Pakistan and Iran on Thursday decided to expedite gas pipeline project and to rationalise tariff regime to boost the bilateral trade besides agreeing for an investment fund to encourage the private sector to undertake investment in their respective countries and import of 1000 megawatts (MW) of electricity from Iran.
These major decisions were made during a meeting between Iranian Foreign Minister Dr Akbar Salehi and Prime Minister Yusuf Raza Gilani. Both the leaders also decided that the joint ministerial commission should meet frequently to follow up decisions taken at various levels of meeting between the two countries. They also exchanged views on a whole gamut of relations spreading over trade, energy, communications, rationalisation of tariff and combating the threat of terrorism, which poses grave dangers to the security and economic advancement not only of the two countries but also of the region.
The Prime Minister said that Pakistan had also embarked upon improving its relations with its neighbours since improved ties with regional countries entails that they would not need to seek assistance of countries beyond the region. It is in pursuance of this paradigm shift that Pakistan has been reaching out to its neighbouring countries such as Iran, Afghanistan, India, China, Russia and Central Asian Republics to improve its relations in qualitative terms adding that the response has been extremely encouraging. He emphasized on the importance of expediting the projects of gas pipeline and import of 1000 MW electricity from Iran to Pakistan. The Iranian foreign minister informed that Iranian part of gas pipeline would be completed by the middle of next year. About the export of 1000 MW electricity, the foreign minister said that Iran could export the electricity even now if it could be connected with the grid system of Pakistan. During the meeting, the Iranian minister said that Iran was ready to help Pakistan in all possible ways because Iran is a reliable friend, a neighbour and considers Pakistan’s stability, security and prosperity as Iran’s own.
The prime minister said that Joint Economic Ministerial Commission of the two countries should meet frequently to ensure the follow-up and timely implementation of the decisions taken by the two countries at various levels by the respective governments’ officials. It was also decided in the meeting to create an Investment Fund to encourage the private sector in particular to undertake investment in the two countries. Pakistan also agreed to allow the Iranian Government to open up a Bank in Pakistan to facilitate the business community to play their role in the development of their economies. Turkey and Iran have also concluded similar arrangements to jump-start economic cooperation. It was also decided to rationalise the tariff regime between the two countries to pick up trade and curb smuggling. The Iranian Foreign Minister said that trade between Iran and Turkey would touch 15 billion dollars this year and trade between Pakistan and Iran is just a fraction i.e. Pakistan exports to Iran are about 150 million dollars and Iran exports to Pakistan are about $1.2 billion. On the question of terrorism, the Prime Minister said that the interior ministries of the two countries should meet to evolve a comprehensive strategy to fight the menace of terrorism posing serious threat to the countries of the region and indeed to the whole world.
The Iranian foreign minister said that his country would consider the proposal of Pakistan regarding the opening of Consulate at Bandar Abbas as the proposal has been mooted for the first time. Both the leaders were of the view that 250 million people of the two countries provide a vast market for the economies of the countries. By establishing effective communication and transport mechanism providing connectivity, both countries could realise their full potential. Iranian foreign minister proposed that Pakistan should link it up with the rail link now in progress between Iran, Oman, Turkmenistan, Kazakhstan and China. The prime minister said that he was looking forward to meet the Iranian President and the Vice President during his visit to brotherly country soon. The Iranian minister assured the prime minister that he would ensure in his capacity to pave the way for enhancing cooperation between the two countries and if there are irritants he would address those promptly, thoroughly and comprehensively. Meanwhile, the Iranian minister also called on his Pakistani counterpart, Hina Rabbani Khar, and discussed at length bilateral relations including measures to strengthen and deepen bilateral economic cooperation. The two ministers also discussed the global political situation including developments in North Africa and the Middle East. Both the ministers underscored the importance of regional connectivity and the role of the Economic Cooperation Organization. The two ministers agreed that the outcome of the 18th Session of the Joint Economic Commission would provide important inputs for Prime Minister Syed Yusuf Rasa‘s visit to Iran from 12-13 September 2011.
