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

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

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.”


Over 40 Pakistanis feared dead in migrant boat disaster off African coast

Over 40 Pakistanis feared dead in migrant boat disaster off African coast
Updated 1 min 13 sec ago
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Over 40 Pakistanis feared dead in migrant boat disaster off African coast

Over 40 Pakistanis feared dead in migrant boat disaster off African coast
  • Hundreds of Pakistanis die every year while trying to reach Europe by land and sea
  • In 2023, nearly 350 Pakistanis were on board a fishing boat that capsized near Greece

ISLAMABAD: More than 40 Pakistanis are feared to have drowned in the capsizing of a boat off West Africa’s Atlantic coastline, which has emerged as a primary point of departure for migrants aiming to reach Europe.
President Asif Ali Zardari expressed grief over the deaths and stressed the need for strict measures to curb human trafficking.
Zardari’s comments in a statement late Thursday came after a Spain-based migrant rights group, Walking Borders, said 50 people had died on their way to the Canary Islands and that 44 of them were Pakistanis. The group said the migrants began their journey on Jan. 2.
Pakistan said it had been informed by its embassy in Morocco that a boat carrying 80 passengers, including some Pakistanis, had set off from Mauritania and capsized near Dakhla, a Moroccan-controlled port city in the disputed Western Sahara.
Millions of people migrate to Europe each year, the vast majority using legal and regular means. Less than 240,000 people crossed borders into the continent without papers last year, according to the European Union’s border agency Frontex.
As authorities have worked to prevent migration and smuggling from countries in the Mediterranean Sea, more dangerous routes have become increasingly used. Frontex reported more than 50,000 migrants made the journey from northwest Africa to Spain’s Canary Islands in 2024, including 178 Pakistanis.
Walking Borders said in a report last week that 9,757 people had died or gone missing trying to cross to the islands, calling the route “the deadliest in the world.”
The islands are roughly 65 miles (105 kilometers) from the closest point in Africa, but to avoid security forces, many migrants attempt longer journeys that can take days or weeks. The majority last year departed from Mauritania, which is at least 473 miles (762 kilometers) from the closest Canary Island, El Hierro.
Pakistan’s Foreign Ministry said several survivors, including Pakistanis, are staying in a camp near Dakhla. Pakistan’s Embassy in Morocco is in touch with local authorities and officials have gone to Dakhla to help survivors, according to a ministry statement.
The ministry did not say how many Pakistanis had died. Officials at the ministry were not immediately available for comment on Friday.
Hundreds of Pakistanis die every year while trying to reach Europe by land and sea with the help of human smugglers.
In 2023, an estimated 350 Pakistanis were on board an overcrowded fishing boat carrying migrants that sank off Greece. Many perished in what was one of the deadliest incidents in the Mediterranean Sea.
Pakistan says it has launched a crackdown on human traffickers.


New feeder service launched between Dubai and Karachi to strengthen trade ties

New feeder service launched between Dubai and Karachi to strengthen trade ties
Updated 18 min 45 sec ago
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New feeder service launched between Dubai and Karachi to strengthen trade ties

New feeder service launched between Dubai and Karachi to strengthen trade ties
  • UAE has been modernizing Pakistani ports, trying to turn the South Asian country into a transit trade hub
  • Pakistan aims to bolster economy, attract international trade opportunities by optimizing global sea lanes

ISLAMABAD: DP World, in collaboration with Pakistan’s National Logistics Corporation (NLC), launched a feeder service this week to transport shipping containers from Dubai to Karachi, state media reported.
A global logistics giant operating in over 75 countries, DP World specializes in port operations, terminal management and logistics services. Feeder services use smaller vessels to transport containers between regional ports, reducing shipping costs and transit time.
“DP World and National Logistics Corporation (NLC) have started the feeder service for shipping containers from Dubai’s Jebel Ali port to Karachi,” Radio Pakistan reported on Thursday.
“The Group Chairman and CEO of DP World, Sultan Ahmed bin Sulayem, inaugurated the feeder service,” it added.
The weekly service promises faster and more reliable container delivery, directly benefiting the business community and boosting economic activity in the region.
The initiative also aims to enhance trade connectivity and strengthen economic ties between the United Arab Emirates (UAE) and Pakistan.
The UAE, one of Pakistan’s largest trading partners, has played a key role in modernizing the South Asian country’s ports and establish them as transit trade hubs. By optimizing global sea lanes, Pakistan seeks to bolster its economy and attract greater international trade opportunities.
Top officials from DP World, NLC and Port Qasim attended the launch ceremony, highlighting the strategic importance of this initiative for regional trade dynamics.


Pakistan recorded highest ever monthly IT exports of $348 million in Dec. 24 — data

Pakistan recorded highest ever monthly IT exports of $348 million in Dec. 24 — data
Updated 17 January 2025
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Pakistan recorded highest ever monthly IT exports of $348 million in Dec. 24 — data

Pakistan recorded highest ever monthly IT exports of $348 million in Dec. 24 — data
  • Exports were up 28% year-on-year in the first half of fiscal year 2025
  • Growth comes amid concerns over slow Internet speed, VPN restrictions

ISLAMABAD: Pakistan has recorded the highest ever monthly IT exports of $348 million, up by 15 percent year-on-year and 12 percent month-on-month in Dec. 2024, while exports were up 28 percent year-on-year in the first half of fiscal year 2025, data from the Topline Securities brokerage house showed on Friday.

The growth figures come as associations and businesses have expressed alarm over slowing Internet speeds since last year, as the federal government moves to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda.” The government has also been cracking down on VPN use for months, with the Pakistan Telecommunications Authority (PTA) announcing that businesses and freelancers would be able to legally use VPNs by registering with the government, but unregistered VPNs would be blocked in Pakistan after Nov. 30, 2024. The deadline was later withdrawn, and a new one has not been announced.

The use of VPNs has sharply risen in Pakistan since February last year when the government banned X soon after allegations of rigging in general elections surfaced. The election commission denies them.

In a report released on Friday, Topline said monthly IT exports in Dec. 2024 were higher than the last 12 month’s average of $299 million. This is the 15th consecutive month of YoY IT export growth, starting from Oct. 2023. This takes IT exports for the first half of fiscal year 2025 to $1.86 billion, up by 28 percent YoY. Export proceeds per day were recorded at $16.6 million for Dec. 24, compared to $14.8 million in Nov. 24. 

“YoY jump in IT exports is due to (1) IT export companies growing client base globally, especially in GCC region, (2) relaxation in the permissible retention limit by the State Bank of Pakistan, increasing it from 35 percent to 50 percent in the Exporters’ Specialized Foreign Currency Accounts, (3) allowance of equity investment abroad through these foreign currency accounts and (4) stability in PKR encouraging IT exporters to bring higher portion of profits back to Pakistan,” the Topline report said. 

“Pakistani IT companies are active in engaging with global clients. Recently leading IT companies of Pakistan attended Oslo Innovation Week 2024, and Pak-US Tech Investment Conference.”

According to a Pakistan Software Houses Association (P@SHA) survey, 62 percent of IT companies are maintaining specialized foreign currency accounts.

A major development in FY25 was the state bank adding a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies. IT exporters can now acquire interest (shareholding) in entities abroad utilizing up to 50 percent proceeds from specialized foreign currency accounts. 

“This development will further boost confidence of IT exporters to remit proceeds back to Pakistan,” Topline said.

“We believe, IT sector will continue its growth trajectory and momentum with likely growth of 10-15 percent for FY25 to $3.5-3.7bn. Under ‘Uraan Pakistan’ national economic plan, the government has set a target of $10bn IT exports by FY29. This implies a target CAGR of 28 percent till FY29.”

Last August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” 

The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned last year Internet slowdowns and the restriction of VPN services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually.


Pakistan starts trainings for pilgrims selected for Hajj 2025 under government scheme

Pakistan starts trainings for pilgrims selected for Hajj 2025 under government scheme
Updated 17 January 2025
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Pakistan starts trainings for pilgrims selected for Hajj 2025 under government scheme

Pakistan starts trainings for pilgrims selected for Hajj 2025 under government scheme
  • Trainings to be held at 147 locations across country, first session in Peshawar Saturday
  • First phase of mandatory Hajj trainings will be completed on Feb. 27, religious affairs ministry says

ISLAMABAD: The ministry of religious affairs has started mandatory training sessions for Pakistani nationals selected to perform this year’s Hajj pilgrimage under the government scheme, Radio Pakistan reported on Friday.

Earlier this month, Pakistan and Saudi Arabia signed the Hajj agreement 2025 under which 179,210 pilgrims from the South Asian country will perform the annual pilgrimage this year. The quota is divided equally between government and private schemes. 

“Hajj training will be provided at one hundred and forty seven locations across the country,” Radio Pakistan reported, quoting a statement from the religious affairs ministry. “The first session of the training workshop will be held in Peshawar tomorrow [Saturday].”

The attendance of Hajj pilgrims at the trainings will be ensured through a QR code in the Pak Hajj mobile app, the report said. Overseas Pakistanis will also receive training at their respective Hajji camps prior to embarking on the journey.

“The first phase of mandatory Hajj training will be completed on 27th of next month [February],” the report added.

Pakistan’s Hajj policy has allowed pilgrims to make payments in installments for the first time. Under this scheme, the first installment of Rs200,000 ($717) had to be submitted with the application, the second installment of Rs400,000 ($1,435) within 10 days of balloting and the remaining amount by Feb. 10 this year.

The Pakistani religious affairs ministry has also launched the Pak Hajj 2025 mobile application, available for both Android and iPhone users, to guide pilgrims.

Additionally, the government announced a reduction in airfare, lowering ticket prices for federal program pilgrims to Rs220,000 [$785.41], down from last year’s Rs234,000 [$835.39].

Pakistan International Airlines, Saudi Airlines, and private carriers have agreed to transport pilgrims this year.


What are the cases against Pakistan’s former PM Imran Khan and his wife?

What are the cases against Pakistan’s former PM Imran Khan and his wife?
Updated 17 January 2025
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What are the cases against Pakistan’s former PM Imran Khan and his wife?

What are the cases against Pakistan’s former PM Imran Khan and his wife?
  • Khan, who was ousted from office in 2022, has been behind bars for more than a year
  • On Friday, ex-PM was convicted of receiving land in bribe from a real estate developer

A Pakistani court on Friday sentenced former Prime Minister Imran Khan to 14 years imprisonment and his wife Bushra Bibi to seven years in a land corruption case, his legal team said.

The verdict in the case, the largest in terms of financial wrongdoing faced by Khan, was delivered by an anti-graft court in a prison in the garrison city of Rawalpindi, where Khan has been jailed since August 2023.

Here are some of the allegations against the 72-year-old former cricket star, named in dozens of cases since he was ousted from office in 2022 that have kept him behind bars for more than a year.

GRAFT ALLEGATIONS

On Friday, Khan was convicted on charges that he and his wife were gifted land by a real estate developer during his premiership from 2018 to 2022 in exchange for illegal favors.

He was first arrested in May 2023 in this case, on allegations that the couple received land worth up to 7 billion rupees ($25.12 million) as a bribe through a trust created in 2018.

His Pakistan Tehreek-e-Insaf (PTI) party has maintained the land was donated for charitable purposes.

Bibi was taken into custody on Friday after being released on bail in October in another case.

STATE GIFTS

\Khan was arrested in August 2023 for allegedly selling gifts worth more than 140 million rupees that he received during his premiership and which belonged in state possession. Khan and Bibi were indicted on fresh charges in December after they were sentenced in two other versions of the case, although the sentences have been suspended. The couple has denied any wrongdoing.

ABETTING VIOLENCE

Khan faces anti-terrorism charges in connection with the violence that followed his arrest in May 2023, and in relation to which several of his supporters have already been sentenced.

He was indicted in December and is on trial.

STATE SECRETS

Khan was accused of making public a classified cable sent to Islamabad by Pakistan’s ambassador in Washington in 2022, while he still held office. He was acquitted in the case in June.

UNLAWFUL MARRIAGE

Khan and his wife were accused of breaking Islamic law by failing to observe the mandated waiting period between Bibi’s divorce from her previous husband and their marriage in 2018. They were acquitted of the charges in July.