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.”


Pakistani forces kill 6 militants in volatile northwest near Afghanistan— army

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Pakistani forces kill 6 militants in volatile northwest near Afghanistan— army

  • Pakistani security forces carry out twin raids in Dera Ismail Khan, North Waziristan districts
  • Such operations are often conducted against Pakistani Taliban or Tehreek-e-Taliban Pakistan group

PESHAWAR, Pakistan: Pakistani security forces killed six militants in twin raids Wednesday targeting their hideouts in the country’s volatile northwest region bordering Afghanistan, the military said.

Five militants were killed in the first raid in Dera Ismail Khan district in Khyber Pakhtunkhwa province, the military said in a statement. It did not provide further details about the slain insurgents, and only said the men were behind various previous attacks on the security forces.

Another militant was killed in the second raid in a former stronghold of the Pakistani Taliban in the North Waziristan district in the northwest.

The statement did not provide any further details about the identity of the slain men.

Such operations often target the Pakistani Taliban, which has been emboldened by the Taliban takeover of Afghanistan in 2021. Known as the Tehreek-e-Taliban Pakistan or TTP, it is a separate group but a close ally of the Afghan Taliban.


Pakistan hikes electricity prices by Rs2.83 per unit citing fuel cost adjustment

Updated 46 min 57 sec ago
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Pakistan hikes electricity prices by Rs2.83 per unit citing fuel cost adjustment

  • Fuel cost adjustment for March to reflect in consumers’ bills for the month of May, says power regulator
  • Pakistan has been caught in a high inflationary cycle since April 2022 due to surging food and fuel prices

ISLAMABAD: Pakistan’s National Electric Power Regulatory Authority (NEPRA) on Wednesday authorized distribution companies to levy a Rs2.83 per unit additional charge on consumers’ bills for May, with the move likely to fuel inflation in a country already suffering an economic crisis. 

A notification by NEPRA seen by Arab News stated that the fuel cost adjustment pertains to March, adding that the additional charges would apply to all consumer categories except “Electric Vehicle Charging Stations (EVCS) and lifeline consumers.”

“The said adjustment shall be shown separately in consumers’ bills on the basis of units billed to the consumer in the month of March 2024,” the notification said. 

Pakistan has been caught in a high inflationary spiral since April 2022, with the highest-ever inflation rate recorded at 38 percent in May 2023. The government credits soaring inflation to painful decisions it had to take to meet conditions for an International Monetary Fund (IMF) bailout program, including hiking energy tariffs and fuel prices.

Gas and electricity rates were hiked by 318.7 percent and 73 percent respectively in a year, according to official data.

The price hikes come as Pakistan is set to begin discussions with the IMF this month over a new multi-billion-dollar loan agreement after completing its nine-month, $3 billion loan arrangement with the lender. 

Under the last IMF bailout, Pakistan was told to prevent further accumulation of circular debt in its power sector, arising from subsidies and unpaid bills. For a new program, the South Asian nation will need to implement reforms to reduce costs by improving electricity transmission and distribution, moving captive power into the grid, improving governance, and combating theft. 

It will also have to maintain power and gas tariffs at levels that ensure cost recovery, with adjustments made to safeguard the financially vulnerable, through existing progressive tariff structures.
 


Senior World Bank official concludes Pakistan trip, reaffirms support for economic stability

Updated 08 May 2024
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Senior World Bank official concludes Pakistan trip, reaffirms support for economic stability

  • World Bank Vice President for South Asia Martin Raiser meets PM Sharif, key officials in Islamabad
  • Raiser praises Pakistan’s reform plans to boost growth, attract private investment and tackle poverty

KARACHI: A senior World Bank official concluded his three-day visit to Pakistan on Wednesday, reaffirming the international institution’s support for the country’s economic stabilization after meeting Prime Minister Shehbaz Sharif and key government officials in Islamabad. 

World Bank Vice President for South Asia Martin Raiser arrived in the federal capital on May 6, with his visit taking place as Pakistan faces a chronic balance of payment crisis, forcing it to turn to the International Monetary Fund (IMF) for a new long-term bailout deal. 

Pakistan has faced the challenges of revenue generation and government expenditure in the past and struggled with high levels of debt, a large fiscal deficit and an ongoing need for structural reforms to improve its fiscal sustainability.

“The World Bank Vice President for South Asia, Martin Raiser, concluded his three-day visit to Pakistan today and reaffirmed the World Bank’s support to stabilize the economy and accelerate inclusive and resilient growth,” a press release by the international institution read. 

It said Raiser met Sharif, ministers of finance, water, power, energy, and petroleum, and his counterparts to discuss Pakistan’s development priorities. 

“The discussions focused on economic and fiscal reforms, human capital development, adaptation to climate change, energy sector reforms, and digitalization as a foundational enabler and accelerator of development,” the World Bank added. \

Raiser said he was pleased to learn of Pakistan’s reform plans to boost growth and attract private investment, strengthen climate resilience, and invest in human capital to tackle daunting challenges such as child stunting and poverty. 

The World Bank official also visited Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province to meet Chief Minister Ali Amin Gandapur. 

“Discussions focused on the provincial developmental priorities and how can the World Bank step up its support in key sectors, like education, water and sanitation, health, rural roads, and livelihoods,” the statement said. 

He also attended a national conference on education in Islamabad, where PM Sharif also spoke. Raiser reaffirmed the World Bank’s commitment to urgent action to tackle the large number of out-of-school children in Pakistan.


PM Sharif declares ‘education emergency’ across Pakistan to enroll out-of-school children

Updated 08 May 2024
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PM Sharif declares ‘education emergency’ across Pakistan to enroll out-of-school children

  • Pakistan has one of the world’s highest out-of-school children population at 26.2 million 
  • PM Shehbaz Sharif says will personally oversee the national program to ensure its success

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday declared an “education emergency” across Pakistan on Wednesday, vowing to personally oversee the program which he hoped would enroll over 26.2 million out-of-school children in educational institutions. 

Pakistan has the second-highest population of out-of-school children in the world at 26.2 million, according to Unicef Pakistan. Pakistani experts have identified population growth, lack of localized strategies, and economic issues as the main reasons why over 26 million Pakistani children are not enrolled in schools across the country. 

A report by Pakistan’s education ministry in January revealed that out of 26.2 million out-of-school children, 11.73 million are in Punjab, 7.63 million in Sindh, 3.63 million in Khyber Pakhtunkhwa (KP) and 3.13 million in Balochistan province.

Speaking at an event titled “National Conference on Education Emergency,” Sharif said enrolling millions of children back into schools was a “tall order” that could be achieved with conviction. 

“I declare from this moment an emergency in education all over Pakistan,” Sharif told members of the conference, which included federal ministers, parliamentarians, vice-chancellors, and diplomats. 

The Pakistani prime minister said he would personally oversee the national program, adding that he would meet the chief ministers of all four provinces in the country for the sake of Pakistani children and their future. 

“This is about our children and our future,” Sharif said. “This is a very challenging task, no doubt. But nations which had faced difficulties and defeat in the past arose from the ashes of defeat.”

He hoped provincial governments in Pakistan would help the center in achieving its goal of promoting education in the country and transforming it into an educated nation. 

“I guarantee, if we move in unison to find our space, Pakistan will become one of the most educated societies one day soon,” he remarked. 
 


Pakistan’s first lunar satellite ICUBE-Q successfully enters moon’s orbit 

Updated 08 May 2024
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Pakistan’s first lunar satellite ICUBE-Q successfully enters moon’s orbit 

  • ICUBE-Q was deployed in moon’s orbit around 1:14 p.m. Pakistan Standard Time, says Institute of Space technology official 
  • IST official describes development as “important” one for Pakistan allowing it to conduct “bigger” space missions in future

Islamabad: Pakistan’s first lunar satellite ICUBE-Q entered the moon’s orbit successfully today, Wednesday, a senior official of the country’s Institute of Space Technology (IST) confirmed, saying the “important” development could pave the way for “bigger” space missions for the country in the future.

The ICUBE-Qamar satellite carries two optical cameras to image the lunar surface and weighs around 7kg. Cubesats are tiny box-shaped satellites that are mainly launched into low Earth orbit to observe the Earth, test new communications technology, or perform miniature experiments.

Pakistan’s first lunar satellite was launched aboard China’s Chang’e-6 probe on May 3. The Chinese probe is tasked with landing on the far side of the moon, which perpetually faces away from the Earth, after which it will retrieve and return samples. China is the first country to make such an ambitious attempt.

“Our ICUBE-Q was deployed successfully in its orbit at 1:14 p.m. Pakistan Standard Time,” Dr. Khurram Khurshid, the head of the electrical engineering and computer science department at IST and a co-lead on the satellite project, told Arab News.

Dr. Khurshid said Pakistani officials will continue to test the satellite’s system for the next three to four days. He said initial tests revealed there were no complications with the cubesat’s system. 

The IST official said the development means Pakistan is officially in an exclusive club of countries that have conducted deep space missions. 

“This is the first step, a step in the right direction,” Dr. Khurshid noted. “It can lead to bigger space missions, such as landing on the moon or various other experiments.”

Dr. Khurshid said Pakistan would be able to share images from the satellite by May 15. 

Around 100 students from IST contributed to developing the satellite. Pakistan’s proposal to build the satellite was accepted by the China National Space Agency (CNSA) from plans submitted by eight member states of the Asia-Pacific Space Cooperation Organization (APSCO). 

The design, development, and qualification of the ICUBE-Q satellite were spearheaded by faculty members and students of the IST in collaboration with China’s Shanghai Jiao Tong University (SJTU), with support from Pakistan’s National Space Agency, SUPARCO.

The ICUBE-Q has two cameras as payload for taking images of the lunar surface that will be transmitted back to Earth for analysis.