social media platform X to condemn a raid by NAB at his company’s offices in Pakistan. 

Hussain vowed not to give in to “bullying.” The post, however, was a cryptic one as the real estate developer did not state specifically who was pressurizing him.


Pakistan says it has agreed $1 billion loan with two Middle Eastern banks

Pakistan says it has agreed $1 billion loan with two Middle Eastern banks
Updated 21 January 2025
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Pakistan says it has agreed $1 billion loan with two Middle Eastern banks

Pakistan says it has agreed $1 billion loan with two Middle Eastern banks
  • Loans are short-term with 6 to 7 percent interest rate, says Muhammad Aurangzeb
  • Pakistan aims to boost finances after securing $7 billion IMF bailout in September

DAVOS, Switzerland: Pakistan has agreed terms for a $1 billion loan with two Middle Eastern banks at a 6%-7% interest rate, its Finance Minister Muhammad Aurangzeb told Reuters on Tuesday, as the South Asian country looks for more financing.

“With two institutions we have now gone forward in signing up the term sheet — one bilateral and one for trade (finance),” Aurangzeb said during an interview on the sidelines of the World Economic Forum annual meeting in Davos.

The loans were short-term — or up to one year, Aurangzeb added.

Pakistan aims to boost its finances after securing a $7 billion International Monetary Fund (IMF) bailout in September 2024, with the first review set for late February.

“We have the first formal review of the EFF coming through toward (the) end of February,” Aurangzeb said. “I do think we are in good stead for that review.”

IMF extended fund facilities (EFFs) provide financial assistance to countries facing serious medium-term balance of payments problems resulting from structural weaknesses that require time to address.


Pakistan invites Cambodian businesses to invest in agriculture, tourism, textile sectors

Pakistan invites Cambodian businesses to invest in agriculture, tourism, textile sectors
Updated 21 January 2025
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Pakistan invites Cambodian businesses to invest in agriculture, tourism, textile sectors

Pakistan invites Cambodian businesses to invest in agriculture, tourism, textile sectors
  • Commerce Minister Jam Kamal attends inaugural Pakistan-Cambodia Joint Trade Committee in Phnom Penh
  • Pakistan and Cambodia’s bilateral trade of goods and services valued at $45.5 million, says commerce ministry

ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal Khan on Tuesday invited Cambodian businesses to explore investment opportunities in the country’s agriculture, textiles, pharmaceuticals and tourism sectors, his ministry said, as Islamabad eyes foreign investment to ward off a prolonged economic crisis. 

The development took place as both sides took part in the inaugural session of the Pakistan-Cambodia Joint Trade Committee (JTC) in Phnom Penh. 

Khan arrived in Cambodia on Jan. 19 for a three-day official visit to the country to engage in bilateral trade talks amid Islamabad’s push to seek closer trade ties as it targets sustainable economic growth. 

“Pakistan’s Minister for Commerce highlighted Pakistan’s strategic location, growing economy and investment-friendly policies, inviting Cambodian businesses to explore opportunities in agriculture, textiles, pharmaceuticals and tourism,” Pakistan’s Commerce Ministry said. 

The minister stressed Pakistan’s efforts to improve ease of doing business and its potential as a gateway to key markets in South Asia, Central Asia and the Middle East.

The ministry further said Khan and Cambodian Commerce Minister Cham Nimul discussed mutual interests such as trade, health, banking, agriculture, aviation and customs. 

She appreciated the first JTC meeting between the two sides and expressed interest in visiting Pakistan for the second JTC meeting after Khan extended her a formal invitation. 

Nimul called for exploring joint ventures to leverage regional opportunities, highlighting Cambodia’s market access within the Association of Southeast Asian Nations (ASEAN) region, Pakistan’s commerce ministry said. 

“Both countries also expressed interest in MoUs for aviation, banking, and customs cooperation,” the statement said. 

“With bilateral trade currently valued at $45.5 million, both sides acknowledged significant untapped potential and committed to building stronger ties.”

The ministry said both sides will appoint focal persons to expedite negotiations for signing MoUs aimed at enhancing cooperation. 

Additionally, Pakistan and Cambodia also agreed to share trade-related information, organize trade delegations and facilitate their respective business communities.