ISLAMABAD:  Iranian foreign minister Seyed Abbas Araghchi arrived in Pakistan’s capital on Tuesday for a two-day official visit to discuss a range of issues, including tensions in the Middle East, saying at a press conference that Tehran reserved the right to a “legitimate defense” against Israeli aggressions though it did not seek escalation.

Araghchi was addressing a joint media briefing with Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar in which he spoke about Israel’s “crimes and acts of genocide” in Gaza, its ongoing attacks in Lebanon and its assault on Iran on Oct. 26. 

Iran’s supreme leader on Saturday threatened Israel and the US with “a crushing response” over attacks on Iran and its allies. Any further attacks from either side could engulf the wider Middle East, already teetering over Israel’s assault of the Gaza Strip and its ground invasion of Lebanon, into a wider regional conflict as the US goes into a presidential election today, Tuesday.

“Unlike the Israeli regime, the Islamic Republic of Iran does not seek escalation,” Araghchi told reporters. “However, we reserve our inherent right to legitimate defense under Article 51 of the United Nations Charter and we would certainly respond to the Israeli aggression in a proper time and in a proper manner.”

Since the deadliest attack by Hamas in its history on Oct. 7, 2023, Israel has carried out air and ground strikes in Gaza in which over 42,000 people have been killed. Since late September, it has also 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 but ties have been frosty over a range of issues, including cross-border militancy. 

During Tuesday’s press conference, the Iranian foreign minister appreciated Pakistan’s stance in condemning Israeli aggression against Iran. 

“We [Muslim nations] are working toward a solution to stop these atrocities and to alleviate the suffering of the people of Gaza and Lebanon at the upcoming OIC meeting, especially as winter approaches, which will only intensify the hardships of the homeless and refugees in Gaza and Lebanon,” Araghchi added. 

Saudi Arabia will also host a joint Arab-Islamic summit on Nov. 11 to address Israeli assaults in the Palestinian territories and Lebanon.

PAK-IRAN TIES

Speaking about bilateral relations, Araghchi reiterated Iran’s commitment to the promotion of ties with Pakistan in all areas, including economic, political, academic, cultural, and tourism.

“The objective of this round of consultation is the promotion of the all-out relations between Iran and Pakistan with a new focus on the bilateral relations, particularly in the areas of trade and economy,” he added.

Speaking at the media briefing, Pakistani FM Dar said during his meetings with Araghchi, he had emphasized the need for an “urgent” ceasefire, de-escalation, and dialogue aimed at realizing the Palestinian people’s right to self-determination.

“We also resolved that in the upcoming joint Islamic summit in Jeddah, which has been scheduled for the 11th of November, we would pool our efforts in order to make sure that we come up with a joint approach to the issues for which this joint summit has been called,” Dar said. 

Dar said both sides had also discussed ways to enhance cooperation across several key areas, including trade, energy, and border security. 

“We agreed to intensify collaboration on border management and address shared challenges as we underscored that terrorism and extremism pose a serious threat to the regional peace and pledged to coordinate our joint efforts to eradicate these challenges,” he added.

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 due to funding challenges and threats of US sanctions over doing business with Tehran. 

Iran has completed the pipeline’s construction on its side of the border while Pakistan is seeking a US waiver to go ahead with building the project. Pakistan has also hired two prominent US law firms, Willkie Farr & Gallagher and White & Case, to defend its position in an international arbitration case initiated by Tehran over the stalled gas pipeline project, the attorney general confirmed to Arab News on Monday.

Pakistan and Iran are also often at odds over instability on their shared, porous frontier, with both countries routinely trading blame for not doing enough against militants who carry out cross-border attacks. 

Tensions surged in January when Pakistan and Iran exchanged airstrikes, both claiming to target alleged militant hideouts in each other’s countries. 

ISLAMABAD: Pakistan’s foreign investment has surged by 48 percent during the first quarter of the current fiscal year, state-run media reported on Tuesday, with Saudi Arabia and the United Arab Emirates (UAE) contributing $26.8 million during the same period.

Pakistan formed the Special Investment Facilitation Council (SIFC), a hybrid civil and military body, in 2023 to fast-track decisions related to foreign investment in its key economic sectors such as agriculture, mining, minerals, tourism and others. The development took place as Pakistan grappled with a prolonged economic crisis that almost led the country to suffer a sovereign default before a critical $3 billion bailout by the International Monetary Fund (IMF) last year averted the crisis.

As per a breakdown shared by state broadcaster Radio Pakistan, China invested $404 million during the first quarter of the current fiscal year while Saudi Arabia’s investment was recorded at $ 1.8 million. The UAE, meanwhile, invested $25 million, Hong Kong $98 million, the United Kingdom $72 million and the United States $28 million in the same period, the state broadcaster said.

“A significant increase of forty eight percent has been seen in foreign investment in Pakistan in the first quarter of current fiscal year, reflecting the effective strategies of the Special Investment Facilitation Council,” Radio Pakistan said.

Pakistan’s Prime Minister Shehbaz Sharif visited Saudi Arabia and Qatar last week, where he held talks with the leadership of the two countries on enhancing cooperation in trade, investment and energy. Pakistani and Saudi businesses had signed 27 agreements and memorandums of understanding (MoUs) worth $2.2 billion in October. During Sharif’s visit to the kingdom last week, the two countries agreed to enhance that figure to $2.8 billion.

Meanwhile, the UAE is Pakistan’s third-largest trading partner after China and the United States. It is also an ideal export destination for the South Asian nation as the short distance between the two countries limits transportation costs and facilitates commercial exchanges.

Sharif has actively pursued economic diplomacy in the region in recent months, seeking more investments and enhancing trade and regional connectivity for Pakistan. The South Asian country has sought to leverage its position as a transit and trade hub connecting landlocked Central Asian countries with the rest of the world and also pushed for mutually beneficial economic partnerships with Gulf countries.