Pakistan, Iran agree on swift finalisation of FTA, cooperation in energy sector

ISLAMABAD: Pakistan and Iran, after reviewing the entire spectrum of their bilateral relations, Wednesday agreed to “expeditiously finalise the Free Trade Agreement (FTA)” between them, cooperate in the energy domain, including trade in electricity, power transmission lines and IP gas pipeline project and expand linkages between Gwadar and Chabahar.

The two sides also highlighted the need to resolve the Kashmir issue through dialogue and peaceful means.

A 28-point joint statement was released by the two capitals at the conclusion of the visit of President of the Islamic Republic of Iran Dr Seyyed Ebrahim Raisi, who was accompanied by a high-level delegation comprising Iranian Foreign Minister Hossein Amir-Abdollahian, as well as other members of the cabinet and senior officials.

Both sides agreed to hold the next sessions of Annual Bilateral Political Consultations (BPC) and Joint Business Trade Committee (JBTC) as well as the 22nd round of the negotiations of the Joint Economic Commission (JEC) in near future.

“They also agreed to facilitate regular exchange of economic and technical experts, as well as delegations from chambers of commerce from both countries to intensify economic cooperation. The declaration of ‘Reemdan border point’ as an international border crossing point under TIR and opening of the remaining two border sustenance markets was also agreed,” according to the joint statement.

Both sides agreed to further expand trade and economic cooperation and affirmed their commitment to transform their common border from ‘border of peace’ to a ‘border of prosperity’ through joint development-oriented economic projects, including setting up of joint border markets, economic free zones and new border openings.

While there was no public mention of the IP gas pipeline project during the visit of the Iranian dignitary, the joint statement reiterated the importance of cooperation in the energy domain, including trade in electricity, power transmission lines and IP gas pipeline project.

The two sides agreed to boost their bilateral trade to US$10 billion over the next five years. Both sides underscored the imperative of a long-term durable economic partnership and collaborative regional economic and connectivity model, particularly for socioeconomic development in Iran’s Sistan-Baluchistan province and Pakistan’s Balochistan province.

The Iranian president did not mention Kashmir directly during his stay here, but together with Pakistan there was mention of developments at regional and global levels, and both sides stressed the importance of peaceful settlement of disputes through dialogue and diplomacy to find mutually acceptable solutions to common challenges.

“Both sides highlighted the need to resolve the issue of Kashmir through dialogue and peaceful means based on the will of the people of that region, and in accordance with international law,” said the joint statement.

There was consensus to fully operationalise barter trade mechanisms between the two sides to facilitate economic and commercial activity, particularly under ongoing collaborative endeavours, such as border sustenance markets, which would contribute towards improvement of the economic situation of local residents and further constitute a step towards enhancing border security.

Both sides emphasized international respect for diversity of social, legal and governance systems. They also emphasised the principles of universality, impartiality, objectivity and non-selectivity, constructive international dialogue and cooperation in the promotion and protection of all human rights and expressed their firm opposition to interference in the internal affairs of countries through any means.

The two sides strongly condemned the attack on the Consular Section of the Iranian Embassy in Damascus, which was an unacceptable violation of the sovereignty of Syria and undermined its stability and security. They agreed that the attack was a violation of international law and the UN Charter and was illegal under the Vienna Convention on Diplomatic Relations of 1961.

Recognising that the irresponsible act of the Israeli regime forces was a major escalation in an already volatile region, both sides called on the UN Security Council to prevent Israel regime from its adventurism in the region and its illegal acts attacking its neighbours and targeting foreign diplomatic facilities. The two sides expressed their agreement to release each other’s prisoners and take measures for their extradition based on the Treaty for the Extradition of Criminals and the Accused between Iran and Pakistan, approved by the two countries in 1960 and the Agreement on the Transfer of Convicts between the two countries approved in 2016.

Developments in Afghanistan, which is the immediate neighbour of both countries, was also discussed. Both sides reaffirmed their commitment to development of Afghanistan as a peaceful, united, sovereign and independent state, free from the threats of terrorism and drug-trafficking.

Noting that the existence of terrorist organisations in Afghanistan poses a serious threat to regional and global security, the two sides reaffirmed their willingness to enhance cooperation on counter-terrorism and security and to develop a united front against terrorism.

The two sides also noted the relevance of coordinating regional and international efforts to ensure security and stability in the region, and emphasised the positive contribution of existing regional forums towards this end. While respecting the sovereignty and territorial integrity of Afghanistan, the two sides recognised that increasing participation of all strata of Afghans in basic decision-making will lead to strengthening of peace and stability in this country.

Both sides expressed their strong and unequivocal condemnation of the ongoing Israeli regime’s aggression and atrocities against the Palestinian people, along with the inhuman blockade of Gaza that has resulted in widespread death and destruction as well as displacement of millions of Palestinians.

While there was no mention of airstrikes both countries conducted on each other’s territories, they condemned terrorism in all its forms and manifestations. Both sides recognised that terrorism posed a common threat to regional peace and stability and presented a major impediment to the development of the region. It was agreed to adopt a collaborative approach to confront this menace and to leverage the existing bilateral institutional mechanisms to effectively combat and counter this threat, while fully upholding the principles of the UN Charter, particularly the principles of sovereignty and territorial integrity of member states. Both sides also acknowledged the key role of enhanced economic and commercial opportunities in improving the security environment in the border areas.

As members of Belt and Road Initiative (BRI) and Economic Cooperation Organisation (ECO), the two countries expressed their firm resolve to enhancing cooperation in connectivity, infrastructure development and energy sectors. The two countries also agreed to expand mutually beneficial and enduring linkages between the sister ports of Gwadar and Chabahar.

PPI adds: President Ebrahim Raisi left for Tehran, along with his delegation, after completing his three-day visit to Pakistan, early on Wednesday.

Sindh Governor Kamran Tessori and Chief Minister Murad Ali Shah saw off the distinguished guest at the Karachi airport.