Better sense prevailing
The decision to improve trade relations with Iran reflects a timely understanding, on Islamabad’s part, of changing regional dynamics. That trade with such a resource rich, and mostly friendly, neighbour hovers around $1 billion per annum in good times is unacceptable, and shows how years of bad policy and international sanctions can restrict productive commerce. Suddenly, though, the PML-N government is positioning to exploit the post-sanctions environment. Iran has already offered electricity, which is more than welcome. The pipeline can also be brought back online. And Iranian bazar merchants, who control trade and business positions across the Gulf, can also set up shop in Pakistan; bringing their usually large investments.
There is, of course, always a political side to dealing with Iran, which invariably overlaps with other crucial political and business decisions. The recent agreement on border security now appears part of a larger integration plan. Tehran has been very unhappy over the last few years because of al Qaeda activity near its borders, and also the occasional infiltration. But interests have converged since Zarb-e-Azb, and the two countries are on the same side in the international war against terrorism, even if positions of other major players are not always clear.
There is a need to build on this recent progress. Raising Pak-Iran trade to $5 billion in five years is ambitious, but achievable given the potential, and need, for such interaction on both sides of the border. It will also help that areas near the border, on both sides, are now expected to be much calmer. The N-league is clearly serious about its trade outreach initiative. They even tried to get India to play ball. That makes the sudden Iran option that much more welcome. Hopefully the political and bureaucratic machinery will now do what is needed to make this exercise as smooth as possible.