On April 3, 2019, Pakistan and Iran signed an agreement on strengthening their trade and economic ties. The historic agreement was signed during the visit of Iranian Foreign Minister Mohammad Javad Zarif to Pakistan. The agreement is aimed at enhancing economic cooperation between the two countries, particularly in the areas of trade, investment, energy, and border security.
The agreement is significant as Pakistan and Iran are neighboring countries with a long history of cooperation and shared interests. Both countries are members of the Economic Cooperation Organization (ECO) and have the potential to increase their bilateral trade.
Under the agreement, both countries will establish a Joint Border Trade Committee (JBTC) to promote and regulate trade along their common border. The committee will be tasked with identifying and resolving issues related to cross-border trade, including customs clearance, transportation, and facilitation of goods.
The agreement also provides for the setting up of a Joint Investment Company (JIC) to encourage investment in various sectors of the economy. The JIC will facilitate the exchange of investment opportunities and information between the two countries and help attract foreign investors.
In addition, the agreement includes provisions for cooperation in the energy sector. Both countries have significant energy resources, such as natural gas and oil, and the agreement aims to enhance cooperation in the energy sector and increase energy trade.
The agreement is expected to have positive implications for the economy of both countries. Pakistan is currently facing a balance of payments crisis and is in need of foreign investment and trade. Iran, on the other hand, is facing economic sanctions imposed by the United States, which have disrupted its economy.
In conclusion, the signing of the agreement between Pakistan and Iran marks a new chapter in their relationship and reinforces their commitment to strengthening their trade and economic ties. The agreement is aimed at boosting bilateral trade, investment, and cooperation in the energy sector, which will have positive implications for the economy of both countries.