Pakistan-Iran relations — Audentes Fortuna Iuvat
Recently the cause celebre in international politics has been the entente between Iran and Saudi Arabia, umpired by China. As part of the agreement, both countries will resume full diplomatic relations within two months. These had been severed since 2016.
The portended normality between the two countries presents many opportunities for Pakistan — Iran’s eastern neighbour, Saudi Arabia’s long standing partner, and one of China’s key allies. In the past, tensions between Tehran and Riyadh have posited many challenges for Pakistan. Dominant amongst these has been the exploitation of religious contrarieties by extremist elements, which has fueled the sectarian violence for decades. Time and again, various Pakistani governments have tried to mediate, but these efforts have remained futile.
A lot of analyses have already appeared, discussing the numerous possibilities Islamabad now has; but, in retrospect, for years, Pakistan’s focus on improving its bilateral relations with both Iran and Saudi Arabia, in a sustainable manner, has been lackluster at best. Building on the premise of ‘one cannot change their neighbours’, the focus of this article will be on highlighting improvements in Pakistan-Iran relations.
Iran was the first country to recognise Pakistan in 1947, forming the baseline for future relations. Interests between the two countries converge broadly on a number of issues, including, but not limited to, the situation in Afghanistan, fight against terrorism and bilateral relations with China. Pakistan and Iran share a number of regional and international platforms including Economic Cooperation Organisation (ECO) and the Organisation of Islamic Cooperation (OIC); and Iran’s full membership of the Shanghai Cooperation Organisation (SCO) will enable the two countries to expand their interaction.
The current bilateral trade stands $1.5 billion annually, which is below the potential of $5 billion per year. Earlier in 2023, 39 MoUs were signed which, if implemented, could make this target achievable. In April 2021, 12 border markets were proposed, of which only two, at Pishin-Mand and Rimdan-Gabed, are operational. Currently, Iran exports 34.8MW of electricity to Pakistan and in June 2022, both agreed that Iran would supply an additional 100MW. Both sides are also working together to improve road and rail connectivity. An emblem of success here has been the Islamabad-Tehran-Istanbul (ITI) cargo train service, revived after a 10-year gap in 2022. With regard to the border, Pakistan and Iran have three border crossing points (Taftan-Mirjaveh, Mand-Pishin and Gabd-Rimdan) to ease movement of the approximately 800,000 Pakistani Zaireen who visit Iran every year.
When it comes to challenges, first and foremost, the trust deficit between both countries needs to be addressed. Sanctions are a reality, hence alternatives to circumvent them have to be located. Infrastructure needs to be improved, to help increase barter trade. The issues of high tariffs (from the Iranian side) and the absence of credible payment mechanisms also need to be resolved. Furthermore, Gwadar and Chabahar should work together and build on existing complementarities.
Regarding the border, the Rapid Action Task Force, proposed in 2019, needs to be set up. This will help curb smuggling and human trafficking as well as incidents of border unrest.
Additionally, work should be done towards the completion of the Iran-Pakistan (IP) Pipeline — which Iran has finalised on its side since 2011. The penalty for non-completion will come into effect in 2024. Iran has already extended this twice and Pakistan stands to lose $18 billion if it terminates the agreement.
People-to-people exchanges need to be increased, as well as cooperation in science and technology. For instance, Shiraz is home to Abu-Ali Sina Hospital , which is the world’s first liver transplant centre. Hence, in this respect, interpersonal contacts, particularly in the fields of medicine and technology, should be encouraged.
Instead of depending and waiting on global events to pave opportunities, the Pakistan government should aspire to create their own gateways. After all, Audentes Fortuna Iuvat (nothing venture, nothing win).
Published in The Express Tribune, April 1st, 2023.
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