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)
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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

  • 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.”


One killed in northwestern Pakistan blast targeting religio-political party leader

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One killed in northwestern Pakistan blast targeting religio-political party leader

  • Attack on Maulana Shehzad Wazir of Jamiat Ulema-e-Islam has left him critically injured
  • The JUI leader was on his way to a mosque in Azam Warsak when the explosion took place

PESHAWAR: One person was killed and six others injured in a blast triggered by an improvised explosive device (IED) targeting a senior leader of a prominent religio-political party in South Waziristan district on Sunday, leaving him in critical condition, police said.
The attack on Maulana Shehzad Wazir comes amid complaints from his Jamiat Ulema-e-Islam (JUI) party about being targeted by militants operating in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province.
JUI chief Maulana Fazlur Rehman also voiced concerns over militant threats disrupting the party’s election campaign in the region ahead of the February 8 national polls, citing warnings from law enforcement about dangers to its candidates.
“The IED was planted in a street leading to Maulana Shehzad Wazir’s mosque, who is politically affiliated with the JUI-F,” Bilal Wazir, a police officer in Wana, the headquarters of South Waziristan tribal district, told Arab News over the phone. “Mufti Ijaz Wazir died on the spot while six others, including Maulana Shehzad Wazir, who was apparently the target of the attack, were left in critical condition.”
The officer said a police contingent was dispatched to the area soon after the explosion to gather evidence and shift the wounded to the hospital.
Asked about the intensity of the blast, he said it shook the entire neighborhood of Azam Warsak, a settlement on the outskirts of Wana.
Speaking to Arab News, Mufti Ijaz Shinwari, the JUI senior vice president in the tribal area, condemned the incident, saying the victims of the attack were religious leaders and key figures of his political party on the provincial level.
“This is inhumane,” he added. “This is clearly a terrorist attack and a cowardly act.”
No group has claimed responsibility for the attack, though Tehreek-e-Taliban Pakistan (TTP), a banned militant group, has a history of targeting civilians, security forces and politicians in the region, aiming to perpetuate instability in KP.
In recent months, the TTP has claimed responsibility for several attacks and is suspected by officials in others.
Earlier this week, however, Daesh, a separate militant outfit, shot dead Hameed Sufi, a senior leader of the Jamaat-e-Islami party, in the adjacent Bajaur tribal district.
In June, four people, including Maulana Mirza Jan, the president of JUI’s Wana chapter, were shot by unidentified attackers.
Pakistan claims Afghanistan’s Taliban rulers are providing shelter to TTP fighters across the porous border separating the two countries. However, the Afghan Taliban insists they do not allow anyone to use their soil to launch violent attacks in the neighborhood.
 


Smog drops from hazardous to unhealthy in Pakistan’s Lahore

Updated 17 November 2024
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Smog drops from hazardous to unhealthy in Pakistan’s Lahore

  • The city’s AQI index reached a daily average of 243, still considered ‘very unhealthy’
  • Current pollution level is 10 times higher than what is deemed acceptable by WHO

ISLAMABAD: The air quality in Pakistan’s smog-choked city of Lahore on Sunday fell below the threshold considered “hazardous” for humans for the first time in two weeks.
The AQI index reached a daily average of 243, still “very unhealthy” but below the highest level of 300 considered “hazardous.”
The level of PM2.5 particles was also more than 10 times higher than the level deemed acceptable by the World Health Organization.
The city of 14 million people close to the border with India peaked at a record AQI of 1,110 on November 14.
Punjab, home to more than half of Pakistan’s 240 million people, closed schools in its major cities on November 6, and on Friday extended the closure to November 24.
It has also banned all outdoor sports in schools until January, and cracked down on polluting tuk-tuks, barbecues and construction sites in pollution hot spots across Lahore.
Seasonal crop burn-off by farmers on the outskirts of the city also contributes to toxic air the WHO says can cause strokes, heart disease, lung cancer and respiratory diseases.


Pakistan’s finance chief says PM Sharif will soon unveil ‘home-grown’ economic agenda

Updated 17 November 2024
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Pakistan’s finance chief says PM Sharif will soon unveil ‘home-grown’ economic agenda

  • Muhammad Aurangzeb calls the recent IMF visit part of ongoing talks, enhancing mutual trust
  • The visit came weeks after the $7 billion loan approval, making observers think it was unusual

ISLAMABAD: Prime Minister Shehbaz Sharif will soon unveil a “home-grown agenda” for economic development, Finance Minister Muhammad Aurangzeb said on Sunday, as he informed that his interaction with a visiting International Monetary Fund (IMF) delegation last week went well, providing both sides an opportunity to enhance mutual trust.
The IMF delegation, led by Pakistan mission chief Nathan Porter, completed a five-day trip to the country during which it held wide-ranging conversations with the government.
The international lending organization approved a $7 billion loan for Pakistan in September, though it explicitly stated that the delegation’s visit was not part of the first review of the loan program, which is scheduled for the first quarter of 2025.
The IMF visit, which came just weeks after the loan’s approval, surprised observers who considered it unusual, though the finance minister described it as part of an ongoing dialogue between the two sides, noting that it resulted in a positive IMF statement.
Aurangzeb also said the government would specify its overall economic game plan in the next few days.
“The prime minister will soon share a home-grown agenda about how we are going to take forward our overall economic roadmap,” he said, without disclosing its details. “It has been very well syndicated with all the stakeholders.”
The minister emphasized that dealings between Pakistan and the IMF were completely transparent, with all agreed details available in the public domain. He noted the recent discussions with the IMF covered taxation and energy reforms, along with the privatization plan for state-owned enterprises and public finances.
“I welcomed this visit because this is an ongoing dialogue to ensure mutual credibility and trust,” he added. “We have shared our roadmap with them and explained how we are taking things forward.”
The finance minister said the two sides would continue to hold virtual talks, though he noted that he appreciated every opportunity to meet IMF officials face-to-face.
He also mentioned that discussions with the international lender included climate resilience and decarbonization, emphasizing that these issues had to be addressed alongside broader economic challenges rather than sequentially.
Pakistan has faced a prolonged economic crisis marked by rapid currency devaluation and dwindling foreign exchange reserves, which forced it to seek external financial assistance from friendly nations and global financial institutions.
The country has seen an improvement in its macroeconomic indicators in recent months, though it has yet to fully recover from its financial difficulties.
Reflecting on his visit to Washington for the World Bank and IMF meetings earlier this year, Aurangzeb described the discussions as productive.
“They gave us a platform to share with the comity of nations about how we turned the economy around in 14 months,” he said. “We also got an important message, which is that there is no room for complacency and we must stay the course [of stringent economic reforms].”
 


Pakistan’s IT minister calls for bridging gender digital divide in address to Qatar conference

Updated 17 November 2024
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Pakistan’s IT minister calls for bridging gender digital divide in address to Qatar conference

  • Shaza Fatima says access to technology and Internet is important to ensure women empowerment
  • She says women will overcome social hurdles, join mainstream politics after greater digital access

ISLAMABAD: Pakistan’s State Minister for Information Technology Shaza Fatima on Sunday called for closing the gender divide in the digital world, emphasizing that women could be empowered by providing access to modern technology and Internet connectivity.
She made the remarks while virtually addressing a conference in Qatar focused on “Digitalization and Women in Politics.”
“In the modern era, it is essential for women to have access to technology and the Internet,” Fatima said during the event, according to an official statement. “Women can be empowered through the provision of digital devices and Internet access.”
The minister said the Pakistani government was taking active steps to eliminate the barriers women face in accessing mobile phones and information and communication technology.
“We are working on a Gender Digital Divide Policy to ensure women’s access to the digital economy,” she informed. “The Prime Minister’s Free Laptop Scheme plays a significant role in providing access to digital tools.”
The minister also highlighted ongoing efforts to develop a “smartphone for all” policy, underscoring how such initiatives could help women overcome social and economic challenges in entering politics.
“Women face social and economic hurdles in entering politics,” she noted. “Through digitalization, women can be empowered and brought into mainstream politics.”
The event underscored growing interactions between Pakistan and Qatar in the technology sector.
Islamabad has stepped up efforts to forge technological collaborations with Doha, sending its first IT delegation to Qatar last December to attract investment and explore opportunities for Pakistani software houses and freelance developers.
Qatar, like much of the Gulf region, is diversifying its economy with a strong focus on technology. From smart city initiatives to tech start-ups and events like the FIFA World Cup 2022, the country is rapidly advancing its technological capabilities.
Pakistan’s top officials have underscored the potential for bilateral collaboration in tech-related areas, with Prime Minister Shehbaz Sharif inviting Qatari investors to explore opportunities in various economic sectors during his visit to the Arab state last month.
 


Karachi gears up for premier defense expo next week amid heightened security measures

Updated 17 November 2024
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Karachi gears up for premier defense expo next week amid heightened security measures

  • Launched in 2000, IDEAS has become a key biennial event for the international defense industry
  • The event will host over 550 exhibitors, including 340 global defense companies, from 55 countries

KARACHI: A senior government official in Pakistan’s southern Sindh province said on Sunday extraordinary security measures have been implemented for the country’s premier defense exhibition, which is scheduled to commence in Karachi next week.
The International Defense Exhibition and Seminar (IDEAS), held biennially since its inception under General (r) Pervez Musharraf’s administration in 2000, has grown into a key event for the defense sector.
This year’s exhibition, running from Tuesday to Friday, will host over 550 exhibitors, including 340 international defense companies, alongside more than 350 senior civil and military officials from 55 countries.
Sindh’s Home Minister, Zia-ul-Hassan Lanjar, told Arab News that police, Rangers and other law enforcement agencies are working in coordination to enforce heightened security measures in connection with the event.
“The police, Rangers, and other law enforcement agencies are united and alert on one platform to implement extraordinary security measures,” he said.
Karachi has faced significant security challenges, including a suicide bombing near Jinnah International Airport last month that killed two Chinese engineers and injured several others. The city also grapples with high street crime rates, with over 90,000 incidents reported in 2023, causing considerable hardship for residents.
Additionally, Karachi’s traffic conditions are notoriously poor, especially during rush hours, and are exacerbated by rain or high-profile events, leading to severe congestion and delays.
The provincial minister added that Karachi’s traffic police would ensure smooth movement for both domestic and international visitors by publicizing alternative routes and addressing traffic-related concerns.
To bolster security, local authorities have already fortified the Expo Center, the venue for the exhibition, with multiple layers of containers.
A day earlier, Brig. Ali Adil, Director of Coordination for IDEAS 2024, outlined the event’s diverse activities during a news conference, which include live demonstrations of cutting-edge defense technology, an international seminar and the IDEAS Tri-Services Karachi Show.
The event will also offer opportunities for networking through business-to-business and business-to-government engagements.
“IDEAS 2024 will bring together representatives of defense industries from around the world to showcase their latest technological innovations, while Pakistan’s defense sector, including both public and private companies, will present products of international standards,” Brig. Adil said.
This year’s event will feature a new “Startups Pavilion” designed to offer international exposure to young Pakistani entrepreneurs, who will display innovative projects and technologies, he said.
Commodore Aitazaz Khalid, Director of Media for IDEAS, confirmed that Prime Minister Shehbaz Sharif will inaugurate the exhibition on Tuesday.
An international seminar on “Pakistan Defense Production Potential – Challenges, Opportunities, and Way Forward” will be held on the third day of the event, with presentations from leading national and international experts.
General Sahir Shamshad Mirza, Chairman of the Joint Chiefs of Staff Committee, will be the chief guest for the seminar.
For the visiting dignitaries and Karachi residents, the Tri-Services Karachi Show will be held at Nishan-e-Pakistan, located on the city’s seafront.
Deputy Inspector General of Traffic Police Iqbal Dara also briefed the media on the traffic management plan and alternative routes to ensure smooth access for attendees and ease congestion during peak hours.
He said IDEAS 2024 would set new records, surpassing previous milestones in terms of the exhibition space, number of exhibitors and international participants.