Pakistan, Iran agree to increase bilateral trade to $10 billion, sign eight MoUs

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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.”


Pakistan among top countries for crypto adoption with 20 million users — adviser 

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Pakistan among top countries for crypto adoption with 20 million users — adviser 

  • Pakistan Crypto Council set up this year to set regulatory guidelines for adoption, lure foreign investment 
  • Cryptocurrencies including bitcoin are not officially regulated in Pakistan but are not illegal or banned

ISLAMABAD: Pakistan is among the top countries in the world for crypto adoption, with around 20 million users, Pakistan Crypto Council (PCC) Chief Executive Officer Bilal Bin Saqib said on Friday.

The PCC, established by the government earlier this month, aims to create a legal framework for cryptocurrency trading in a bid to lure international investment. Cryptocurrencies including bitcoin are not officially regulated in Pakistan but are also not illegal or banned. As of Jan. 16, 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.

“Around 20 million crypto users are in Pakistan,” Saqib said during a talk show on Geo News. “We are coming on number three and four globally and there are many blockchain technology opportunities in Pakistan.”

Explaining the role of the PCC, Saqib said it would create a regulatory framework for crypto-related activities in Pakistan, including exchanges and licensing, and ensure a secure environment to protect Pakistanis from potential losses.

“Globally 0.24 percent cryptocurrency transactions are used for wrong things,” he said. “We want to use this technology for other things like real estate, agriculture and to unlock their liquidity.”

Saqib refrained from providing a timeline for when crypto would be legalized in Pakistan.

Speaking to Bloomberg earlier this month, Bilal, recognized by Forbes as a Web3 investor and blockchain strategist, highlighted that Pakistan offered one of the lowest operating costs for crypto businesses, making it a more cost-effective alternative to hubs like Dubai and Singapore. 

He said regulatory sandboxes were being developed to create fast-track systems for crypto startups, enabling them to operate within a controlled and compliant environment.

Pakistan is also engaging with the UAE to learn from its regulatory model and is working closely with Nigeria and Turkiye on policy development, he told Bloomberg. 

Regarding taxation, Bilal has said the government intended to implement a “balanced pro-growth tax structure” to encourage foreign investment in the sector.

He emphasized that cryptocurrency could significantly boost Pakistan’s fintech sector, positioning the country as a regional leader in digital finance. 


At cafe in Lahore’s Walled City, curated iftar gatherings surrounded by memories of Pakistan’s finest artist 

Updated 38 min 34 sec ago
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At cafe in Lahore’s Walled City, curated iftar gatherings surrounded by memories of Pakistan’s finest artist 

  • Bethak Sadequain aims to revive the bethak, a traditional gathering space typical of many Mughal-era mansions 
  • The cafe is named after Sadequain, one of the most influential and important South Asian artists of the 20th century

LAHORE: Set within the crumbling walls and narrow, meandering streets of Lahore’s old, Walled City is Bethak Sadequain.

Opened in February, the cafe is named after Syed Ahmed Sadequain Naqvi (1930-1987), known by the mononym Sadequain, one of the finest painters and calligraphers Pakistan has ever produced and among the most influential and important South Asian artists of the 20th century. Apart from paying homage to Sadequain, the space also aims to revive the spirit of the bethak — a traditional gathering space centered on conversation and connection. The venue, launched last month, has been drawing steady crowds this Ramadan with its curated iftar gatherings blending traditional cuisine and live music and presenting a glimpse into the history of a graceful and cultured city that stretches by some accounts back into the days of the epic Ramayana. 

The photo taken on March 25, 2025, shows Pakistani artist Syed Ahmed Sadequain Naqvi's paintings displayed at a cafe named after him in Lahore's Walled City. (AN Photo)

Situated on Gali Surjan Singh, a compact but architecturally rich lane in the Delhi Gate area, Bethak Sadequain outsources its food due to limited space but focuses on delivering an immersive cultural experience through live performances, an old-city charm and a communal atmosphere. The aim is to create a true bethak, which was a typical feature of many Mughal-era havelis, palaces and mansions in the Indian Subcontinent.

“Iftar is an excuse to get together, a communal experience. A lot of families come together, a lot of colleagues and friends get together, so our restaurant is a good place, close to heritage, close to tradition,” the restaurant’s manager Bilal Sabir told Arab News. 

“The guests who come here [for iftar], we tell them a little of our history of the Walled City, we entertain them, we give them guidelines on music, we play for them our traditional Pakistani classical music too.”

Sabir described the business venture as an effort “to keep Sadequain’s name alive” as the extraordinary painter and calligrapher’s work had not been given the due attention in Pakistan.

Visitors enjoy a curated iftar at Bethak Sadequain cafe in Lahore's Walled City on March 25, 2025. (AN Photo)

“We saw that in Lahore there is no activity related to Sadequain,” he said. “There is a Sadequain gallery, but it’s in Karachi, not in Lahore. So we wanted to promote this thing, to announce and introduce Sadequain to Lahore, so this is just a little effort.”

“INTRODUCING SADEQUAIN:”

While the iftar menu also provides an authentic Walled City experience — stuffed dates, samosas, signature tea, spiced biryani rice and shahi haleem stews — the success of the restaurant this Ramadan is still largely due to its ambiance and classical vibe.

Before iftar earlier one evening this week, Sabir sat on the floor and played the flute, a traditional wooden wind instrument, surrounded by Sadequain’s works, and interacted with the audience, sometimes asking them to guess the tune and also encouraging people to sing along. 

Zeeshan Zia Raja, the restaurant’s owner, said she opened it as she wanted to do something meaningful during her retirement as well as create a space in the Walled City where women could sit comfortably and safely for hours.

Raja, also the owner of the American Lycetuff School System, represents the Sadequain Foundation USA.

“The new generation is missing a lot, many important things in their lives,” she said. “So, I thought we should introduce Sadequain. We, as a nation, have not done justice to him by recognizing his efforts for Pakistan and what he did for us.”

Sadequain, born in Amroha in 1930 to an educated North Indian Shia family in which calligraphy was a highly valued skill, rose to fame in 1955, when he exhibited a number of works at the residence of Prime Minister Huseyn Shaheed Suhrawardy, a liberal patron of the arts. 

The photo taken on March 25, 2025, shows Pakistani artist Syed Ahmed Sadequain Naqvi's pictures displayed at a cafe named after him in Lahore's Walled City. (AN Photo)

Soon afterwards, Sadequain received a number of important governmental commissions for municipal murals, and held numerous solo exhibitions of his work. It was around this time that the influence of Picasso began to appear strongly in Sadequain’s paintings and sketches, according to his biography on the website of the Grosvenor Gallery in the UK where some of his works are displayed. 

Sadequain won the Pakistan National prize for Painting in 1960, and left for Paris later that year at the invitation of the French Committee of the International Association of Plastic Arts. 

“The following few years were to be some of the most important for the young artist in terms of his artistic development, and it was whilst in Paris that he began to achieve international critical acclaim,” the gallery wrote. 

In September 1961 he was the laureate winner of the Paris Biennial’s ‘Artist under 35’ category, and was awarded a scholarship which allowed him to remain in Paris, and helped catapult him into the spotlight. During the early 1960s he traveled to Pakistan as well as throughout Europe and to the USA, and held numerous solo-exhibitions, including at the Commonwealth Institute Galleries and New Vision Center, London, and at Galerie Presbourg and Galerie Lambert in Paris.

In 1964 he was awarded the commission to illustrate a new edition of Albert Camus’ novel L’Etranger, published in 1966 by Les Bibliopholes de L’Automobile Club de France. 

Sadequain returned to Pakistan in 1967 following his father’s ill health during a visit to France. His output for the next few years was prolific and in the early 1970s he published a huge volume of poetry. It was also during this period that he concerned himself mainly with calligraphy, as well as with state funded murals, including those at Mangla dam, The State Bank of Pakistan, and the ceiling of Frere Hall, Karachi.

Mukarram Zia Raja, who is Bethak Sadequain’s co-founder, recounted the history of Sadequain’s life and work and told Arab News the plan was always to make the venue all about the artist, as well as about art and music in general. 

An entire floor of the restaurant is dedicated to Sadequain. With the blessings of the Sadequain Foundation, dozens of memorabilia from his life and work — official prints and private photos — are on display to make young people more curious and encouraged them to learn about the great artist. 

“My mother grew up hearing about all these bethaks in the Walled City, lost to time, and she wanted to bring them back,” he said. “But when we got this place, it had just been a warehouse of dry food inventory for the past 60 years. So, she wanted to do something of cultural significance with it too.”

But in Ramadan, serving a good iftar was also key. 

“Food culture and Lahori culture is so ingrained together that you can’t run a successful business if you are not doing good iftars during Ramadan,” Mukarram said.

“But we did not want to do a random cash grab for Ramadan, so even all the decor we did was very traditional … Even the choice of music was not random, curated to feature sufi kalaams and naats [spiritual poetry and devotional songs], given that it is Ramadan.”


IMF says Pakistan can cut power tariff by one rupee per unit to benefit ‘all consumers’

Updated 28 March 2025
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IMF says Pakistan can cut power tariff by one rupee per unit to benefit ‘all consumers’

  • IMF’s resident Pakistan representative, Mahir Binici, confirms power tariff reduction to Arab News
  • Binici said authorities can use revenues from captive power plants to cut prices by Rs1 per kilowatt

KARACHI: The International Monetary Fund (IMF) has allowed Pakistan to slash power tariffs by one rupee per kilowatt to provide relief to inflation-hit consumers, the IMF’s resident representative in Pakistan confirmed to Arab News on Friday. 

Pakistan can bring down the prices of electricity by using revenue from a Rs791 per unit grid levy the government recently imposed on the usage of gas by captive power plants for in-house power generation, Mahir Binici, the IMF’s resident representative, said. Captive power plants, also known as autoproducers or embedded generation, are electricity generation facilities owned and operated by an industrial or commercial entity solely for their own energy consumption, providing a localized power source.

“The price reduction would benefit all consumers,” Binici said.

Analysts see a modest impact of the one rupee relief over the promised Rs8 per unit cut.

“The benefit is modest, around Rs 200 per month, for the average domestic consumer,” said Muhammad Waqas Ghani, head of research at JS Global Capital Ltd. from Karachi. 

Financing the cut through a levy on captive power plants would naturally provide a short-term relief, he said. 

“For the government to provide any meaningful relief, it would have to work to address the underlying structural issues in Pakistan’s energy sector,” Ghani said.

The confirmation of the power tariff reduction comes days after IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the ongoing 37-month bailout program, the IMF said on Tuesday. Pending board approval, Pakistan can unlock the $1.3 billion under a new climate resilience loan program spanning 28 months. It will also free $1 billion for the South Asian nation under its ongoing $7 billion bailout program, which would bring those disbursements to $2 billion.

The IMF’s board of governors will meet in May and approve its next tranche for Pakistan, Prime Minister Shehbaz Sharif’s office said in a statement on Thursday.

The IMF’s nod for a reduction in Pakistan’s power tariffs is just one component of a larger package Sharif will be announcing after Eid, Zafar Yab Khan, a spokesperson at Pakistan’s power division, told Arab News.

“This should not be misunderstood as the only relief that is being considered by the government,” Khan said.

Under a special relief package, Sharif was expected to announce a reduction in the prices of electricity by as much as Rs8 per unit to provide some relief to Pakistanis who have had to face inflated energy and food prices in the last two years. Pakistan’s inflation peaked at 38% in May 2023 before gradually easing to 1.5% in February this year, the lowest in nearly a decade. The government expects it to remain within 1–3% in the coming months.

The debt-ridden country had to make its electricity costly by withdrawing fuel subsidies and increasing energy prices in compliance with conditions set by the IMF under a $3 billion loan that averted a sovereign debt default in 2023 but fueled record-high inflation and triggered protests in many parts of the country. 
 


Pakistan restores train services from Quetta after deadly hijacking

Updated 28 March 2025
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Pakistan restores train services from Quetta after deadly hijacking

  • 31 soldiers, staff and civilians killed as BLA separatists hijacked Jaffar Express train in Balochistan earlier this month
  • BLA is largest and strongest of several ethnic Baloch groups fighting for decades to win independence for Balochistan

QUETTA: Train operations from the Quetta Railway Station were restored on Friday, over two weeks after they were suspended following a deadly hijacking by militants in which 31 soldiers, staff and civilians were killed in the southwestern Balochistan province.

The separatist Baloch Liberation Army claimed responsibility for the Mar. 11 attack on the Quetta-Peshawar Jaffar Express, during which they blew up train tracks and held passengers hostage in a day-long standoff with security services in a remote mountain pass.

MP Jamal Shah Kakar and Divisional Superintendent Pakistan Railways Imran Hayat inaugurated the train service in a televised ceremony. The train departed with 400 passengers from Quetta for Peshawar in the northwestern Khyber Pakhtunkhwa province under strict security measures. 

The Jaffar Express had started services yesterday, Thursday.

“Although we don’t have enough strength of Railway Police Forces, many stations require fencing and other security equipment,” Railways Minister Hanif Abbasi told reporters earlier this week, admitting that railways facilities in the province faced security challenges. 

“We are recruiting 500 soldiers in the Pakistan Railway Police and 70 percent of the recruitment would be for Balochistan,” the minister added. “We have planned new security strategies with the frontier corps and other law enforcing agencies.” 

He also announced a special Eid train from Quetta Railway station with fool-proof security for passengers. 

“We are very much optimistic about better security to the railway’s passengers in Balochistan,” Abbasi said.

“We have repaired all damaged carriages of the attacked Jaffar Express, and new rack of carriages would be included in the train operations from Balochistan.” 

The BLA is the largest and strongest of several ethnic Baloch insurgent groups which have been fighting for decades to win independence for the mineral-rich province, home to major China-led projects including a port and gold and copper mines.


Pakistani charities report modest recovery in Ramadan despite easing inflation

Updated 28 March 2025
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Pakistani charities report modest recovery in Ramadan despite easing inflation

  • Alamgir Welfare Trust expects up to 10 percent increase in donations as it aims to expand services
  • Pakistan’s largest charity Edhi Foundation says donations have only marginally improved

KARACHI: Two main charities in Pakistan’s largest city of Karachi have reported a modest recovery in the collection of donations this Ramadan despite easing inflation, top officials at the organizations said this week, as the annual inflation rate slowed to 1.5 percent in February, the lowest in nearly a decade. 

Major welfare organizations such as the Edhi Foundation, Pakistan’s largest charity known for its extensive network of ambulances and shelters, and the Alamgir Welfare Trust (AWT), another main social welfare body, said they expected either stable or slightly higher contributions this year compared to the last two years when high inflation rates had curtailed donations. 

Pakistan’s inflation peaked at 38 percent in May 2023 before gradually easing, with the government expecting it to remain within 1–3 percent in the coming months.

Every year, Edhi and AWT collectively gather and spend as much as Rs4 billion ($14.4 million) on initiatives like sheltering orphans, burying unclaimed dead bodies and providing free food, health and education facilities to thousands of vulnerable families across Pakistan.

“This year we will hopefully see 10 percent extra donations toward our annual budget of Rs3 billion,” Chohdry Nisar Ahmed, the chairman of AWT, told Arab News.

Headquartered in the Bahadurabad neighborhood of Karachi, the organization operates on a daily budget of around Rs10 million ($36,000). 

Ahmed said inflation had adversely affected the charity’s work in recent years, though the situation was now beginning to improve.

“Earlier, the effect of inflation was significant. Now that impact has reduced a bit,” he said “But as the gold price has increased now, so people are bound to pay more Zakat. We did experience a little up and down in donations but not much.”

Zakat is a mandatory form of almsgiving in Islam, calculated as a percentage of one’s wealth, including gold holdings. This means the higher the price of gold, the greater the amount eligible individuals are required to pay.

The AWT chief said he wanted to expand his network of services by constructing a 14-story building in Karachi, the commercial capital of Pakistan. To start the construction work on acquired land, he said, AWT needed at least Rs1.5 billion ($5.4 million). The organization also wants to enroll at least 50,000 children in schools in addition to the 40,000 it is already educating.

The chairman of the Edhi Foundation, which runs the world’s largest volunteer ambulance service, also reported a modest hike in donations this year.

“Charity in the first twenty days of Ramadan is almost the same as compared to last year,” Faisal Edhi told Arab News. “The increase [this year] is very little, not much. We cannot call it a substantial increase.”

Edhi Foundation is preparing to expand its 2,000-vehicle ambulance fleet amid growing demand for emergency response services across Pakistan. It already runs a shelter home that houses 5,000 homeless people, including women and children.

“Our annual budget ranges from Rs3-4 billion that we cover from donations,” Edhi said, adding that a part of the donations came from the Pakistani community living in Britain and the United States, but most came from Pakistani donors belonging to the middle or working classes.

“Seeing the inflation, it seems like the [total] charity will be same as last year and our last year was not very promising either,” Edhi said. “The group that gives us charity, they belong to middle and lower-middle classes or the working class and the working class has been affected the most [by inflation] at the moment.”