ISLAMABAD: Iran’s Foreign Minister Seyed Abbas Araghchi has arrived in Islamabad on a two-day official visit to hold consultations with the Pakistani leadership on the evolving Middle East situation and discuss bilateral ties with Pakistan, state-run media reported on Tuesday. 

Araghchi was welcomed by Pakistan’s Additional Foreign Secretary (Afghanistan and West Asia) Ambassador Ahmed Naseem Warraich upon his arrival in Islamabad, a foreign office press release said. 

Araghchi’s Islamabad visit takes place after last month’s escalation in hostilities between Iran and Israel, with both countries firing missiles at each other. Israel carried out strikes against Iran on Oct. 26, saying it was responding to missile attacks conducted by Tehran earlier in the month.

Since the deadliest attack in its history on Oct. 7, 2023, Israel has been fighting Hamas in Gaza and since late September, it has been at war with Hezbollah in Lebanon. Both Hezbollah and Hamas are allies of Iran. Pakistan, a major ally of Saudi Arabia, shares a long border with Iran.

“Iranian Foreign Minister Seyed Abbas Araghchi arrived here late Monday night on a two-day official visit to hold consultations with Pakistan’s leadership on the situation in the Middle East and bilateral relations,” state-run Associated Press of Pakistan (APP) reported. 

The APP said Araghchi will meet Prime Minister Shehbaz Sharif and Deputy Prime Minister and Foreign Minister Ishaq Dar during his two-day visit. 

“This visit provides an important opportunity to advance cooperation and dialogue between Pakistan and Iran on a wide range of areas including trade, energy and security,” APP said. 
Pakistan and Iran have had a rocky relationship despite several commercial pacts between the two countries on trade, energy and security. Both countries signed the $7 billion Iran-Pakistan gas pipeline project agreement in 2004 but 20 years on, the project remains incomplete. Tehran has completed the pipeline’s construction on its side of the border while Pakistan is seeking a US waiver to go ahead with it due to international sanctions targeting Tehran. 
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. Late Iranian president Ebrahim Raisi visited Pakistan in April on a three-day visit aimed at strengthening bilateral relations and easing tensions. The two sides also signed memorandums of understanding in the fields of trade, science technology, agriculture, health, culture, and judicial matters. 

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif has welcomed the central bank’s decision to cut the policy rate by 250 basis points, saying the move would help boost the country’s business activities and enhance employment opportunities, state-run media reported on Tuesday.

Pakistan’s central bank slashed its key policy rate by 250 basis points to 15 percent on Monday for a fourth straight reduction since June. The development takes place as Islamabad attempts to revive a sluggish, fragile $350 billion economy as inflation eases. 

Monday’s move follows cuts of 150 bps in June, 100 bps in July, and 200 in September that have taken the rate from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 700 bps in under five months.

“Prime Minister Shehbaz Sharif says the reduction in policy rate will enhance business activities, exports and employment opportunities in the country,” state broadcaster Radio Pakistan reported. 

Sharif was chairing a meeting of the ruling Pakistan Muslim League-Nawaz’s (PML-N) parliamentary party on Monday when he touched upon the central bank’s move. The premier noted that inflation has reduced from an alarming 38 percent in May 2023 to 7 percent at present.

The Pakistani premier informed members of the PML-N parliamentary party about his visit to Saudi Arabia and Qatar last week, saying that “a new chapter” has been added to the Pakistan-Saudi investment partnership. 

“The Saudi leadership assured all kinds of support for the stability and development of Pakistan’s economy,” Sharif said according to the state broadcaster. 

The Pakistani prime minister also informed the lawmakers about his visit to Qatar, saying that the Qatari leadership also assured an increase in investment for Pakistan. He said talks were held between both sides on giving “a practical shape” to projects worth $3 billion in Pakistan. 

“He said Qatar will invest in various sectors including aviation, hoteling, information technology and energy sectors in Pakistan,” the state broadcaster said. “Shehbaz Sharif said the government is taking steps on a priority basis to facilitate investment and increase foreign investment in Pakistan.”