FF 88

Pakistan-Iran Relations i
PAKI STAN-IRAN RELATI ONS

EDI TOR
DR NOOR UL HAQ

ASSI STANT EDI TOR
MI SS FARHAT AKRAM MUGHAL
IPRI lactile ii
CONTENTS

Preface
1. Address by the Prime Minister o Pakistan to the Iranian Majlis 1

2. Joint Press Statement on the Conclusion o the Visit o the
Prime Minister o Pakistan to Iran

3. Statement by loreign Minister in the Senate on Reported Small Scale 11
US Coert Action Programme Aimed at Moderating the Goernment
o the Islamic Republic o Iran`

4. Report on a Visit o Iranian Minister or Petroleum 12

5. Memorandum o Understanding o the 10
th
Joint Lconomic 14
Commission

6. Memorandum o Understanding on Cooperation in the lield o 23
1ourism and Pilgrimage

. Memorandum o Understanding o the 11
th
Joint Lconomic 25
Commission

8. Programme o Cultural, Scientiic and 1echnical Lxchange 34
or the \ears 1999-2003

9. 1ehran has No Discords with Islamabad Any More 42

10. Pakistan, Iran Agree to Lay Gas Pipeline: 1rade 1ies being Cemented 42

11. New Lra in Pakistan-Iran 1ies 43

12. A Report on a Press Conerence Addressed Jointly by the Minister 46
or Petroleum and Natural Resources o Pakistan and Iran

13. Khatami Visit, a 1urning Point 48

14. 1he Khatami Visit 49

15. Lconomic 1ies 1op Priority 51

16. Pakistan-Iran Relations: Compulsions and Conditions or a 52
Strategic Relationship

1. A New Chapter in 1ies with Iran 61

18. Visit o the Prime Minister to Iran 63

19. Joint Communiqu Issued on the Conclusion o the Visit o 2
the Prime Minister o Pakistan to Iran

Pakistan-Iran Relations iii
20. Visit o the lirst Vice President o Iran to Pakistan 5

21. Pakistan and Iran Set >1 Billion 1rade 1arget 9

22. Prime Minister to Discuss Bilateral, Lconomic and 1rade Relations 81
with Iranian Leaders

23. late o Iran-Pakistan India Gas Pipeline: Project langs in Balance 82

24. low Pakistan can lelp Iran 84

25. Iran-Pakistan-India Gas Pipeline o the Ground by Next \ear 8

26. Pakistan-Iran 1ies are Deeply Rooted in listory 88

2. Iran and Pakistan loreign Ministers Call or Lnhanced Cooperation 91

28. Good Decision All the Same 92

29. Pakistan, Iran Decide to Set Up Joint Inestment Company 93

30. Uneasy 1ies with Iran 94

31. Pakistan-Iran 1rade 1ies 98

32. Pakistan-Iran: Relations Undeterred by Sanctions 99

33. Pakistan-Iran Inestment Company Set Up 100

34. Pakistan Important Country or Iran 101

IPRI lactile i

PREFACE

Pakistan and Iran are close neighbours, sharing 909
kilometers border in a
strategically important location in \est Asia. 1hey are not only geographically
linked with each other, but are bound together in culture, language, religion,
ethnicity and traditions since times immemorial. Iran was the irst country to
accord recognition to Pakistan when it was established in 194. Since then,
relations between the two countries hae normally remained quite cordial.
Both countries share close and common perceptions on arious regional and
global issues, especially those concerning the |vvab. 1hese relations were also
enhanced by regular exchange o high leel isits, between the two countries.

1he ties between Iran and Pakistan are urther strengthened by their
membership in the Organisation o Islamic Conerence ,OIC,, comprising 5
Muslim countries, and Lconomic Cooperation Organisation ,LCO,, ormed
o ten states o Central and \est Asia or promoting sustainable socio-
economic deelopment. 1he LCO replaced the Regional Cooperation
Deelopment ,RCD,, established in 1962 by Pakistan, Iran and 1urkey. In
addition, both Iran and Pakistan now hae an obserer status in the Shanghai
Cooperation Organisation ,SCO,.

1he actfite commences with the address o the Prime Minister o
Pakistan to the Iranian Majlis ,8 Noember 1995, and ends with the statement
o Iranian loreign Minister in Pakistan ,16 May 200,. Besides, it includes
selected memoranda, joint statements, articles, and media reports during the
interening period.

31 July 200 Noor ul laq

http:,,en.wikipedia.org,wiki,List_o_land_border_lengths
Pakistan-Iran Relations 1
ADDRESS BY THE PRI ME MI NI STER TO THE I RANI AN MAJLI S
TEHRAN: NOVEMBER 8, 1995

Speaker Ali Akbar Nateq Nouri,

Lxcellencies,
I consider it an honour to address the elected representaties o the Islamic
Republic o Iran. Iran has a long and ancient history, a rich cultural heritage, a
distinctie language. Its history, heritage, language hae let their imprints ar
and wide in our region.
1he Islamic Reolution in Iran came about as the result o a long
struggle, the sacriices o many martyrs, the suerings o many more. It was
the popular uprising o a people determined to take charge o their own
destiny. 1he Islamic Reolution was closely ollowed by the rest o the world
and iercely deended by the people o Iran.
Shortly ater its inception, the Reolution, we caught in an
unortunate conlict. 1he people o Iran once again aced this new challenge
with ortitude. \e are glad that peace has now dawned and the people o Iran
are engaged in the task o nation building under the guidance o their new
elected representaties. I mention this history to recall the sense o sacriice
which the people o Iran hae demonstrated to deend what they beliee in
irrespectie o the cost.
\e in Pakistan too hae struggled and sacriiced or what we belieed
in. 1he creation o Pakistan itsel was the result o the struggle and sacriices
o the Muslims o South Asia, under the leadership o Quaid-e-Azam
Mohammed Ali Jinnah. Many o the opponents o Pakistan thought, it would
not surie the diiculties caused or it at its inception. But the people o
Pakistan rose to the challenge and deended the nation state against all threats.
In three wars Pakistan upheld its soereignty and independence.
Deeply conscious o the needs or Islamic solidarity and o the
struggle against colonialism, Pakistan has been in the oreront o all Muslim
causes. \hether it was the independence o Algeria or 1unisia or Morocco, it
played a critical role. Lqually, Pakistan raised its oice or the people o
Kashmir, Palestine, Zimbabwe, and Namibia and against apartheid. More
recently, Pakistan along with Iran and other countries o the world helped its
Aghan brethren to resist the oreign occupation o Aghanistan. \e raised
our oice or the people o Bosnia-lerzegoina along with the people o Iran
and all justice loing people o the world.
Iran and Pakistan are not only two neighbouring but we are two
Muslim countries. Islam binds us together in a spiritual bond which others
cannot share in the same manner. Islamic principles hae helped guide our
people and shape our destiny. I Iran and Pakistan hae raised their oice or
IPRI lactile 2
the people o Kashmir, Palestine, Bosnia, Aghanistan it is because Islam binds
upon us to speak the truth and uphold the banner o justice or the just cause.
Islam makes it incumbent upon its ollowers to help the weak, the poor, the
oppressed, thus it has a human dimension which shapes our thoughts and
actions.
All Muslims, whereer we may be greet each other wish the word
As-salaam-o-AIaikum` which means Peace Be Upon \ou`, 1hereore, Iran
and Pakistan seek peace whereer we see conlict. All Muslims ace the loly
Kaàba when we bow down to pray. In this act o prayer is the demonstration
o our unity.
Some elements would not like to see unity within the Muslim world.
Some elements would like to diide the Muslim world on sectarian lines. Such
elements are not sincere with Islam and the Muslim world. Muslim peoples
and we Muslim countries must beware o such elements. 1he rise o
sectarianism would weaken us, diide us, and undermine our aims, objecties
and goals. All Muslims are Muslims whether they belong to one sect or
another.
In unity lies our strength and in unity lies our common identity, our
hopes or the uture and the attainment o our common goals or the
prosperity o our people and the dignity o our nation states. \ith the end o
the Cold \ar, we hae witnessed the decline o the Order, which dominated
the world since \orld \ar-II ended. 1his was a world o ideological camps,
where dierent groups were identiied as let or Right.
Now we see the rise, in some areas, o new dangers, the dangers o
ethnicity or tribalism. In Islam there is no place or ethnicity, racial prejudice,
tribalism or discrimination. In Islam all human beings are equal beore the eyes
o Almighty Allah irrespectie o their ethnic, tribal or racial ailiations. .In
this we see again the message o unity. And because we beliee in the conent
o unity and repudiate discrimination we seek a \orld Order which is just and
equal. And that is why we oppose tyranny and injustice.
1he end o the Cold \ar has seen the winds o reedom and
democracy blow across the world. Iron curtains hae been lited. 1he Berlin
\all has allen. \e hae welcomed the process o greater democratization
within nations. loweer, the process o democratization within nations is not
suicient. \e need greater democratization between nation states too.
Recently Iran and Pakistan both participated in the Golden Jubilee o
the United Nations. It was a time or relection. It was time to recollect what
we had achieed and what we still needed to achiee. \hile we hae achieed
global peace, regional conlicts continue to cast dark shadows on the
international horizon. One such major regional conlict which has remained
unresoled is the Kashmir dispute. 1he Secretary General o the United
Nations has described this dispute as one o the oldest unresoled items on
the agenda o the United Nations.
More than 600,000 occupying troops hae ailed to crush the
indomitable spirit o the Kashmiri people. Dawn to dusk curews, gang rapes
o women, summary trials, arbitrary detention, custodial deaths, and wide-
spread torture are some o the atrocities committed. Acts o sacrilege hae
been carried out in an attempt to destroy the reedom moement. Such acts
hae prooked the sensibilities o the Kashmiri people, the Muslim people and
all people who oppose sacrilege.
\ho can orget siege o the loly lazrat Bal shrine in the alley o
Kashmir \ho can orget the burning o the Mosque and Mazar at Charar
Sharee \ho can orget that this was done by those who burnt the Babri
Masjid Such acts were aimed not only against the Kashmiri people but against
all Muslims. 1hese acts cannot be orgotten by anyone anywhere these acts
cannot be orgotten or orgien by the Kashmiri people. 1hey will be passed
rom generation to generation.
Pakistan and Iran stand shoulder to shoulder in support o the
Kashmiri people in their struggle or sel determination. \e recall the historic
words o President Rasanjani in the Parliament o Pakistan and I quote
Kashmir issue is your problem and it is also our problem too, because it
Islamic problem. Like you we complain against the United Nations why do
they not enorce and implement their resolutions and why do they allow
bloodshed.` Iran, Pakistan and the entire Muslim world at the historic
Casablanca Conerence in a declaration in December 1994 called or the
resolution o the Kashmir dispute in accordance with United Nations
Resolutions. So-called elections will not satisy the people o Kashmir who are
demanding plebiscite with one oice under the banner o the All Parties
lurriyat Conerence.
Pakistan and Iran hae condemned Serbian aggression against Bosnia
lerzegoina. 1he naked aggression against Bosnia in the heart o Lurope
telecast across the world is a stain on the conscience o mankind. 1he world
has shown a dismal ailure to put into place security mechanisms to uphold the
Charter o United Nations. 1he world has orgotten that two \orld \ars
sprang in one-way or another rom Sarajeo. Recently some moes hae been
made to bring about a political settlement. \e hope that these moes will be
to the satisaction o the people o Bosnia-lerzegoina that will lead to peace.
loweer, the tragedy in Bosnia has made one thing clear: 1hat is that each
nation must be prepared to deend itsel. I it cannot deend itsel, it will be
swallowed up and blotted out.
Unless a country has a strategic importance to the rest o the world,
the rest o the world will ignore it or be slow in responding to it. 1he slow
response may lead to a ait accompli in itsel. \e are aware that some o our
riends hae argued that the world was slow in responding to the ulterior
purpose o allowing the aggressors the time to ulil the aims o their
IPRI lactile 4
aggression. It we only the spirit o the Bosnian people that thwarted this
tragedy:
I must say the Muslim world through the OIC Contact Group on
Bosnia also contributed in a humble way to keep the issue alie, to assist and
to coordinate global and regional moes along with the Goernment o
Bosnia. But i there is one clear lesson i.e. that each country must be prepared
to deend itsel i it is not crucial to the larger world. 1o be critical one has to
hae access to critical sea passages or energy lows which can adersely aect
global trade. 1hus nations are judged by their impact on global trade.
One example o a country raaged by ciil war is Aghanistan. 1he
world united when Aghanistan was under oreign occupation to deend not
only reedom in Aghanistan but to deend the ree world. Now that there is
no threat to the ree world, Aghanistan is a orgotten global story. Since
Aghanistan has no bearing on the low o global commerce, it has no impact
on world opinion. Lxcept or handul o countries, the world has orgotten
Aghanistan. Lery now and then cursory reerences are made about
Aghanistan. Just reerences. Very little substantie action. Both the United
Nations and OIC hae sent representaties to the Kabul regime but the Kabul
regime has been ending them o to gain time.
My heart bleeds or the brae people o Aghanistan. A whole
generation o young people hae grown up in war, known only conlict, seen
only suerings. 1hey lie against the background music o mortar and rockets.
1hey lie amongst the raaged land with poerty, hunger and insecurity. Peace
is the message o Islam. But the leaders and commanders seem to hae
substituted the message o peace or the message o power. 1hey ight each
other or power. 1his is most unortunate. \e in Pakistan hae decided not to
gie material or military assistance to any action.
\e beliee that the term o the Kabul regime is oer. \e condemn
the Kabul regime or burning our Lmbassy in a premeditated attack. \e note
the Kabul regime has allen into the arms o those who seek to destroy the
people and yet we do not interere. \hen President Rasanjani addressed the
Parliament o Pakistan, he said: In act no one but a mad man who wants to
kill himsel would like to interere in Aghanistan in such a seere situation`.
1oday the sister o President Rasanjani is here to repeat his words as our own
sentiments in the Parliament o Iran.

Mr. Speaker,
\e continue to gie reuge to 1.5 million reugees rom Aghanistan because
the despicable acts against us by the Kabul regime do not relect the wishes o
the ast majority o the Aghan people. \e do so because it is our policy not
to interere in Aghanistan, we want the dust to settle down. \e want natural
leaders to emerge. \e want the Aghans to sole their problems themseles,
o course we keep our channel o communications open with all groups and
we shall continue to do so. \e keep our country open or all groups. All
Aghan group leaders are welcome to isit Pakistan. Both Iran and Pakistan
indeed are geographical neighbours o Aghanistan. \e are concerned about
the instability in Aghanistan and will continue to watch oer the situation
closely. \e in Pakistan beliee the UN and OIC should redouble their eorts
or a political solution. \e do not beliee any one group in Aghanistan has
the strength or inluence to rule oer all Aghanistan. Dierent groups will
need to come together and decide on a ormula o power sharing. Such an
eent will help expedite a political solution. Pakistan`s oreign policy is based
on principles. \e are good riends. Our history shows that we do not change
riends with changing season. \e beliee in keeping riends and nurturing
riendships. Our relations with one country are neer at the cost o our
relations with another country.
\hen America and China were not on speaking terms, we had
relations with both. 1heir disagreements were their disagreements. I we did
anything, it was to counsel both to come closer and bridge the dierences. \e
consider Iran a riend, a neighbour, a brother in Islam. I recall the words o
President Rasanjani when he said to the Pakistani Parliament: It is a cruel
allegation against us that we both are rials and are competing against each
other. Rialry or what 1here is no rialry between us.. And i anyone
thinks that Iran and Pakistan are haing their own interests in interering in
Aghanistan, then no doubt, he is crazy` A segment o public opinion has
started such rumours which are baseless.
1hose who are jealous o the riendship between Iran and Pakistan,
those who would like to see the security o Iran and Pakistan weakened, those
who would like to create dierences between two leading members o the
Muslim Ummah, perhaps they would like to see Iran and Pakistan as rials.
1hey would like to see Iran and Pakistan competing against each other.
Neither the leadership, the goernments, the people not the elected
representaties o Iran and Pakistan can dream o the day when we would be
rials or compete with each other. \e are riends. lriends because o
principles, riends because o geography, riends because o religion. lriends
because we trust each other and need each other and because our mutual
security and well being rests on this trust and this riendship. I anyone seeks
to undermine the security o Iran, the Iranian Nation knows it can rely on
Pakistan. And i anyone tries to undermine the security o Pakistan, the
Pakistani Nation knows it can rely on Iran.

Mr. Speaker,
\hile markets are taking the place o missiles as a measure o might, we
cannot turn a blind eye to those who seek to dominate with military might. In
our region, one country is building up a mighty military arsenal. It is
determined to build blue water nay. It has started production o short range
IPRI lactile 6
missiles which can be deployed in hal an hour. 1hese missiles can target eery
single city in Pakistan. 1hese missiles are capable o carrying nuclear warheads.
Ater this, this country intends to deelop more missiles with a greater range.
1his country seeks to deelop missiles capable o carrying nuclear warheads all
the way rom \emen to the straits o Mallaca. 1his country, which is a non-
Muslim country, seeks to bring mostly Muslim countries rom \emen to
straits o Mallaca under the coer o its range. \e beliee that i this country
did not hae ar-reaching ambitions, it would not seek to make missiles o
such range and carrying such lethal weapons.
1he deelopment o such missiles will cast the shadow o nuclear
threat to the soereignty o Iran, Iraq, Syria, Kuwait, and Saudi Arabia to the
\est and to Malaysia, Singapore, Indonesia and Brunie to the Last. Pakistan
deplores this missile build-up which threatens to start a broader missile race.
Pakistan calls or a regional solution to the missile issue.
Pakistan does not wish to see nuclear prolieration or the spread o
the weapons o mass destruction. Pakistan cautions the world to awaken to the
danger boiling in the cauldron beore it oerlows with dangerous
consequences or regional and international peace and stability.

Mr. Speaker Sir,
As a Muslim woman, it gladdens my heart to see my Iranian sisters take their
place with pride in the Iranian Parliament. In August, Pakistan hosted a
Conerence o \omen Parliamentarians rom Muslim Countries. More than
one hundred women representaties rom 35 Muslim countries participated in
the Conerence. 1he large participation by our Muslim sisters showed that a
great awakening is taking place amongst the Muslim women. 1his awareness
amongst Muslim women irst took place at the dawn o Islam. No one can
orget that God chose a woman, lazrat Bibi Khadija, to be the irst witness to
Islam. No one can orget that the loly Prophet ,Peace Be Upon lim, married
a working woman. No one can orget that God chose a woman, lazrat Bibi
latima, through whom the line o the loly Prophet ,PBUl, was passed on
through the generations.
low can we orget that Bibi latima is the daughter o the loly
Prophet ,PBUl,, the daughter o the irst conert to Islam, the wie o lazrat
Ali. the mother o the Imams. 1hat God chose one woman or so many
exalted positions has a meaning which we need to appreciate. \omen in Islam
must be accorded respect, dignity and rights bequeathed by Allah in the loly
Book as recited by the loly Prophet ,PBUl,.

Mr. Speaker,
I thank you once again on my own behal and the behal o the Pakistani
people or initing me to address the Iranian Nation through its Parliament
and elected representaties. 1his is a singular honour that I am the irst emale
Pakistan-Iran Relations
chie executie who has been accorded this honour and the irst Pakistani
chie executie.

Mr. Speaker,
\ou can count on our riendship. \e shall continue to cooperate in the years
ahead as we hae in the past.

1hank you ery much.

oreigv .ffair. Pa/i.tav, Vol. XII, Issue 11-12, Noember-December 1995, pp. 12-20.

JOI NT PRESS STATEMENT I SSUED ON THE CONCLUSI ON
OF THE VI SI T OF H. E. MOHTARMA BENAZI R BHUTTO,
PRI ME MI NI STER OF THE I SLAMI C REPUBLI C OF PAKI STAN
TO THE I SLAMI C REPUBLI C OF I RAN
6-8 NOVEMBER 1995

At the initation o l.L. lojjat-ul-lslam-al-Moslemin Akbar lashemi
Rasanjani, President o the Islamic Republic o Iran, l.L. Mohtarma Benazir
Bhutto, Prime Minister o the Islamic Republic o Pakistan paid an oicial
isit to the Islamic Republic o Iran rom 6th to 8th Noember, 1995.
2. 1he Prime Minister o the Islamic Republic o Pakistan was
accompanied by a high leel delegation comprising Ministers, Parliamentarians
and senior oicials. During their stay in Iran, Prime Minister Mohtarma
Benazir Bhutto and her entourage were accorded a warm cordial welcome,
characteristic o the close brotherly relations existing between the two raternal
countries.
3. 1he Prime Minster o Pakistan and her accompanying entourage
isited the holy city o Mashhad and paid homage at the shrine o lazrat
Imam Reza ,A.S,. 1hey also isited the mausoleum o the Leader o Islamic
Reolution and the lounder o the Islamic Republic o Iran, Imarn Khomeini,
to pay their respects.
4. During her isit Prime Minister Mohtarma Benazir Bhutto met with
the Speaker o the Islamic Consultatie Assembly ,Majlis, l.L AIi Akbar
Nategh Nouri and exchanged iews with him on matters o mutual interest.
Prime Minister was also accorded the unique honour o addressing the Islamic
Consultatie Assembly.
5. 1he President and the Prime Minister underscored the historical and
religious bonds between the two countries which sered as a oundation or
the urther strengthening and expansion o bilateral as well as multilateral
cooperation.
IPRI lactile 8
6. 1hey exchanged iews on the entire spectrum o bilateral relations.
1hey also discussed regional deelopments and international issues o
common concern. 1he discussions were held in a warm and riendly
atmosphere, marked by complete understanding and commonality o iews.
. 1he two sides noted with satisaction the increase in bilateral trade
olume during 1994-95 and stressed the need or urther consolidation o this
positie trend. In the ield o economic cooperation, they expressed their
appreciation or the speed with which the major bilateral economic projects
such as the oil reinery and gas pipeline were moing orward. 1hey also noted
the progress made on the bulldozers, sugar, cement plants deal and elt that
their early inalization would gie major boost to industrial collaboration
between the two countries.
Both sides stressed the need or promotion o cooperation between
the priate sectors, especially the chambers o commerce and industries o the
two countries.
8. During the isit the ollowing documents were signed:
- Agreement on Reciprocal Promotion and Protection o
Inestments.
- Agreement on the Maritime Commercial Naigation.
- Agreement on the Lstablishment o Joint Business Council ,JBC,.
- M.O.U. or Cooperation in the ield o \omen Sports.
- M.O.U. or the reiew o the implementation o the Joint
Lconomic Commission.
9. Both sides welcomed an increase in the exchange o delegations at the
leel o leads o States,Goernments, oicials as well as experts between the
two countries with a iew to urther deepen the bilateral relations.

10. 1he President and the Prime Minister reiterated their resole to
eliminate the traicking and smuggling o narcotics across the Pak-Iran border
and towards this end, agreed to intensiy cooperation and deise eectie
measures. 1hey also decided that during the orthcoming isit o the interior
minister o Iran to Pakistan, these issues should be considered as is other
matters o mutual interest.
11. 1he two sides reairmed their commitment to the goals and
objecties o LCO. 1hey recalled with satisaction the outcome o the historic
LCO Summit, held in Islamabad in March 1995, leading to the signing
agreements or the establishment o seeral LCO institutions. Noting the
importance o these institutions or LCO to unction as an eectie
instrument o regional cooperation, they stressed the need or their early
establishment. In this context, they underlined the need or the member states
to complete the ratiication procedures as soon as possible. 1hey issued the
hope that this process would be completed beore the lourth LCO Summit to
be held in Asghabad in April 1996.
12. Both sides stressed the importance o bilateral cooperation in
bolstering mutually beneicial trade and economic links with Central Asian as
well as the expansion o regional economic cooperation as a major element
not contributing to regional peace and stability.
13. 1he regional situation constituted a major topic in the talks o the two
sides. 1hey stressed the importance o preseration o peace and tranquillity in
the Indian Ocean as well as the Persian Gul by the states. Both sides noted
that all major problems and dierences in the region must be peaceully settled
by the regional states or the maintenance o peace and stability.
14. Both sides expressed their commitment to a just and comprehensie
solution to the Middle Last problem, which would enable the Palestinians to
establish their own independent state. \hile supporting the legitimate
aspirations o the people o Palestine or the liberation o their homeland, they
called or the acation o all occupied Arab and Palestinian territories including
Al Quds Al Shari.
15. Both sides expressed their concern oer the continuation o the
internal conlict in Aghanistan and called or a just and equitable political
settlement in accordance with the aspirations o the Aghan Muslim people
1hey also agreed to persuade the warring actions in Aghanistan to aoid
urther bloodshed so that the people o Aghanistan could deote themseles
to the reconstruction and rehabilitation o their country. 1he two sides also
agreed to continue consultations on the situation obtaining in Aghanistan.
16. 1he two sides discussed the situation in Bosnia-lerzegoina and
condemned the ethnic cleansing, genocide and massie human rights
iolations to which the people o Bosnia-lerzegoina hae been subjected.
1hey called or the trial and punishment o all those ound guilty o serious
crimes in Bosnia-lerzegoina. 1hey urther called or a complete restoration
o peace in Bosnia-lerzegoina and stressed that any settlement to be just and
durable must guarantee the territorial integrity, political independence and
soereignty o Bosnia-lerzegoina. 1hey considered as unjust and illegal the
U.N. arms embargo against Bosnia-lerzegoina and demanded its liting to
enable the people o Bosnia-lerzegoina to exercise their inherent right o
sel deence. Both sides while reiterating the continuation o their relie aid to
the people o Bosnia-lerzegoina, called or the more actie participation o
Islamic countries in peacetime deelopments as well as reconstruction o
Bosnia-lerzoina.
1. On Kashmir, the two sides exchanged iews and concluded that the
oppression to which the people o Kashmir were subjected remained a source
o tension in the region 1he two sides reiewed the latest deelopments in the
moement or sel- determination by the people o Kashmir and realization o
their wishes. 1hey underlined the importance o inding a solution to the
Kashmir problem in accordance with the releant United Nations resolutions
and through meaningul negotiation. President lashemi Rasanjani`s
IPRI lactile 10
mediation eorts were welcomed by Prime Minister Mohtarma Benazir
Bhutto.
18. 1he two sides deplored the aggression committed against the
Republic o Azerbaijan, the occupation o Azeri territories and the explosion
o hundreds o thousands o Azeri people and emphasised that steps be
reersed. \hile expressing their satisaction on the establishment o a ceaseire
between the Republic o Azerbaijan and Armenia, they called upon the
international community to be orthcoming in proiding assistance or the
relie and rehabilitation o Azeri reugees.
19. Both sides noted with satisaction the process o normalization taking
place in 1ajikistan. 1hey reairmed that the inter-1ajik dialogue was the only
means o reaching a peaceul accord. Both sides while emphasizing the
necessity o expediting the holding o the ith round o inter 1ajik talks
expressed their support or the UN peace eorts, as well as o concerned
parties, necessary or the completion o the negotiating process. 1he two sides
underscored the importance o national reconciliation. 1ajikistan and agreed to
coordinate their eorts in this regard. 1hey also stressed the importance o
eorts by the obserer states concerned with the crisis in 1ajikistan to
accelerate the peace o talks.
20. Both sides called or reorms o the Security Council and in context
emphasized the importance o expansion in the membership o council based
on the principles o soereign equality o states` and equitable geographic
distribution` o seats. 1hey also emphasized that such expansion should not
lead to the perpetuation o existing anomalies and creation o new centres o
priilege. 1hey recalled in this context, the releant paragraphs o the NAM
Summit Communiqu issued at Cartagena recently.
21. 1he two sides reairmed their commitments aimed at total
elimination o nuclear arsenals and other weapons o mass destruction and
strengthening o the non-prolieration regime at the global and regional leel.
1hey called or intensiying o international eorts to acilitate the application
o nuclear energy or peaceul purposes. 1hey emphasized the need or
enhancing the security o non-nuclear weapons states against the use or threat
o use o nuclear weapons and called or the establishment o nuclear-ree-
zones in arious parts o the world including the Middle Last South Asia.
22. Both sides discussed and exchanged iews on the role o the Islamic
Conerence Organisation in international deelopments. 1hey stressed the
need or urther consultation and cooperation among Islamic countries to
conront the cultural and political onslaught against the Islamic \orld.
23. 1he Prime Minister o Pakistan expressed her proound gratitude or
the warm and generous hospitality extended by the President lojjatoleslam
Akbar lashemi Rasanjani, the Goernment and the people o the Islamic
Republic o Iran during her isit.
24. 1he Prime Minister, Mohtarma Benazir Bhutto extended an initation
to President lis Lxcellency lojjatoleslam Akbar lashenii Rasanjani to isit
Pakistan in 1996. 1he initation was cordially accepted. 1he dates or the isit
would be inalized through diplomatic channels.

oreigv .ffair. Pa/i.tav, Noember-December 1995, pp. 245-250.

STATEMENT BY FOREI GN MI NI STER SARDAR ASEFF AHMAD
ALI I N THE SENATE ON REPORTED SMALL SCALE US
COVERT ACTI ON PROGRAMME AI MED AT MODERATI NG THE
GOVERNMENT OF THE I SLAMI C REPUBLI C OF I RAN

Islamabad: January 1, 1996.

It is correct that there hae been reports in the American media that the
Congress has passed a bill sanctioning > 20 m or what is described as small
scale coert action programme aimed at moderating` the goernment o the
Islamic Republic o Iran.
Iran is not only our neighbour but is a country with which we hae
deep rooted ties o culture, riendship and cooperation. Any such moe
against Iran will be a source o great anguish or the goernment and people o
Pakistan.
Pakistan has scrupulously ollowed a policy o strict non-intererence
in the internal aairs o all countries. It expects other countries to also adhere
to the same principle without which global and regional peace and stability will
continue to be an elusie dream. Such coert action would be a blatant
intererence in the internal aairs o a soereign country and would negate a
basic principle o interstate conduct. It would be a matter o particular concern
to Pakistan which enjoys close ties with the brotherly country o the Islamic
Republic o Iran.
1he United States as a global power has a special responsibility to join
other nations in the quest or international and regional peace and stability.
1he report about its alleged intention to interere in Iran is contrary to such a
goal. \e hope that no such action will be taken.
I must howeer, point out that the reported U.S. legislation is a coert
action bill on which we hae no authoritatie inormation beyond press report.
\hile we would condemn any intererence by any country in the
aairs o the brotherly Islamic Republic o Iran it would be unwise or an
august louse like ours to pass a resolution based exclusiely on reports in the
press o a third country.
\e also enjoy riendly relations with the U.S.A. \e hae maintained
that the continuing acrimonious exchanges between the U.S., the sole super
IPRI lactile 12
power and the Islamic Republic o Iran, an important power in our region is
not conducie to the maintenance o peace and stability. \e hae urged and
will continue to urge to resole their dierences peaceully. \e would be
prepared to assist in bringing about such a happy result.
I would propose that the louse haing discussed this matter adopt a
resolution urging the Goernment to continue its eorts to promote an
understanding between the two countries.

RLSOLU1ION OI 1HL SLNA1L ON 1HL RLPOR1LD US PLAN
1his louse notes that there hae been reports in the media that the US
Administration has accepted the proposal o the US Congress sanctioning > 20
million towards a coert action programme` aimed at what is described as
moderating` the goernment o the Islamic Republic o Iran.
1his louse hopes that these reports are untrue. Such an attempt at
blatant intererence in the internal aairs o a soereign state would be a
negation o the principles o interstate conduct and would be a matter o
particular concern to Pakistan, which maintains close brotherly ties with Iran.
1his louse also directs the goernment o Pakistan to try to promote
reconciliation through dialogue o the dierences between the USA and the
Islamic Republic o Iran.

oreigv .ffair. Pa/i.tav, January-lebruary 1996, pp. 143-144.

REPORT ON A VI SI T OF I RANI AN MI NI STER FOR PETROLEUM

Islamabad: 20 August 1996.

1he Iran Petroleum Minister Reza Aghazadeh paid a three day ,20-22 August,
isit to Pakistan at the head o a 10-member delegation.
During the isit, Mr. Aghazadeh held talks with his Pakistani
counterpart Anwar Saiullah Khan. 1he delegation also met Production
Minister Brig ,retd, Mohammad Asghar.
Soon ater arrial, Mr. Aghazadeh told the correspondents that the
U.S sanctions against Iran would not put the time-tested Pakistan-Iran ties in
jeopardy. 1his is a ery small political problem which should not become an
impediment in Pakistan-Iran relations.`
Reerring to his agenda o isit to Pakistan, he said matters relating to
the establishment o oil reinery and gas pipelines would dominate the talks.
le did not agree to a questioner that the inalisation o the two projects had
been delayed, saying the modalities or the projects would be inalised shortly.
1he Minister or Petroleum Anwar Saiullah Khan also brushed aside the
impressions about delay in the inalisation o multi-million dollar projects.
Massie inestment is inoled in the gas pipeline and reinery
projects and we are close to inalisation o their modalities, Mr. Saiullah said.
1he two countries hae already made some progress in laying 1600-
kilometer long gas pipeline rom Iran to Pakistan. 1he approximate cost o the
project is estimated at oer three billion dollars. A joint stock company has
already undertaken preliminary work on the project.
Another project is the establishment o a Pakistan-Iran oil reinery
near lub in Balochistan at a cost o 1.2 billion dollars.
1he Iranian delegation led by Oil Minister Gholam Reza Aghazadeh
called on President Leghari at the Presidency on August 20. 1he delegation
discussed with him the matters relating to economic cooperation between the
two countries.
President Leghari told the isiting Iranian Oil Minister that Pakistan
looks orward to the improement o communication links between Pakistan
and Iran. Iran and Pakistan need upgrade their riendly relationship in a
meaningul way at the political and emotional leel`.
President Leghari told the Iranian Oil Minister that Pakistan is looking
orward to the extenuation |extension| o Iranian railways up to Zahidan to
urther accelerate and improe the communication links between the two
countries.
1he President said that Pakistan would like pursue all projects under
way between Iran and Pakistan such as supply o gas rom Iran. le said that
Pakistan also welcomes the signing o an agreement or the supply o gas rom
Iran to 1urkey.
le said that the two countries could urther expand their cooperation
in seeral areas especially in the energy and communication sectors. le said
that Pakistan was buying Iranian bulldozers and haing an oil reinery rom
Iran while the equipment like cement and sugar plants were to be exported to
Iran.
\hile appreciating the iews o the President the Iranian Oil Minister
said that Iran was keen to proide gas and oil to Pakistan, and was also willing
to acilitate the supply o gas and oil rom Qatar, Oman or 1urkmenistan.
lederal Minster or Petroleum and Natural Resources, Anwar
Saiullah was also present at the occasion.
Mr. Aqhazadeh later called on Prime Minister Benazir Bhutto at the
Parliament louse in her chamber.
1he Prime Minister, on this occasion, emphasised the need to
enhance mutual cooperation and initiate joint Industrial entures.
She said such projects would not only beneit the industrial sector o
the two countries but also proide employment opportunities.
Mr. Aghazadeh coneyed Iranian President`s best wishes to Ms.
Bhutto. She reciprocated and asked the minister to coney her regard to the
President Ali Akbar lashemi Rasanjani.
IPRI lactile 14
1hey also discussed the progress on two joint entures, Pakistan Iran
reinery and gas pipeline between Pakistan and Iran.
lederal Minister or Petroleum and Natural Resources Anwar
Saiullah Khan, Iranian Deputy Minister o Oil, Dr. Nejad losseinien, and
Iranian Charged` Aairs in Pakistan Mr. Jalal Kalantari were also present
during the meeting.

oreigv .ffair. Pa/i.tav, August 1996, pp. 88-90.

MEMORANDUM OF UNDERSTANDI NG, I SSUED AT THE
CONCLUSI ON OF THE 10TH JOI NT ECONOMI C COMMI SSI ON
BETWEEN THE I SLAMI C REPUBLI C OF I RAN AND THE
I SLAMI C REPUBLI C OF PAKI STAN

1ehran: July 15, 199

a. Upon the initation o l.L. Akbar 1orkan Minister o Roads and
1ransportation o the Islamic Republic o Iran. l.L. Sartaj Aziz Minister o
linance and Lconomic Aairs o Pakistan, heading an Oicial delegation paid
a isit to Islamic Republic o Iran rom 12 to 15 July 199 corresponding 21 to
24 1IR 136:
b. l.L. Mr. Sartaj Aziz, Minister o linance and Lconomic Aairs o
Pakistan during his stay in 1he Islamic Republic o Iran called on l.L. Ale-
Lshugh, Minister o commerce and l.L. Mohammad Khan, Minister o
linance and Lconomic Aairs.
c. \hile paying a isit to holy shrine o Imam Khomeini, the late great
leader o Islamic Republic o Iran, l.L. Sartaj Aziz laid a wreath on the shrine.
d. 1he heads o the two sides o the joint economic commission, white
expressing their appreciation o the eorts o l L Mr Muhammad Lsmaeil
Ghancmmaghami and l. L. Mr. Jaed Build, the two coordinators or
Lconomic Relations between the two countries during the meeting and ater
holding long and comprehensie discussions and negotiations as well as
reiewing preious decision arried at agreement in a cordial and brotherly
atmosphere as ollows:

I. 1ransportation Communication And Lngineering And
1echnical Affairs
1. Both sides agreed to proide necessary acilities or passage o
Pakistani and Iranian trucks, orthwith and in accordance with Article o the
Agreement on Bilateral Road 1ransportation dated 29th July 198. It was also
agreed that the irst meeting o the Joint Commission proided in Article 13 o
the Agreement on Bilateral Road transportation be held within the next two
months.
2. Both sides agreed to inalize within two months operational
modalities or transportation o cargo and passengers to dierent cities in Iran
such as 1ehran, Mashhad, Bandar Abbas etc or Pakistani transporters and
dierent cities in Pakistan such, as Lahore, Karachi, and Islamabad Rawalpindi
etc or Iranian transporters.
3. Both sides re-emphasized that in order to acilitate Road 1ransport
operations between each other, experts o the two countries should meet in
1ehran within the next two months in order to discuss an international
transportation agreement.
4. lor resoling the existing rail transportation problems, the two sides
noted that a joint committee consisting o Iranian and Pakistani experts had
already been established. It was agreed that the committee should meet eery
six months.
5. Both sides agreed that all the outstanding payments regarding railways
be mutually settled in the next session o the committee.
6. Iranian side requested Pakistan Railways to supply empty wagons
regularly, so that at any time goods could be transported without delay. 1he
Pakistani side agreed and requested the Iranian side to expeditiously arrange
loading and unloading o these wagons and dispatching them to Pakistan
Railways, so that they could be sent back again or use by Iranian Railways.
. Since Kerman Zahedan railway is under construction, Iranian side
requested that Pakistan Railway arrange promptly or upgrading o 1atan-
Quetta corridor according to the existing standards. 1he Pakistani side agreed
that this would be done.
8. Iranian side asked or promotion o quality and welare acilities or
passenger trains including, water supply, power supply and welare acilities by
Pakistan Railways. 1he Pakistani side proposed that this be implemented
through the experts committee.
9. Iranian side put emphasis on arranging a schedule or passenger
traic. 1he Pakistani side elt that this was also a it ease or the experts
committee.
10. Since Kerman-Zahedan railway will be connected in the uture, and
this will bring opportunity or transit transportation to be carried rom Central
Asian countries to Pakistan and Vice-Versa Via Iran, both sides emphasized
the need or coordinating their polices or transit traic. It was agreed that
representaties o the two railways would take necessary action in the respect.
11. 1he Pakistani side indicated the need or reision o agreed tari on
account o charges or operating trains on Kohe 1atan-Zahidan sector. Both
sides agreed that the matter be discussed and inalized in the next meeting o
railway experts.
IPRI lactile 16
12. 1he Pakistani side reiterated interest o the Pakistan Railways to
rehabilitate and repair diesel engines and traction motors in Iran. Such work
done earlier was to the satisaction o Iranian railways. 1he Iranian side
serices its interest in the proposal and stated that in case o utilizing oreign
serices or rehabilitation and repair o diesel engines they will consider the
Pakistani side.
13. Pakistani side reiterated their request that PIA should be treated at par
with other airlines as regards the exchange rate ,>,lran Rial, or settlement o
arrears o oer lying charges. 1his was agreed to by the Iranian side in a
meeting held between Iranian Minister o Road and 1ransportation and
Pakistani loreign Secretary. 1he Iranian side had explained that PIA was, and
had been treated exactly the same as other airlines.
14. 1he Pakistani side Iranian side raised the long pending issue IRISL`S
claim ,20,000 USD, and asked or urgent payment o the K.S.L.\ share which
is the amount o 1, 45,000 USD.
1he Pakistani side promised to respond within a period o two
months.
15. Outstanding payments o the Iranian construction companies were
put orward. 1he Pakistani side assured the Iranian side that the outstanding
payments will be settled not later than September 199.

II. Lconomic, 1rade and Banking:
16. 1he parties emphasized the necessity o expanding cooperation
between the two countries with respect to technical, engineering and
contractual serices. In this connection the Pakistani side was proided with a
list o the Iranian side`s capabilities or implementing dierent productie,
inrastructural, industrial and agricultural projects and consulting serices. It
was agreed that the Pakistani side shall proide necessary acilities or the
actiities o Iranian technical and engineering institutions and irms in
Pakistan.
1. 1he Iranian side expressed its readiness to encourage Iranian
industrial and inesting institutions,irms to participate in implementing
productie and proitable projects in Pakistan. It was agreed that the Pakistani
side shall present a list o its productie and proitable projects, suitable or
oreign inestment, to the Lmbassy o the Islamic Republic o Iran in
Pakistan, while the Iranian party shall announce and introduce the said
inestment projects to its inestors and encourage them to inest in those
projects.
18. 1he two sides reerred to paragraph 3 o the M.O.U. dated January
22, 199 on the second joint reiew o the implementation o the decisions o
the 9th meeting o the Joint Commission and emphasized the need to hold the
irst meeting o the Joint 1rade Committee within two months.
19. 1he Iranian side agreed to the Pakistani proposal or cooperation on
conducting market surey or pharmaceutical products in Iran.
20. 1he two sides agreed on the need to inalize the drat agreement on
aoidance o double taxation which was presented to the Pakistani side in
1995. 1he Pakistani side explained that in its iew, a meeting be arranged
between the experts o both countries in order to inalize the agreement and it
was agreed that such meeting be held within two months.
1he two sides placed emphasis on the need to implement measures to
ensure a better balance in trade between the two countries.
21. Since the Joint Business Council ,JBC, agreement has been concluded
between Iran Chamber o Commerce, Industries and Mines and lederation o
Pakistan Chambers o Commerce and Industry, both sides emphasized the
need to urther actiate the aboe mentioned chambers.
22. Both sides emphasized the necessity o establishing Joint 1rade
Committee between the Chamber o Zahedan and Chamber o Quetta. 1hey
also agreed to take necessary measures to expedite the establishment o such
committee.
23. Both sides emphasized the deelopment and control o border trade
and agreed to ask the Joint 1rade Committee to expedite its examination o
the issue.
24. Both sides agreed to reer to the Joint 1rade Committee the issue o
abiding by the stipulations o the L,C opened in each other`s aour especially
the matter o perormance bond guarantee.
25. Both sides agreed to participate continuously in the international airs
held in both countries and to encourage their irms and enterprises to hae
actie participation in such airs. lurther both sides agreed to extend to each
other necessary acilities to hold single country trade airs in each others
country with the right o selling in accordance with the rules o both countries.
26. Both sides expressed their satisaction oer the smooth unctioning o
settlement o trade within Asian Clearing Union, emphasized the
strengthening and expansion o the Union or urther regional monetary
cooperation and agreed to reer this issue or detailed study by the joint trade
committee.
2. \hile examining the causes or under utilization o the US>50 million
reciprocal credit the two sides agreed that the administratie restrictions
imposed on Iranian and Pakistani traders preenting utilizing o the credit be
studied in the next meeting o the Joint 1rade Committee. 1he two sides
agreed that the mutual credit agreement be extended.
28. 1he Pakistani side stated that trade and commerce would lourish
between the two countries i Pakistani banks were reciprocally allowed to open
branches in Iran.
29. 1he Iranian side stated that in order to promote trade and exchange
o goods between the two countries and acilitate payments, the Lxport
IPRI lactile 18
Deelopment Bank o Iran ,LDBI, had established correspondent banking
relations with labib Bank o Pakistan.
30. Also LDBI intends to oer the drat o a proposal or Banking and
Payment Arrangement ,BPA, in respect o granting buyers` credit, and
opening the reciprocal account within one month ater signing the BPA.
31. 1he Pakistani side expressed its readiness to sell rice to CSDC,G1C.
1he Iranian side while welcoming this proposal, agreed to purchase rice at
competitie prices and international terms and conditions.
32. 1he Pakistani side suggested that in order to promote trade between
the two countries Bank Markazi Iran may be requested to accept unsae
credit` or 120 days in case o imports rom Pakistan.

III. Industry, Mines and Power
33. Industry
33.1 Regarding the capabilities o the pharmaceutical industries o the
Islamic Republic o Iran and its announcement to supply to the Pakistani side,
it was decided that the Ministry o lealth o Pakistan examine the possibility
to register drugs produced by the Iran pharmaceutical industries export
company ,Pharmi co., in order to enable their import into Pakistan.
33.2 Regarding agreement reached in January 199 in Islamabad,
concerning supply o 486 bulldozers against 50 cash and 50 sugar plant,
the Pakistani side, haing reerred to the meeting o lis Lxcellency Mr. Sartaj
Aziz with Iranian Ambassador and with respect to the poor inancial status o
Pakistani Goernment, requested that the aboe mentioned agreement should
not be ollowed up.
33.3 1he two sides reiewed the status o Iran-Pakistan Industries ,PV1,
Ltd. and agreed that the best course o action would be to adertise or sale
both the mills ,L1M and B1M,.
1he Iranian side while agreeing in this course o action said that the
amount they had spent on BMR o B1M ,approximately US>3 million, would
be reunded to them rom the proceeds o priatization. 1his would be in
addition to the immediate reund o about >1 million paid by them in cash or
BMR o the Uthal project.
1he Pakistani side accepted this proposal in principle subject to
eriication through a special audit o the work done and the actual amount
spent.
1he Iranian side agreed to complete the work in hand at the B1M
within one month and then hand oer the actory to the Pakistani authorities
as soon as the audit o the BMR accounts has been completed, to acilitate
priatization.
1he, two sides agreed that in case priatization is not completed
within one year, the situation would be reiewed by the two sides. 1he
progress o priatization and settlement o Iranian account would be reiewed
by the two sides eery quarter.
33.4 1aking into consideration that representaties o both sides hae
already been nominated to the Lxpert Committee on Industry both sides
announced their agreement to hold a meeting o the aboe mentioned
committee within two months in 1ehran or Islamabad.
34. Mines
Both parties agreed that the issue o export o iron ore rom Iran to
Karachi steel mill, speciication wise and price wise, should be ollowed up.
1he Pakistani side stated that the Pakistani mill has inspected two ore samples
sent, and has ound o speciication materials in them. As this kind o ore is
currently being used in the Isahan mill the Pakistani side expressed its
readiness or joint inspection o the Iranian ore in Karachi mill labs which will
be aailable ater August 199.
Iranian side expressed its readiness to cooperate with Pakistani side in
supplying technical and engineering serices as well as proiding necessary
equipments or water and power industry o Pakistan. Saneer company related
to Ministry o Power rom Iran and \ater and Power Deelopment
Organization ,\APDA, rom Pakistan were identiied to hold direct
communication and to ollow agreed cases.
35. Power
35.1 Iranian side expressed its readiness to take part in operation o water
supply lines, water distribution networks as well as setting up water and sewer
iltration plants in Pakistan. Saneer Company related to Ministry o Power
rom Iran and \ater and Power Deelopment Organization ,\APDA, rom
Pakistan were identiied to hold direct communication and to ollow agreed
cases.
35.2 Iranian side expressed its readiness to take part in operation o water
supply lines, water distribution networks as well as setting up water and sewer
iltration plants in Pakistan.
Both sides expressed their willingness to exchange experiences on
logical application o energy technology as well as expanding usability o new
energy technologies especially in remote and rural regions.
35.4 Both sides expressed their readiness to examine the easibility o
setting up long and short term training courses in the ollowing ields: power,
water supply and sewerage.

IV. Oil and Gas
36. Natural Gas
36.1 1he parties expressed their satisaction at the cooperation between the
Ministry o Petroleum and Natural Resources, Sui Northern Gas Pipeline and
Sui Southern 1ransmission Corporation o Pakistan, National Iranian Gas Co
IPRI lactile 20
o Islamic Republic o Iran on the conceptual study` or the Iran-Pakistan
gas pipeline. \elcoming NIGC`s interest the Pakistani side pointed to the
impending priatization o the two Pakistani gas companies and a irm
proposal by a priate company or supply o 1urkmenistan gas at Multan and
expressed the hope that the results o the study would lead to the execution o
the Iran-Pakistan Gas Pipeline under competitie conditions and result in
economic deelopment and strengthening o relations in the region.
3. Petroleum
3.1 Both sides recognized that progress on implementation o the Iran Pak
Reinery had been held up or want o decision by the Pakistani side on a
guaranteed rate o return in this sector. 1he Pakistani side undertook to
expedite approal o its new Petroleum policy.
3.2 National Iranian Oil Reining and Distribution Company expressed its
readiness or cooperation with regard to distribution o oil products in
Pakistan, while taking into consideration the policies o Goernment o
Pakistan.
3.3 Both sides expressed their satisaction with execution o the current
contract or selling Petroleum crude ,20000 barrels per day, and both sides
expressed their readiness to continue proper trade exchange between National
Iranian Oil Company and Pakistani reineries.
3.4 Iranian side expressed its readiness to conclude an agreement or
export o petrochemical products to Pakistan, in competitie condition.

V. Agricultural Cooperation
38.1 Soil and \ater engineering, drainage, desalination o lands, irrigation
under pressure with emphasis on sprinkling system.

In this connection, Iranian side expressed willingness to cooperate
with Pakistani side in the ields o study and designing, transer o technology
and training.
38.2 Lxchange o aailable germplasm materials o the drought and blight
resistant arieties and exchange o research indings concerning the cultiation
o high quality rice arieties,
38.3 Systematic and sustainable cooperation on plant quarantine and plant
pests and diseases control with particular emphasis on the agents, requently
out bursting in the two countries. ln this connection, the two sides agreed to
consider signing Memorandum o Understanding, drat text or which will be
sent by the Iranian side to their Pakistani counterpart through diplomatic
channels.
38.4 1he Pakistani side proposed exchange o experience in date
cultiation and processing,
38.5 1he Pakistani side oered to share with its Iranian counterparts its
experience in ishing technology and boat building, warm water culture and
cold water trout culture and hatchery management.
38.6 1he Pakistan side was o the opinion that since both countries hae
the same stocks o ish, especially migratory species such as tuna and mackerel,
and oceanographic conditions are similar, the two sides can exchange statistical
data on research, stock assessment and biological parameters o commercially
important ish species.

VI. Scientific, Cultural and Lducational
39. Both sides expressed their pleasure on the conclusion o the cultural,
scientiic and educational program between the two countries and agreed to
proide all necessary acilities or the implementation o it proision
40. 1he Iranian side proposed exchange o letter o understanding or
cooperation in the ield o telecasting between the broadcasting organization
o the Islamic Republic o Iran and Pakistan 1eleision Corporation. 1he
Pakistani side agreed with the proposal in principle. It was agreed that a
meeting in this regard would be held also between the authorities o the two
sides.
41. Both sides agreed to exchange inormation, experiences and expertise
in the ield o serice conditions, sel employment actiities, indiidual
household jobs and training in handicrats as well as ocational and technical
training. 1his would include planning, organizing, obseration and ealuation
in ocational and technical training.
42. Both sides agreed to render technical cooperation in the ields o
special short term training, setting up and deeloping training-employment
centres, equipping apprenticeship centres, preparing training sotware, to grant
training scholarships, to use mutual acilities or training o experts and
ocational and technical trainers.
43. 1he Pakistani side agreed to consider proiding 20 scholarships in
addition to the earlier quota to Iranian students. 1he Iranian side will proide
similar number to Pakistani students.
44. 1he Pakistani side agreed to examine the easibility o the admission
o 50 sel inancing Iranian students in medical courses on terms and
conditions to be settled later.
45. Both side agreed to acilitate the deputation o scientiic experts and
uniersity proessors to each other country. In such cases the accommodation
and monthly salary will be proided to selected person as per rules applicable
to such scientiic personnel in the host country.
46. Both sides stressed on mutual cooperation in the ield o sports,
especially women`s sports, as well as in exchange o experience and Joint
Organization o sporting eents and cooperation at the international leel. It
IPRI lactile 22
was agreed that the physical education organization o the Islamic Republic o
Iran and Ministry o Sports o Pakistan take necessary action towards
realization o the aboe policy.

VII. Customs and Visa
4. 1he two parties agreed that their concerned customs authorities sign a
memorandum o understanding whereby customs cooperation on transit,
exchange o customs laws and regulations and inormation o the methods o
preention o smuggled goods and drugs, and on other customs issues, be
exchanged.
48. Both sides agreed to make early arrangements to issue multiple entry
isas or traders, businessmen, priate engineering planning companies and
irms that are identiied by the respectie chambers o commerce o the two
countries in order to enhance the leel o trade exchange.
4.9. Both sides agreed that the ollow up meeting o the coordinator
authorities o the economic relations o both sides be held in 1ehran in March
1998.
1he 11th session o Islamic Republic o Iran - Pakistan Joint
Lconomic Commission will be held in Islamabad in September 1998 on
mutually agreed dates.
Both sides emphasized the need to take necessary steps or speedy
implementation o the decisions contained in the MOU`s signed on the
conclusion o JMC.
1he list o both side`s delegation members is attached hereto as annex
I.

1his Memorandum o Understanding has been prepared and signed in
1ehran on 15 July 199 corresponding to 24 1IR 136 in two original ersions
in larsi and Lnglish. Both texts are equally authentic.

Sd!- Sd!-
or the Goernment or the Goernment
1he Islamic Republic o Pakistan 1he Islamic Republic o Iran
,Sartaj Aziz, and Minister or linance ,Akbar 1orkan,
Lconomic Aairs Minister o Roads and
1ransportation

oreigv .ffair. Pa/i.tav, July 199, pp. 281-291.

MEMORANDUM OF UNDERSTANDI NG BETWEEN THE I SLAMI C
REPUBLI C OF I RAN AND THE I SLAMI C REPUBLI C OF
PAKI STAN ON COOPERATI ON I N THE FI ELDS OF TOURI SM
AND PI LGRI MAGE

1ehran: 11 May 1999.
In the Name o Allah
1he Compassionate, the Merciul
Ministry o Culture and Guidance o Islamic Republic o Iran and Ministry o
Culture, Sports, 1ourism and \outh Aairs o the Islamic Republic o
Pakistan ,hereinater reerred to as Both Parties,, in the light o mutual desire
or expansion o the cordial relations as well as strengthening and deepening
o the understanding existing between the two Countries, in order to deelop
their cooperation in the ields o tourism and pilgrimage hae agreed as
ollows:

AR1ICLL-J
Both parties shall encourage their nationals to isit each other`s country and
shall hold tourism exhibitions in one another`s country or the introduction o
their touristic altercations.

AR1ICLL-2
Both parties by introducing some trael agencies rom their respectie
countries to one another and initing the managers o such trael agencies to
meet their counterparts, shall urther acilitate mutual cooperation on
exchange o pilgrim and tourist groups as well as tours or the youth.

AR1ICLL-3
Both parties, while cooperating with each other in international tourism
organizations, conerences and seminars, shall introduce the touristic
attractions o one another in such orums where the other party does not
attend.

AR1ICLL-4
Both parties, while exchanging pilgrim and tourist groups, shall proide
necessary acilities to the pilgrims and tourists o the other party in such ields
as customs ormalities, issuance o isa, accommodation, ood, etc.

AR1ICLL-S
Both parties, in order to expand their relations in the ield o tourism, shall
hold joint annual sessions between the related oicials and experts o their
IPRI lactile 24
respectie countries and work out concrete plans to implement the proisions
o this Memorandum o Understanding.

AR1ICLL-6
Both parties shall cooperate with each other on the exchange o inormation,
statistics, slides, photographs and adertising brochures o their pilgrimage and
touristic attractions.

AR1ICLL-7
Both parties, while actiely participating in international tourism exhibitions,
shall jointly introduce each other`s pilgrimage and touristic attractions.

AR1ICLL-8
Both parties, in order to expand their exchanges in the ield o tourism, shall
consider increasing the number o their lights and introducing new routes to
each other`s country.

AR1ICLL-9
Both parties by declaring the Islamic Republic o Iran and the Islamic
Republic Pakistan a tourist destination, shall establish joint tours.

AR1ICLL-J0
Both parties shall exchange instructors or the purpose o training in the ield
o tourism between the related organizations and institutions o the two
countries.

AR1ICLL-JJ
1his Memorandum o Understanding shall be alid or a period o ie years
and thereater or succeeding ie year periods unless one o the two parties
inorms the other o its intent to terminate it with an oicial note through
diplomatic channel three months beore the end o the period
Done at 1ehran on 21 Ordibeheshi 138 corresponding to 11 May
1999 in two copies in Persian and Lnglish both being equally authentic
In case o diergence o interpretation, the Lnglish text shall preail.
lor Ministry o Culture lor Ministry o Culture,
and Islamic Guidance o Sports, 1ourism and \outh
Islamic Republic o Iran Aairs o Islamic Republic
o Pakistan
Sd. Sd.
,Mohammad Moezzodin, ,Jaid lusain,
President, Iran 1ouring and Ambassador o Pakistan
1ourism Organization, 1ehran

oreigv .ffair. Pa/i.tav, Vol. XXVI, Issue 4-6, April -June 1999, pp. 24-249.
MEMORANDUM OF UNDERSTANDI NG OF THE 11TH JOI NT
ECONOMI C COMMI SSI ON BETWEEN THE I SLAMI C REPUBLI C
OF PAKI STAN AND THE I SLAMI C REPUBLI C OF I RAN

Islamabad: 2 May 1999

In the Name o God
1. Upon the initation o his Lxcellency Mr. Ishaq Dar, the Minister or
linance and Lconomic Aairs, Goernment o the Islamic Republic o
Pakistan, l.L. Mr. Mahmud lojjati, Minister o Roads and 1ransportation o
the Islamic Republic o Iran, heading a high ranking oicial delegation, paid a
isit to lslamabad rom 26th to 28th May, 1999 corresponding to 5th to th
Khordad, 138.
2. lis Lxcellency Mr. Mahmud lojjati, Minister o Road and
1ransportation o the Islamic Republic o Iran, during his stay in lslamabad
was receied by lis Lxcellency Mr. Mohammad Ishaq Dar, Minister or
linance and Lconomic Aairs o Islamic Republic o Pakistan. le also called
on Minister or loreign Aairs, Minister or Communication, Minister or
\ater & Power arid the Minister or lood and Agriculture. 1he heads o the
two delegations to the Joint Lconomic Commission expressed their
appreciation or the eorts o the coordinators l.L. Mr. Zaheer Sajjad,
Secretary, Lconomic Aairs Diision and lL. Syed Masih Moemeni, Deputy
Minister o Road and 1ransportation or transport economy and the heads o
the three Committees.
3. Prior to the inaugural session o the Joint Lconomic Commission, the
two sides discussed arious issues o mutual interest in three committees. 1he
committees dealt with the ollowing subjects:
a, Committee-A 1ransportation and Communications.
b, Committee-B linance, Lconomic Aairs, 1rade, Agriculture and
lealth.
c, Committee - C Industry, Petroleum, Power and Mining.
4. Ater holding comprehensie discussions on arious issues, both sides
agreed as ollows:

1ransportation and Communications
5. 1o expand co-operation and to remoe the obstacles in the way o
road transportation between the two countries, it was agreed:
a, As per Article No. 13 o the present road transportation
agreement between the two countries, both sides will take
necessary measure or nomination o representaties to hold a
meeting o Join Commission within thirty days at Islamabad.
b, 1he aboe mentioned Commission will
IPRI lactile 26
i, Regulate the implementation o the present agreement
ii, Consider the proposals submitted by the Iranian side to
improe the present agreement.
c, Both sides agreed to orm a sub-committee o local road
transportation authorities under the auspices o the joint
Commission to resole day to day problems. 1he subcommittee
will meet quarterly.
d, 1he irst meeting o the aboe sub-committee will be held within
two months and a report will be submitted to the joint
commission.
e, Iranian side requested or more saety and welare acilities or all
Iranian ehicles and passengers plying in Pakistan territory and
the Pakistani side agreed to proide speciic places or their rest
and saety particularly in the Quetta region.
6. 1he Iranian party indicated the intention and readiness o the
companies or the execution o technical and engineering projects e.g. road
and bridge construction.
. \hile expressing satisaction oer the perormance o the Iranian
road and bridge construction companies in Pakistan, the Pakistani side assured
to gie preerence to the Iranian companies as compared with other oreign
companies proided they take part in open bidding on road and bridge
projects. On the request o the Pakistani side, the Iranian side agreed to accord
similar treatment to Pakistani organization in the telecommunication sector.
8. Both the sides agreed to a mutual exchange o tender notices or such
works through their respectie embassies.
9. Regarding outstanding dues to the Iranian Shipping Company rom
KSL\ and by the Iranian Ministry o Deence to the Goernment o
Pakistan, modalities will be settled within one month to clear these outstanding
amounts.
10. Recognizing the existing capabilities o both sides in the
telecommunication sector, it was agreed that inormation shall be exchanged in
order to arrie at some arrangement or the procurement o such serices
rom,by either side as agreed and also or collaboration in exporting to other
countries. 1he meeting o telecommunications experts will be held in the last
week o July, 1999 in 1ehran.

II. Aviation
11. Both sides signed the Air 1ransportation Agreement, which will,
howeer come into orce ater the ormal approal o the Goernment o
Pakistan, as per legal requirements is aailable.
12. Regarding the outstanding dues rom PIA, the Ciil Aiation
Organization o Iran quoted US> 4.5 million ,or the period April, 1992 to
June, 1994, as the amount due. 1he Pakistan side stated that the igure was
high and needed to be reconciled. Both parties agreed to inalize the amount
o the dues within three months. It was agreed that repayment equialent to
US> 8 million in the orm o serices will start immediately. I the serices
agreement o US> 8 million is not concluded within 8 months, PIA will pay
the balance o US> 8 million in cash within the next our months. 1he
dierence between the amount ,as mutually agreed, and US> 8 million will be
settled in the second year.

Railways
13. 1he two sides reiewed the rail transportation arrangement between
the two countries In iew o increasing traic it was agreed as ollows
a, Pakistan Railways will adequately maintain the existing 1atan
Quetta section to ensure that it can meet the traic requirements
up to the present design capacity ,about 500,000 tons per year,.
b, Pakistan Railways will consider to up-grade the Quetta-1atan
section to meet any increased requirements beyond the present
capacity based on a easibility study.
c, Pakistan side will gie preerence to Iranian companies interested
in the up-gradation o the Quetta - 1atan section when the
occasion arises proided the Iranian company participate in the
project on open competitie bidding basis.
14. 1o cope with international reight rail traic, the membership o
Pakistan Railways in SMGS and CO1Il conentions was emphasised. 1he
inormation and technical assistance in this regard will be proided by the
Iranian Railways enabling Pakistan Railways to take a inal decision.
15. 1o sole operation problems, and to acilitate mutual cooperation,
both the parties agreed on holding a meeting o joint committee o experts o
Iran and Pakistan railways once eery three months periodically in Zahidan
and Quetta. 1his committee will make its best eorts to expand rail
transportation.
16. In order to meet the traic demand, the Pakistani side agreed to
proide 300 wagons per month in a suitable condition with the traction power
required to pull about 1200 tones load subject to prompt loading o wagons at
Zahedan.
1. Both parties expressed their satisaction oer the cooperation o the
Lxpert Committee o both railways in the joint meeting dated May 20-21,
1999, held in Lahore and emphasized on the expansion o existing
cooperation.
18. Keeping the potential o wagon,locomotie manuacturing in both
countries in iew, both sides agreed to expand cooperation in order to
promote the quality o their products or exporting to third countries.
IPRI lactile 28
Iinance Lconomic Affairs
19. Both sides signed the ollowing agreements,documents or
cooperation in the Lconomic sector:
I. Agreement on the Aoidance o Double 1axation.
II. Memorandum o Understanding or Customs Cooperation.
20. \ith regard to the extension o US> 50 million reciprocal credit, it
was agreed that the Joint 1rade Committee ,J1C, should study the mechanism
and measures to make the credit mutually beneicial to the businessmen o the
two countries. 1he reial o the credit can then be considered in the light o
the recommendations o the J1C.
21. 1he Iranian side oered to inance projects to be executed by Iranian
technical, engineering and contracting companies. lurther details and terms
and conditions or Iranian credits will be examined and decided by the releant
agencies o the two Goernments.

1rade
22. Both sides expressed their satisaction oer the smooth unctioning o
Asian Clearing Union. It was agreed that Iran and Pakistan would project their
iews o enhancing the scope o ACU actiities in its Board o Directors. 1he
progress would also be monitored in the JLC.
23. In order to promote trade, the two countries shall encourage exchange
o trade delegations and holding o conerences and seminars.
24. Both sides agreed to participate in accordance to their respectie laws
and rules in the International and Specialized 1rade lairs held in both the
countries. 1he Iranian side agreed to consider the proposal o Pakistan to hold
a single country exhibition with the right to sell.
25. In order to promote economic cooperation between the two
countries, both sides agreed to share and exchange inormation on trade,
oreign trade policies, list o exportable goods, rules and regulations and other
economic inormation.
26. In order to expand and strengthen relations in the ield o trade, both
sides emphasized that the Joint 1rade Committee ,J1C, may examine the
desirability o concluding a new trade agreement or updating o the existing
trade Agreement o 1982.
2. 1he two sides expressed satisaction regarding the actiities o Joint
Business Council ,JBC, constituted between the Iran Chamber o Commerce,
Industries and Mines ,ICCIM, and the lederation o Pakistan Chambers o
Commerce and Industry ,lPCCI,. It was inormed that the 2nd meeting o
JBC is proposed to be held in October, 1999 in Pakistan. 1he exact date will
be decided through mutual consultation between the two Chambers.
28. 1he Iranian side expressed its willingness to consider purchase o rice
rom the priate sector in Pakistan on the basis o international competitie
conditions.
29. Both sides discussed the proposals or streamlining Border 1rade,
establishment o Joint Border Markets and measures to reduce smuggling. It
was agreed that these issues will be discussed in the orthcoming meeting o
Joint 1rade Committee ,J1C,. 1he iews o the concerned Proincial
Goernments o the two countries will also be sought in this matter.
30. Both sides agreed to hold the 2nd session o Joint 1rade Committee
in Islamabad in the 2nd week o September, 1999. 1he exact dates or the
,J1C, meeting will be worked out with mutual consultation.
31. Both sides expressed their readiness to inite their industrialists,
traders and trade institutions or inesting in each other`s ree trade,industrial
zone. 1o achiee this objectie, both sides agreed to create awareness on their
ree trade zones by organising seminars, holding o exhibitions and exchange
o inormation or interested traders and industrialists o both countries.
32. 1he Iranian side pointed out that they hae an adanced
manuacturing acility or trucks and buses and they would like to export these
to Pakistan. 1he Pakistan side desired to be proided additional inormation
on the detailed speciications and the price structure o the ehicles produced
by them to enable Pakistan to consider their oer.

V. Agriculture and Health
33. Both sides signed a Memorandum o Understanding or Plant
Quarantine.
34. Both sides agreed to promote co-operation in the ollowing areas:
i. Pakistan oered short term training courses, on cost basis, to
Iranian scientists in the ield o lood 1echnology 1ranser,
Lstimation o Genetic Parameters and use o Best Linear
Unbiased Production methods to estimate breeding alues o
uture parents, bualo management and production.
ii. Lxchange o scientists between the two countries.
iii. 1o collaborate in research projects in the ield o eeds and
eeding, theriogenology ,animal attening, and conseration o
genetic resources o arm animals.
i. Mutual co-operation in strategic planning or system-based animal
health research management. Both sides agreed to exchange
inormation on their respectie requirements.
. Iranian side would consider proiding training acilities in render
pest, monitoring and sureillance rom Iran Veterinary
Organization on cost basis.
IPRI lactile 30
i. Iran would consider Pakistan`s request or training on cost basis,
and transer o technology o sugar beet seed production.
ii. Iran would consider Pakistan`s request or proiding planting
material and related literature or improed arieties o temperate
ruits particularly date palms, grapes and apples.
iii. Iranian side noted the oer o Pakistan or training o two Iranian
oicers, each year, on cost basis, by the Department o Plant
Protection, in pest interception, identiication and umigation
procedures.
ix. Both sides agreed to promote 1raining Cooperation in the lield
o \ater Management.
x. Iran shall send a delegation on the initation o the Minister o
lealth o Pakistan to look into the possibility o bulk drugs
,pharmaceutical and raw materials, and accine manuacturing in
Pakistan. Pakistan shall acilitate the identiication o a local
counterpart, or joint entures, i required.

35. Both Goernments also agree on ollowing:
a, 1o co-ordinate eorts in training manpower or malaria control
and setting common preentie strategies in the use o
insecticides, impregnated bed nets and related enironmental
interentions.
b, Conduct inter-border malaria and polio control strategies as
adjacent communities in the border areas o both the countries
hae contacts.
c, Lxtend co-operation on conducting market sureys or mutual
import export o pharmaceutical and surgical instruments. 1he
Ministries o lealth o both the Goernments shall acilitate
market sureys and explore the possibility to register each other`s
drugs to enable their mutual import-export.
36. Both Goernments agree on the actiities consisting o mopping up
accination, conducted in all Districts bordering the two countries as well as in
other selectie populations which may lead to cross border transmission.

VI. Culture, Lducation and Manpower
3. 1he Iranian side agreed to expedite concurrence to the signing o
Cultural Lxchange Programme ,CLP, or the years 2000-2002 sent to them by
the Ministry o Culture, Goernment o Pakistan.
38. 1he Iranian side noted the ollowing proposals o the Pakistan
1ourism deelopment Corporation ,P1DC, or inestment by its priate
sector in Pakistan:
a, Beach Resort Kalmat Khor District Las Bella, Balochistan.
b, Inland \ater Related 1ourist Resort at lu Lake-Karachi.
c, Kawai-Shogran-Sin Pai - Makra - 1ourist Resort.
39. 1he Iranian side agreed to encourage its tourists to take adantage o
2001 Visit Pakistan` programme or promotion o tourism in Pakistan.
P1DC will proide inormation to the Iranian 1ourism Organization on
tourism opportunities in Pakistan.
40. 1he two sides agreed to examine the possibility o starting the
operation o a bus serice between Zahidan and Quetta and other destinations
in Pakistan.
41. Both sides agreed to oer each other 10 scholarships in their
respectie academic institutions and to maximize their utilization.
42. 1he Iranian side noted that Pakistan will send to their Ministry o
Culture and ligher Lducation, the admission acilities aailable in their
Uniersities,Institutions on sel-inancing basis. 1he Iranian side will also
proide inormation on similar acilities to the Ministry o Lducation in
Pakistan.
43. 1he Iranian side agreed to extend support to the Lmbassy o Pakistan,
1ehran in the celebration o Pakistan \eek in 1ehran in Noember, 1999
Pakistan side also agreed to extend support to the Iranian embassy in
Islamabad or celebration o Iran \eek in Pakistan.
44. Both sides agreed to exchange inormation on ocational training
acilities aailable on sel-inancing basis in arious ields.

VII. Gas and Petroleum
Iran-Pak Refinery
45. 1he Iranian side enquired on the status o guaranteeing minimum
25 rate o return or the project. 1he Pakistani side inormed that the
Goernment o Pakistan ,GOP, had now agreed to guarantee the minimum
25 rate o return to Pak-Iran Reinery as per proisions o the Petroleum
Policy 1994, within the stipulations o the LCC decision on this case dated
September, 1998. Both sides agreed that the mechanism or payment o the
stated 25 guaranteed rate o return by the GOP should be clearly deined in
the joint enture agreement between NIOC and PLRAC within two months.
1hereater, the project actiity should start immediately by pooling in initial
equity rom both sides. loweer, the Pakistani side pointed out that the
payment o 25 guaranteed rate o return would hae to be inalised within
the ramework o the LCC decision.

Lxport of Crude Oil by Iran to Pakistan
46. 1he Iranian side showed concern or suspension o oil imports by
Pakistan rom Iran since June 1998. 1he Pakistani side explained the speciic
economic conditions through which Pakistan had to pass and the terms it
requested rom Iran or credit sate o oil at that time. Pakistan had to suspend
the imports rom Iran, perorce, because o shortage o oreign exchange. 1he
IPRI lactile 32
Iranian side requested that Pakistan may now inorm them about the terms it
would require rom Iran i the oil supplies had to be resumed rom Iran.

Lxport of Natural Gas to Pakistan
4. 1he Iranian side was keen to know i Pakistan would agree as a prior
condition to extend the gas pipeline to India as that would bring economies o
scale to Iran and would be beneicial to Pakistan as well. Pakistani side
inormed that only a ew days earlier, the Iranian proposal was discussed
threadbare with high leel Iranian delegation that isited Pakistan in May 1999.
1he question o extending the pipeline also came under discussion at that
time. 1he Pakistani position was that it was not possible to make any such
commitment at this stage. loweer, it was important that the Iranian side
make a concrete proposal to bring gas up to Multan and quote competitie
prices and technical speciications. 1he Iranian delegation had agreed to send
the response to Pakistan within one month. 1he present meeting also
recognised the need or a irm response rom Iran in the near uture.

Lxport of Liquid Gas to Pakistan
48. 1he Pakistan side showed its interest to import LPG rom Iran, as it
would help in remoing shortage and also reducing the landed cost o LPG.
At present only Aga Gas Company was importing LPG on a small scale. 1he
Iranian side assured that Pakistan`s proposal would be considered and a proper
response would be proided shortly.

VIII. Industry
Lxport of Bulldozers
49. 1he Iranian side stressed that export o 1000 bulldozers rom Iran to
Pakistan was a long outstanding issue and should now be resoled in one way
or the other. 1he Pakistani side agreed to take up the matter at the appropriate
leel or a inal decision at an early date.

Production of Pride Cars in Pakistan by Sabia and Lxport of 2000 RHD
Auto Buses by Iran Automobile
50. Both sides agreed to consider and support a concrete proposal rom
the Iranian side or setting up a joint enture company or manuacturing. Kia
Pride cars in Pakistan.
51. Iran proposed that Iranian auto buses may be imported by Pakistan.
1he Pakistani side stated that the matter will be considered and the concerned
authorities will be consulted.

Lxport of Iron ORL of Chagharat Mines of Bafagh, Manganese and
Chromite
52. 1he Iranian side enquired about import o iron ore rom Iran. 1he
Pakistani side inormed that the matter was under consideration. Both sides
agreed that a committee o experts may be set up which may test the sample o
Iranian iron ore jointly. Iranian side agreed to send a three-member team o
experts to Pakistan Steel Mills or joint testing o the samples o Iranian iron
ore during June 1999.

Bolan and Lasbela 1extile Mills
53. Regarding the issue o payment o claims relating to the expenditure
on BMR by Bonyad, it was agreed that IPl should appoint a reputable irm o
proessional accountants by 30 June 1999 to determine the exact amount to`
be paid to Bonyad. 1he auditors should inalise their audit and report by 30
September 1999. 1he Board o Directors o the IPI should then take anther
month to consider and approe the report o the auditors. Since the IPI had to
pay the amount out o the impending priatisation o the units and since it was
eared that this process might take too long, the Iranian side insisted that
Board o Directors should settle the Bonyad claim by 30 April 2000. Ater
discussion it was decided that the Board should be asked to settle the Bonyad
claim by 30 June 2900. 1he Iranian side required guarantees that there would
not be any urther delays or deault rom the IPI to settle the agreed claim o
MS Bonyad. It was agreed that in such a case, the matter should be reerred to
respectie Goernments or a decision at the appropriate leel.
54. Both sides agreed that the State Lngineering Corporation ,SLC, o
Pakistan and Industrial Deelopment and Renoation Organization ,IDRO,
o Iran should co-operate or jointly designing and manuacturing o reineries,
petrochemical plants, power slants, cement actories, sugar plants, mining
equipment and other essels o dierent categories in both countries and in
third countries.
55. Both side agreed that the experts Committee on industry isualized in
the 10th Joint Ministerial Commission in July, 199 should now meet in two
months either at Islamabad or 1ehran. 1hereater, such, meetings should take
place once in eery quarter.

IX. Power
Llectrification of Border Villages of Pakistan
56. On the issue o electriication o border illages o Balochistan, the
Iranian side inormed that they were ready to proide electricity not only or
illages but or industrial purposes also. According to them, response rom the
Pakistani side was awaited. 1he Pakistani side clariied that concurrence or
import o electricity rom Iran had already been sent to the Iranian authorities.
IPRI lactile 34
Both sides agreed that a technical committee should be set up to work out
technical details.

X. General
5. Recognising that outstanding issues between indiidual organisations
and companies o the two countries remain unresoled or long periods, which
act as unnecessary impediment, to strengthening o cooperation, the two sides
recommend setting up o an eectie mechanism or resoling issues. lor this
purpose, the two Goernments may authorise their respectie designated co-
ordinators to ensure resolution o each issue and ollow up the decisions o
this meeting in a meeting which may be held in March, 2000.
58. 1his Memorandum o Understanding has been prepared and signed in
Islamabad on 2th May, 1999 corresponding to 6th Khordad, 138, in two
original copies, in Lnglish and Persian. Both texts are equally authentic.

lor 1he Goernment lor 1he Goernment
O 1he Islamic Republic 1he Islamic Republic
o Pakistan o Iran
SD. SD.
,MR MOlAMMAD ISlAQ DAR, ,MR. MAlMUD lOJJA1I,
MINIS1LR lOR lINANCL AND MINIS1LR Ol ROADS AND
LCONOMIC AllAIRS 1RANSPOR1A1ION.

oreigv .ffair. Pa/i.tav, Vol. XXVI, Issue 4-6, April -June 1999, pp. 250-262.

PROGRAMME OF CULTURAL, SCI ENTI FI C AND TECHNI CAL
EXCHANGES BETWEEN THE GOVERNMENT OF THE I SLAMI C
REPUBLI C OF I RAN AND THE GOVERNMENT OF THE I SLAMI C
REPUBLI C OF PAKI STAN, FOR THE YEARS 1999-2003

Islamabad: 29 July 1999

1he goernment o the Islamic Republic o Iran and the Goernment o the
Islamic Republic o Pakistan considering the religious, cultural and historical
ties between the two Muslims peoples o Iran and Pakistan, desirous to
expand and strengthen bilateral, cultural scientiic and educational relations,
inspired by the loty teachings o Islam, and based on the Cultural Agreement
o March 9, 1956 hae agreed as ollows.

CHAP1LR-J
Culture and Art

AR1ICLL-J
Both sides shall exchange inormation, experience, books and publications,
pictures and slides, ilms and microilms, in the ield o culture art, history,
literature, archaeology and architecture.

AR1ICLL-2
Both sides shall encourage joint research projects in archaeology, architecture,
anthropology, traditional arts and exchange o experts in new methods o
management in the museum.

AR1ICLL-3
1he national libraries o Iran and Pakistan shall exchange inormation,
experience books publications, microilms o manuscripts and experts and
trainees and shall participate in the book exhibitions, symposiums, workshops
or Libraries.

AR1ICLL-4
Both sides shall exchange books, publications, and ilms and hold ilm weeks.
1hey shall also participate in each other`s ilm estials and cooperate in
introducing the ilm products.

AR1ICLL-S
Both sides shall encourage joint production o motion pictures and proide
each other with necessary acilities or this purpose.

AR1ICLL-6
Both sides shall take the ollowing measures during the alidity o this
program:

b, |a| lolding o children`s books exhibition, artistic products,
handicrats and personiications, and original paintings printed in
the children`s books in each other`s countries or 15 days, and
c, |b| lolding o an exhibition o art, handicrats and calligraphy in
each other`s countries.

AR1ICLL-7
Both sides shall exchange isits o art groups or perorming programs. 1he
details shall be speciied through mutual agreement.

IPRI lactile 36
AR1ICLL-8
Both sides shall take necessary measures or identiying the areas o research
and becoming amiliar with each other`s culture, art and literature by holding
literary and art seminars, poetry recital meetings and exchanging artists and
researches.

CHAP1LR-2
Lducation, Science and 1echnology

AR1ICLL-9
Both sides shall oer 10 scholarships to each other annually in the ields o
social sciences, at the M.S. and Ph.D. leels ,At the present time the Iranian
side shall only use scholarships at the Ph.D. leel,.

AR1ICLL-J0
1he Iranian side shall oer one scholarship annually in the ields o Persian
Language and literature or study o doctorate degree in Iran to the teachers o
the Department o National Institute o Modern Languages, Islamabad. 1he
scholarships shall coer all expenses on trael, boarding and lodging by the
Goernment o the Islamic Republic o Iran ,IRI,.

AR1ICLL-JJ
1he Pakistan side shall oer two scholarships annually or study o Urdu
language and literature at graduate,post- graduate leel in Pakistan or
nominees o the Goernment o IRI on terms and conditions to be settled by
mutual consultation.

AR1ICLL-J2
1he Iranian side shall proide the serices o at least two teachers capable to
teach Persian at post - graduate leel in Lducational Institutions in Pakistan
on honorary basis or a period o two years. Lntire expenses on boarding and
lodging and trael shall be proided by Goernment o lRl.

AR1ICLL-J3
Both sides shall deelop academic linkages between the selected uniersities
or promoting research and teaching.

AR1ICLL-J4
Both sides shall exchange inormation on each other`s Secondary, ligher
Secondary and ligher Lducation systems to determine equialence o
certiicates, diplomas and degrees.

AR1ICLL-JS
Both sides shall exchange experts and expertise in the ield o examination and
allied ields in order to improe the system o examinations and the method o
controlling malpractices.

AR1ICLL-J6
Both sides shall encourage the participation o educationists, researcher, policy
makers and curriculum experts in the releant seminars and conerences.

AR1ICLL-J7
Both sides, in the course o the alidity o this programme, shall proide the
necessary acilities or technological cooperation between the releant centers
in the two countries.

AR1ICLL-J8
Both sides shall encourage to holding o a Seminar on lqbal, Sa`di and laiz in
each other`s country or enhanced interaction between scholars and
intellectuals o the two countries.
Both sides may translate documents,literature on culture and history
o both the countries and exchange the same with each other.

AR1ICLL-20
Both sides shall encourage joint research in the ields o culture, history and
social sciences as well as the exchange o scholars in these ields. Lach
Goernment will proide local hospitality to the scholars.

AR1ICLL-2J
Both sides, in the course o the alidity o this programme, shall exchange
delegations and experts in the scientiic, educational, health, treatment and
pharmacological ields on reciprocal basis.

CHAPA1LR -3
Mass Media
AR1ICLL-22
Radio and teleision o Pakistan and Islamic Republic o Iran Broadcasting
,IRIB, shall cooperate in arious ields including technical, programming,
news and training, etc. Details would be determined ater isits o respectie
delegates to both the countries. Some ields o cooperation can be as ollows:

a, Lxchange o documentary ilms, documents, microilms and
b, Photographs.
IPRI lactile 38
c, Using o the networks o the two countries or the broadcasting
and telecast o ilms relating to each other and production o
suitable programs.
d, Broadcasting,telecast o programs on the occasion o the special
days o either country.
e, 1echnical exchanges and cooperation including training acilities
or the program and engineering personnel according to aailable
resources.
, Production o joint programs about religious, cultural and
historical commonalties in the two countries.
g, Co- operation with regard to continuation o the unctions o the
representaties o Radio and 1eleision in both countries.

AR1ICLL-23
Both sides shall acilitate the unctions o reporters stationed in each country
regarding transmission o news and press actiities.

AR1ICLL-24
Both sides while expressing their desire oer expansion o cooperation
between their national News Agencies, stress the need or signing separate
agreements between IRNA and APP.
Both sides agree on proessional co-operation between their national
news agencies within the ramework o news, technical and training actiities
at the bilateral leel as well as in the context o the actiities o regional and
international news agencies.
Both sides shall proide necessary assistance and acilities to each
other`s resident, traelling and isiting correspondents.

CHAP1LR 4
Sports and 1ourism

AR1ICLL-2S
Both sides shall encourage tourism between the two countries by exchanging
inormation and experiences and proiding the necessary acilities and shall
also reduce ormalities or the isit o tourists taking into consideration the
releant laws and regulations.

AR1ICLL-26
1he Pakistan Institute o 1ourism and lotel Management ,PI1lM, Karachi,
presently imparting training in arious segments o lospitality and 1rael
1rade, shall welcome Iranians or training in its regular courses, proided
necessary unds are made aailable either by the sponsoring agency or by the
trainees themseles ,Details o the training courses being conducted by the
Institute shall be exchanged through bilateral channels,.

AR1ICLL-27
Both sides shall encourage reciprocal participation o teams o sport groups in
the Sports eents, international matches and estials held on dierent
occasion in both countries.

AR1ICLL-28
Both sides shall proide the necessary acilities or the promotion o Sports
through the exchange o books, publications, ilms and participation in the
sports seminars.

AR1ICLL-29
Both sides shall exchange inormation and experience in the ield o making
sports equipment and shall proide the necessary acilities or supplying the
sports items in both countries.

AR1ICLL-30
Both sides shall exchange trainers o the applied ields and shall hold training
classes or them and or the reerees in short-term periods.

CHAP1LR-S
Youth Affairs
AR1ICLL-3J
Both sides shall exchange youth delegations comprising members each, on a
reciprocal basis, during the alidity o this programme. 1he time and dates o
the isit shall be decided through mutual consultations.
1he sending side shall bear the expenses or international trael
,round trip, o youth delegation and the receiing side shall bear the cost o
local hospitality, including boarding, lodging, emergency medical care and
internal transportation related to the work o the isiting delegation.

CHAP1LR-6
Health

AR1ICLL-32
During the present programme, the two sides while exchanging the latest data
and scientiic indings, shall exchange researchers and experts inoled in
pharmaceutical products, medical treatment and medical equipment.

IPRI lactile 40
AR1ICLL-33
1he two sides shall cooperate in holding joint seminars and carrying out joint
research projects in the sanitation and medical ields

AR1ICLL-34
1he two sides shall cooperate in the area o irst-aid care and preentie health
serices especially in amilies through dispatching mutual experts groups or
the purpose o studying health serices systems o the two countries and
mechanism o ealuating and superising medical institutions.

AR1ICLL-3S
Both sides shall cooperate in the areas o medical training, medical and health
issues as well as exchange o experience especially in pharmaceuticals, accines
and their main raw materials.

CHAP1LR-7
Housing

AR1ICLL-36
1he Ministry o lousing and Urban Deelopment o the Islamic Republic o
Iran and the Ministry o lousing and \orks o the Islamic Republic o
Pakistan shall cooperate in the areas o planning & deelopment or housing
and ciil engineering with particular reerence to earthquake, constructing
technology, building material, manuacturing o construction equipment and
urban deelopment, etc. through the ollowing ways:
a, Lxchange o books and periodicals as well as related,releant
inormation and conening o specialized symposia, seminars,
workshops and exhibition, and
b, Lxchange o proessionals in the releant ields in order to get
amiliarized with each other`s technical and specialized capabilities
and also attending short- term training course.

CHAP1LR -8
General and Iinancial Provisions

AR1ICLL-37
1he articles o these programs shall not stop the perormance o the other
programs, which shall be agreed upon through the other ways o the
respectie countries.

AR1ICLL-38
1he actiities enisaged in these programs shall be carried out in accordance
with the rules and regulations o the respectie countries.
AR1ICLL-39
1he requests related to the research and scientiic reiews shall be gien to the
other side through the ormal channel at least two months beore the
proposed date. 1he requests should include the educational background o the
applicant, the duration o stay and the desired place or isiting.

AR1ICLL-40
1he exchanges during the currency o these programs shall be introduced by
the sending side through the ormal channel to the receiing side.

AR1ICLL-4J
1he costs o supplying ilms microilms and copies o the historical and
cultural documents shall be paid by the requesting country.

AR1ICLL-42
1he costs o transportation o delegates and isitors shall be paid by the
sending side and the costs o housing, ood and local transportation shall be
paid by the receiing side.

AR1ICLL-43
1he costs o transportation o the personal equipment o the art groups shall
be paid by the sending side and the costs o the housing, ood and local
transportation as well as suitable place o exhibition shall be paid by the
receiing side.

AR1ICLL-44
1he costs o transportation and insurance o exhibits to and rom the
receiing country shall be undertaken by the sending side, and the receiing
country shall pay or the local transportation and insurance. It shall also pay
or a suitable place or the exhibition.

AR1ICLL-4S
1he receiing country shall proide ree emergency medical care or
delegations and the sending side shall pay or the long-term period treatment
and important surgery operations.

AR1ICLL-46
1he scholarships will coer all expanses on studying, housing, transportation
and insurance by the receiing country. 1he costs o round trip air ticket, shall
be paid by the sending country. 1he aboe mentioned expenses shall be paid
on the basis o the current laws and regulations o the two countries during
the time o the exchange o the respectie students.
IPRI lactile 42
Done in Islamabad on the 29th day o July 1999 in two original
copies, in Lnglish and Persian, in 8 Chapters and 46 Articles, both being
equally authentic.
1his program shall come into orce rom the date o its signature or
our years.

oreigv .ffair. Pa/i.tav, Vol. XXVI, issue -8 July-August 1999, pp. 28-298.

I RAN' S FOREI GN MI NI STER: TEHRAN HAS NO DI SCORDS
WI TH I SLAMABAD ANY MORE

Ater the Goernment o Pakistan broke with the 1aliban, "serious
diiculties" that had marred relations between Islamabad and 1ehran o late
ceased to exist, Iran's loreign Minister Kamal Kharazi said on Saturday.
During his three-day isit to Pakistan, Kamal Kharazi met with Pakistan's
President Perez Musharra and held a round o consultations with his
Pakistani counterpart Abdul Sattar.
At a joint press conerence the two loreign Ministers announced that
their countries opened "a new era o cooperation". 1he Ministers also said
they want the parties taking part in the conerence on Aghanistan, currently
held in Bonn, to reach the consensus on the make-up o Aghanistan's uture
Goernment as soon as possible.
At the same time, according to diplomatic sources, the two sides still
dier with regard to the best candidates to the posts o Aghanistan's
President and Prime Minister. Iran supports Burhanuddin Rabbani, the current
leader o the Islamic State o Aghanistan, whereas Pakistan adocates the
candidature o Aghanistan's ormer King Zahir Shah, as the country's uture
President.

êr. frov Rv..ia, 1 December 2001
http:,,newsromrussia.com,world,2001,12,01,22651.html

PAKI STAN, I RAN AGREE TO LAY GAS PI PELI NE: TRADE TI ES
BEI NG CEMENTED

Pakistan and Iran hae agreed on construction o a multi-million dollar gas
pipeline between the two countries which would ultimately supply gas to India.
1he isiting oreign minister o Iran Dr Kamal Kharrazi told a news
conerence on lriday that a joint technical committee to be constituted will
prepare easibility study and suggest to both the goernments how to moe
ahead on the project.
A technical committee o the same nature already exists with India, he
said.
1he minister also hinted at resumption o wheat import rom Pakistan
and also to negotiate on quality rice rom Pakistan.
le described his talks with President Musharra and oreign minister
Abdul Sattar as substantie which would enhance trade and business
cooperation between the two countries.
It may be mentioned that Iran had cancelled an order o wheat import
this year due to poor quality wheat supply and had reused to talk or
resumption o the same.
le urther stated that both the sides also discussed transer o gas to
Pakistan and to upgrade leel o trade between the two countries.
A trade delegation rom Iran is due to arrie here next \ednesday to
open up talks on opening o new enues or inestment in Pakistan and joint
projects with Pakistan.
Both sides also discussed and agreed to enhance political and cultural
cooperation as Kharrazi said a building will be constructed to accommodate
the cultural actiities o both the countries.
Negotiations will also be held on proiding to Pakistan cargo wagons
or its railways.
1he 18-member high powered delegation which accompanied the
Iranian oreign minister also held negotiations with their counterparts in
ministries o commerce, economic aairs, communication and deence.
Iran and Pakistan agreed to enhance their cooperation in ield o
deence during a meeting between Iranian deputy deence minister and acting
deence secretary in ministry o deence.
Iranian deputy minister o deence Rear Admiral lamid Naslpak was
accompanied by his country`s oreign minister Dr Kamal Kharrazi, according
to an oicial press release.
lamid Naslpak is scheduled to isit Pakistan Ordnance lactories at
POl \ah on Saturday and will call on chairman POl.
Mr Sattar on this occasion claimed that Pakistan had doubled its trade
with Iran oer the recent years.

Darv, 1 December 2001
http:,,www.dawn.com,2001,12,01,top1.htm

NEW ERA I N PAKI STAN, I RAN TI ES

1he 1aliban's retreat rom Kabul has nudged Pakistan and Iran into ending
decade-old rosty relations and working to accommodate each other's strategic
and economic interests in Aghanistan.
IPRI lactile 44
Recently, at the end o a two-day isit to Islamabad, Iranian loreign
Minister Kamal Kharrazi in a joint news conerence with his Pakistani
counterpart announced that both countries had come closer on the Aghan
issue ater the remoal o the 1aliban, and hae agreed to help establish a
broad-based, multi-ethnic goernment under United Nations auspices.
Kharrazi said that though it was natural to hae minor dierences, the
major dierences on Aghanistan were mostly oer and now it was essential to
speed up and rebuild ties. "\e hae narrowed down our dierences in our
talks as we see that Pakistan has changed its policy and agreed to play a
collectie role in the reconstruction o Aghanistan," he said.
Pakistan's loreign Minister Abdul Sattar immediately added, "1he role
o Pakistan with regard to the 1aliban has been exaggerated as ar as its
inluence with the militia was concerned. 1he 1aliban had rejected Pakistan's
adice on the |destruction o the| Bamiyan statue issue, and then they reused
to agree when a Pakistan delegation isited Kandahar and Kabul to pursue
them to take a sensible path on the UN resolutions." le said, "\e hae now
got rid o the shadow o the 1aliban. 1he sun is shining and we will take ull
adantage o the situation to deelop bilateral relations."
A ormer oreign minister, Sartaj Aziz, agreed that the ouster o the
1aliban does remoe a major irritant between Iran and Pakistan. But he said
that there are still some dierences oer the deployment o multinational
orces in Aghanistan as Iran wants the orce under the umbrella o the United
Nations, but Pakistan is ready to accept one een i it is out o the United
Nations.
In truth, howeer, Aziz added, "In the uture shaping o things in
Aghanistan both countries do not hae much role to play. Pakistan has been
saying repeatedly that it is or the Aghans to decide about their uture. So now
the enironment is conducie to enhance economic and commercial
cooperation," he explained.
Perez Iqbal Cheema, president o the Islamabad Policy Research
Institute ,IPRI, said in an interiew that the main dierence between Pakistan
and Iran was oer how to accommodate each other's interests oer
Aghanistan. 1he impression coming out o the recent meetings between
isiting Iranian team and Pakistani oicials indicates that these dierences
hae been remoed to a considerable extent.
"1he dierences touched their lowest ebb in 1998," Cheema said,
when the 1aliban captured the Aghan city o Mazar-e-Shari and some
Iranian diplomats were killed. Iran indirectly blamed Pakistan, thinking that it
had considerable inluence oer the 1aliban. "But the act is that Pakistan's
inluence oer Aghanistan was exaggerated by Indian propaganda, which
wants to project Pakistan as a undamentalist state by linking it with the
1aliban," Cheema argued.
O the six countries circling Aghanistan, Pakistan shares the longest
2,450 kilometer border with it, ollowed by 1ajikistan with 1,206 kilometers
and Iran with 936 kilometers. Pakistan's Pashtun population also has strong
ainities with majority Pashtun population o Aghanistan.
Pakistan-Iran dierences date back to 1988, when the Soiets
withdrew rom Aghanistan and Iran or the irst time tried to bring in a Shi'ite
political group, lizb-e- \ahdat, into power sharing in Kabul. 1he Shi'ite sect,
a Muslim sect in Aghanistan, is adhered to by the lazaras, an ethnic minority
that the 1aliban has been accused o discriminating against and isolating.
Shi'ite Iran, thereore, neer recognized the Sunni ,sect, and Pashtun 1aliban,
and instead supported the Northern Alliance.
Another area o disagreement is the route or the laying down o oil
and gas pipelines and rail links rom the land-locked Central Asian republics to
the ports o Pakistan or Iran ia Aghanistan. Islamabad claims that the
Karachi port is the nearest link, while 1ehran says it is Bander Abbas.
Sectarian killing in Pakistan, which had led to some Iranian diplomats and
citizens being killed, had also soured ties.
Political dierences between Iran and Pakistan oershadowed
economic cooperation as well. In the mid-0s, Pakistan, Iran and 1urkey
ormed a regional economic bloc. 1his was expanded in May 1992 and nine
countries including Pakistan, Iran, 1urkey, Aghanistan and newly independent
Central Asian republics o Kazakhstan, Uzbekistan, 1urkmenistan, Kyrgyzstan
and Azerbaijan ormed the Lconomic Cooperation Organization ,LCO,, with
a population o 300 million. 1his aimed to boost economic cooperation, trade
and communication links in three important regions o the Asian continent -
Central, \est and South Asia. Six summits o the heads o member states hae
been held, but the war in Aghanistan and Pakistan-Iran dierences remained
a stumbling bloc to the LCO.
1he proposed pipeline project carrying Iranian gas through Pakistan
to India also remains a non-starter. But a ray o hope emerged when Kharrazi
announced that a joint technical committee would prepare a easibility study
or the Iranian pipeline and suggest to both goernments how to moe ahead
on the project. 1he project is only iable i it is extended up to Pakistan's arch-
rial India, as Iran stands to make US>3.06 per MMB1U ,million British
thermal units, o gas sold to India, but would get only >1.48 i the commodity
does not go beyond Pakistan.

Pakistan itsel had hoped to earn about >14 billion in 30 years rom
the project, including >8 billion in transit ees, >1 billion in taxes and >5 billion
in saings.
Said the Lnglish-language daily 1be âtiov, "1he two countries hae a
lot o healing to do. 1he rigidly sectarian ace o 1aliban goernment, iewed
IPRI lactile 46
by some as a surrogate o Pakistan, was not the only irritant in the relationship.
It has been down hill or some time."
Apart rom sectarian iolence in Pakistan and rialry oer pipeline
plans, it argued, "Pakistan's going nuclear has been seen by 1ehran not entirely
as an unmixed blessing. As 1ehran moed away rom Islamabad, it turned to
New Delhi, and that relationship's deelopment has taken on a momentum o
its own, disquieting to Pakistan. 1he 1aliban episode was perhaps the inal
straw. loweer, the diplomatic eort on both sides now appear irmly ixed
on the common interests and incenties or change. 1his bodes well or
relations coming back on track," the paper said.
Nadeem Iqbal
http:,,www.atimes.com,ind-pak,CL13D04.html

A REPORT ON A PRESS CONFERENCE ADDRESSED JOI NTLY
BY THE MI NI STERS FOR PETROLEUM AND NATURAL
RESOURCES OF PAKI STAN AND I RAN

Islamabad, 22 lebruary 2002

Pakistan and Iran signed a Memorandum o Understanding to undertake a
pre-easibility study or oer a >4 billion onshore route o the gas pipeline
rom Iran to India through Pakistan.
1he signing ceremony was held here lriday in which, Pakistan side
was represented by Minister or Petroleum and Natural Resources Usman
Aminuddin and Iran was represented by its Minister or Petroleum Bijan
Namdar Zanganch.
Addressing a Joint Press conerence along with Minister or
Petroleum and Natural Resources Usman Aminuddin ater the MoU signing
ceremony, the Iranian petroleum minister said the singing o the MoU or the
pre-easibility study was an important step and the study would be completed
by the end o the current year.
An Australian exploration company BlP will conduct the pre-
easibility study or the onshore project. le said, an Italian company Snam
Progetti has been entrusted to conduct the oshore easibility study or Iran
and India or the same project.
loweer, when asked about the existing easibility study o the
project, Bijan Namdar Zanganch said there was still need to update the
preious study with new data, it was thereore decided to conduct new pre-
easibility study or the project.
1o a question about the inolement o International linancial
Institutions such as Asian Deelopment Bank ,ADB,, he said it is a mega
project so a consortium o banks will be inoled to inance major part o
oer >4 billion project.
Replying another question regarding the Iranian goernment
preerence or the project by initiating alternaties o onshore and oshore
routes, the Iranian minister said it was a worldwide practice to go or the cost-
eectieness.
Minister or petroleum and Natural Resources Usman Aminuddin
said a technical delegation would soon isit Iran to discuss terms and
conditions to increase the crude oil import or Pakistan. le said his Iranian
counterpart has assured the goernment or importing gasoline rom Pakistan
and the two sides will soon work out modalities in this respect.
Regarding the other gas pipeline project options, Mr. Usman
Aminuddin said the goernment policy is to ocus on the country`s own
resources and the same time promoting the regional pipelines so Pakistan has
ully supported Iran`s request or the pipeline. \e hae gien no objection to
the pipeline i passes through Pakistan to India,` he added.
1he Iranian petroleum minister said this project would help Pakistan
in terms o transitory ee and in helping lowering the gas cost by using the part
o gas that passes through its territory.
1o a question oer the OPLC`s decision about the oil production, the
Iranian minister said Iran neither wanted to make artiicial shortage nor oer-
supply the market. 1he decision, he said, would certainly depend on market
reaction.
1he two sides also discussed the possibility o Iran`s importing motor
gasoline rom Pakistan and Pakistan`s importing additional quantities o crude
oil rom Iran, currently it is at 13,000 barrels per day.
Pakistan oered its expertise to Iran in establishing a CNG industry
,or ehicular use, in Iran and it was agreed that Pakistan would send a
technical delegation soon to Iran to study the matter urther.
Both sides expressed their concerns about the smuggling o petroleum
products rom Iran to Pakistan and agreed to take measures to stop this illegal
trade, which causes a tremendous loss to the economies o the two countries.
1he two sides agreed to examine urther the easibility o establishing
a coastal reinery in Pakistan in the orm o joint enture. Pak-Iran reinery
project with a capacity o 120,000 BPD is planned to be set up at Khalia
point, lub ,Baluchistan, at an estimated cost o >1.105 billion.

oreigv .ffair. Pa/i.tav, Vol. XXIX, Issue 2-4, leb-Apr 2002, pp. 24-250.

IPRI lactile 48
KHATAMI VI SI T A TURNI NG POI NT

1he three-day oicial isit o President Syed Mohammad Khatami to Pakistan
that begins on Monday signals a promising turning point in Pakistan-Iran
relations soured by Islamabad`s pre-9,11 Aghan policy.
Khatami`s isit to Pakistan, his irst eer, has been long oerdue.
President Perez Musharra had extended an initation to him during his isit
to 1ehran in Noember 1999. One explanation gien by the Iranians or the
belated` isit is that Khatami being a man o democracy` was reluctant to
engage with a military regime.
Incidentally, Iran was the irst country that President Musharra paid a
isit to ater taking oer as the country`s Chie Lxecutie. A act relectie o
the priority and importance Islamabad attaches to its ties with its neighbour.
Khatami`s current isit is an outcome o joint eorts by Islamabad
and 1ehran to improe their relationship that had been strained through the
90s, largely due to the policy dierences oer Aghanistan. 1he 9,11 terror
attacks and subsequent all o the 1aliban in Aghanistan paed the way or
mending o bilateral ties. In the last three years a series o high-leel bilateral
isits hae been exchanged between the two countries to improe trade and
deence-related cooperation.
In June this year, Iran`s top National Security Adiser lassan Ruhani
led a high-powered delegation to Pakistan. More recently, President Perez
Musharra had a meeting with President Khatami on the sidelines o the th
LCO Summit in Istanbul on October 14.
Larlier this month, Pakistan`s oreign secretary isited 1ehran as part
o preparations or the bilateral consultations. 1he Pakistan-Iran Joint
Lconomic Commission met in Islamabad last week ater two and-a-hal years.
Iranian and Pakistani oicials remain hopeul that relations would
normalise and return to the good old times` or get een better.
\hereer Khatami goes there is a turning point,` said 1ehrani, the
Press Counsellor at the Iranian Lmbassy here, reerring to the promise
Khatami`s isit holds or bilateral relations.
1o begin with, the two goernments will sign three agreements to
boost trade and expand cooperation in areas o science and technology and
agriculture.
Lmphasizing the need to urther bilateral cooperation, loreign
Minister Khurshid Kasuri aptly obsered: \e hae spent more than 50 years
on photo opportunity and now we should take concrete steps to promote
economic ties.` Clearly, the goodwill that exists between the two countries
does not relect in the current Pakistan-Iran trade olume.
Rasanjani was the last Iranian head o state to isit Pakistan in 1992.
Khatami`s isit is the irst by any Iranian head o state ater Pakistan
became the rontline state in the US-led anti-terror campaign. Also, the irst
ater Pakistan`s close ally, the United States, dubbed Iran as the axis o eil`
along with Iraq and North Korea.
1he act that Khatami`s isit comes on the heels o US Assistant
Secretary o State Christina Rocca`s isit to Pakistan, it is likely to raise
questions regarding the presence o US orces on Pakistani borders that hae
been an irritant in Pakistan-Iran relations.
Similarly, Pakistan`s concern regarding the North-South Corridor that
Iran wants to establish with India and Russia is also expected to be addressed
by the leadership o both the countries. 1he question o Muslims and Islamic
countries being made the prime target in the ongoing global campaign against
terrorism is likely to igure in the talks between the two sides.
Pakistani leadership has expressed the hope that Iran would play a key
role in bringing India to the negotiating table to address the core issue o
Kashmir. Iranians who now eel that a time has come to resole the Kashmir
issue seem willing to act as the mediator. Pakistan has also pinned hopes on
Iran or urther improing its relations with Aghanistan.
loreign Minister Khurshid Kasuri een coneyed this to the Iranian
oreign minister during their meeting in Bonn and the latter had responded to
it positiely.
Undoubtedly, \ashington ater haing recently declared its suspicions
about Iran`s engagement in a secret nuclear weapons programme will be
closely watching Khatami`s isit to Pakistan. Khatami discarded \ashington`s
nuclear ears the other day as complete nonsense`.
1he Iranian president had recently described the United States and
Aghanistan`s 1aliban as the two blades o a ery dangerous pair o scissors`
tarnishing Islam. One blade is the Islam o the 1aliban, while the other is
trying to impose war, hatred, animosity and imperialism on the whole world
under the pretext o ighting the Islam o 1aliban,` Khatami had obsered.
Iranians claim they hae had more experience o the US goernment`s
sel-sering policies`. 1hey insist time has come or Iran, Pakistan, China and
India to unite. Pointing to their geographic and strategic location one Iranian
diplomat argued: \e hae the basic resources, the industry and the atomic
power so where is the danger`

Qudssia Akhlaque, Darv, 23 December 2002

THE KHATAMI VI SI T

A close identity o iews seems to hae emerged between Pakistan and Iran
ollowing President Mohammad Khatami`s three-day isit to Pakistan. 1he
IPRI lactile 50
our agreements signed by the two sides and the joint communiqu issued at
the end o the isit show the two sides` determination to orge closer
cooperation in the economic, political, cultural and deence ields. loweer,
the signiicance o the outcome o the Khatami isit should be seen against the
background o Pakistan-Iran relations oer the last two decades. 1raditionally
raternal, ties with 1ehran came under strain because o a host o actors,
including the rise o sectarian militancy in Pakistan during the Zia regime and
Islamabad`s close deence cooperation with \ashington ollowing the Soiet
inasion o Aghanistan. Len though the US later ditched Pakistan ollowing
the Soiet withdrawal, 1ehran deeloped serious dierences with Islamabad
oer its Aghan policy. Pakistan`s political and military inolement in the
Aghan ciil war and its categorical support to the 1aliban did not go well with
Iran. In the Aghan ciil war, thus, Pakistan and Iran ound themseles on the
opposite sides when Iran started backing the anti-1aliban actions. 1he killing
o some Iranian diplomats and engineers in Pakistan also cast a shadow on
relations between the two countries. \et, in spite o these setbacks, the two
countries did not allow their relations to become inimical.
Under President Khatami - now in his second term - Iran has
made determined eorts to break out o its regional and international
isolation. It has improed its relations with the Arab countries, especially the
Gul States, and normalized ties with Lurope. 1he all o the 1aliban regime in
Kabul has also remoed a major irritant in Pakistan-Iran relations. No wonder,
the Iranian president should hae been the irst head o state to isit Pakistan
ater the installation o a ciilian set-up in Pakistan. 1he joint communiqu
issued at the end o the Khatami isit testiies to the area o understanding that
already exists between the two countries. It spoke o Islamabad and 1ehran
haing common strategic interests` and expressed the determination o the
two sides to strengthen their bilateral relations in all spheres, including
economic and deence.
On Aghanistan, they pledged to uphold the Bonn process, and on
Iraq the communiqu struck a moderate, reasoned note. \hile the two sides
opposed a military strike on Iraq, they urged Baghdad to respect and
implement` the UN resolution on disarmament. Len though the
communiqu did not make a pointed reerence to the Kashmir issue, President
Khatami made it clear in his speech at the ciic reception at Lahore`s Shalimar
Gardens that the unprecedented brutalities` against the people o Kashmir
were intolerable` or Iran. In this context, he made a strong plea or Pakistan
and India to resume talks to sole all issues, including Kashmir.
1he communiqu touched on the issue o a projected gas pipeline
rom Iran across Pakistan to India, and emphasized its importance or the
region`s economic deelopment. 1he major hurdle delaying the project is
India`s conditions about the saety o the pipeline. New Delhi wants 1ehran to
compensate it in case Islamabad cuts o gas supply to India. 1he ear is
unounded. It is an economic project or the common beneit o all the three
countries. One hopes India will gie up its rigid stance on the question o
security o supply and help in what the communiqu calls the implementation
o the project immediately.` 1he Khatami isit could turn out to be a
watershed in Pakistan`s relations with Iran i the two countries carry orward
the goals and sentiments contained in the communiqu.

Lditorial, Darv, 2 December 2002
http:,,www.dawn.com,2002,12,2,ed.htm41

ECONOMI C TI ES TOP PRI ORI TY, SAYS KHATAMI

President Mohammad Khatami o Iran on Monday declared that Iran`s
borders with Pakistan are the borders o security, peace and riendship.`
\e are quite conident o the security o our eastern borders, and
Pakistan, too, is keen on ,ensuring, the security o its common border with
Iran,` he said in his speech at a banquet hosted in his honour by President
Perez Musharra.
In our neighbourhood, neertheless, there hae existed arious issues
and problems that hae let harmul impact on both o us. 1o sole these
problems, we are in need o urther cooperation.`
lortunately, he said, both the goernments were determined to sole
all issues and diiculties that linger in our mutual relations.`
\e consider our commercial and economic relations with Pakistan
,as being, o top priority, and we sincerely hope or the extension o these
relations, both quantitatiely and qualitatiely.`
1he recent economic reorms in Iran, the aluable experience we hae
acquired in the industrial and economic ields, and the new role we hae
aorded to the priate sector in our economy, hae prepared the ground or
enhancing o our cooperation in these areas, Khatami said.
Iran, he said, had been trying to encourage its priate sector to do
business with its neighbouring countries. loweer, we still hae to proide
certain acilities to them, so that they ind it economically beneicial,` he said.
Iran and Pakistan hae, throughout history, been ery good riends
and ery good neighbours, with least instances and causes or discord,
President Khatami said.
Our regional cooperation is maniold. \e work in seeral regional
organizations side by side. Our interests are the same and the dangers
threatening us are ery much alike. 1he security o Pakistan has always been o
great importance to us and we hae, thereore, been quite prepared to urther
enhance our all-round strategic cooperation with Pakistan.`
lortunately, he said, the Mutual Lconomic Cooperation Commission
has prepared the ground` or our economic actiities. 1he thirteenth Session
IPRI lactile 52
o the Mutual Lconomic Cooperation Commission, held last week in
Islamabad, has already completed its work with great success, and we
certainly hope that the agreements reached will be smoothly put into
execution and ollowed up by the people in charge.`
1here are numerous contexts or the deelopment o our mutual
scientiic, research, and technological relations as well, and we certainly hope
that the deelopment o these relations will soon gain momentum, and that
they will be expanded rapidly,` he said.
\ith the assistance and cooperation o our Pakistani riends, the
present isit will help us identiy some practical ways o urther promoting our
mutual relations so that we will soon witness the opening o many new
horizons or our uture bilateral and multilateral relations,` Khatami said.
In his address on the occasion, President Musharra hoped that Iran
will help resole the long-running Kashmir dispute in line with the UN
resolutions.le called or a Pakistan-Iran coordinated strategy to support the
peace and deelopment process in the war-raaged Aghanistan.
\e deeply appreciate Iran`s eorts to deuse tensions between
Pakistan and India,` he said.
le said India should also rerain rom committing atrocities against
the Kashmiri people aimed at rustrating their struggle or reedom rom its
occupation.
le said Pakistan and Iran had suered the most rom the instability in
Aghanistan. Peace and stability there was thereore not only in the interest o
its people but also in the national interests o both Iran and Pakistan.
le called or working on a coordinated strategy o supporting peace
and deelopment process in Aghanistan.
Larlier, President Khatami and his delegation were accorded a warm
welcome by loreign Minister Mian Khurshid Mehmood Kasuri on their arrial
at the PAl Chaklala base.


PAKI STAN-I RAN RELATI ONS: COMPULSI ONS AND
CONDI TI ONS FOR A STRATEGI C RELATI ONSHI P

Common borders, aith and culture are enabling actors that acilitate
interstate ties. 1hese are, howeer, neither necessary nor suicient elements.
Relations between a Muslim Pakistan and a Communist China, a Christian
Russia and lindu India sharing no borders and between United States and
Britain which stand diided by the Atlantic Ocean, underscore this point. A
journey o riendship between two states starts with ties conerted into a
relationship and inally through a conscious eort turning into riendship.
Merely an eent - triggered positie interaction between two states is
no riendship. lriendship means loyalty, een i in the short-term ostensibly at
the cost o one`s own adantage. 1his loyalty yields aluable national security
diidends since two countries get bound into a long-term relationship
generating or the two a mutuality o interests in which their undamental
interests are not undermined by each other. A long-term, trust-based,
interstate relationship oten generates a calculus o low risk-high return long-
term beneits.
Conerting a bilateral relationship into a credible riendship is a
conscious process. State and goernment oicials together hae to crat and
create this process. 1wo essential actors which determine the potential and
progress o interstate relations are Compulsions` and Conditions`. Let us
now examine Pakistan-Iran relations, present and uture, with reerence to
what I would call the Compulsions-Conditions` lramework. Compulsions
create the logic and hence illustrate the necessity or a relationship. Conditions
determine the extent to which compulsions are conerted into a tangible and
mutually adantageous relationship.

I. Compulsions
Compulsions are determined by actors that are both permanent and
impermanent. A permanent actor or example in Pakistan-Iran relations is a
00 km long shared border. Interestingly though, as a stand-alone actor this
border constitutes and generates a permanent and positie compulsion or a
relationship. \et, whether a common border may generate positie or negatie
compulsions or a relationship depends on goernment policy. I policies o
the neighbouring country impact negatiely on the commercial, security and
political situation o the other, potential cooperation can degenerate into
conrontation.
1hereore, the impermanent actors that determine compulsions
would be the changing security, economic or ideological policies o either
country. lor example, the enhanced security relationship o one neighbour
with a third country which is an adersary one o the other neighbour,
Pakistan with the US and Iran with India. Similarly, the means that Iran or
Pakistan would adopt to promote and protect their respectie interests, or
example in Aghanistan, or in securing trade routes, would eect the
compulsions o their relationship.
Pakistan and Iran`s responses to the new geo-political deelopments
within and outside o the regional context also inluence the compulsions o
their bilateral relationship. 1hese deelopments would include the US military
presence in Aghanistan, the US targeting o the axis o eil`, the war against
the so-called Islamic terrorism`, missile race in the region, deelopment o
India`s aggressie nuclear capability, and its aggressie assertion o
IPRI lactile 54
unilateralism, militarism suberting dialogue and diplomacy as a mode or
settling inter-state disputes, the selectie application o international law to
regional conlicts, are some o the ramiications. In crating responses to these
deelopments Pakistan and Iran also deine their national challenges and threat
perceptions. Signiicantly a shared perception o challenges and o threats to
national security does constitute a solid plank or constructing or reinorcing a
bilateral relationship.
Compulsions that drie the Pakistan-Iran relationship are, thereore,
both permanent and impermanent. loweer, their geography and people-
based ital elements o culture, history and aith which, I would argue, will
become increasing releant in internal and external power relations, are
important permanent actors. 1he extent to which these permanent actors
can become the driers` or an unlinching relationship, despite the changing
compulsions will depend largely on the conditions in which the Pakistan-Iran
relationship would eole. 1his brings us to Conditions` which was earlier
outlined as one o the two actors that determine the potential and progress o
a bilateral relationship.

II. Conditions
\hat do we mean by Conditions Conditions indicate speciic elements which
acilitate the growth and continuous negotiation o a relationship. lour
condition-creating elements are important, political commitment,
institutionalised dialogue, agreements and a proactie and independent ourth
estate.
i, Potiticat !itt
Political` will means a commitment to the interstate relationship at the highest
leel. 1his is where the strategic character o a relationship is established.
Cutting across the occasionally stumbling nuts and bolts o a relationship the
top leadership has to look beyond the present and the narrow outlook. It is the
leel where elements o the contextual with the crucial, the problems o the
present and the potential o the uture, the intangible with the tangible, and o
aith and trust must combine into a political will to solidiy a relationship and
take it through the ineitable course o concerns, complaints and criticisms
that any relationship, within a dynamic and complex internal and external
context, will be exposed to.
\ithin the Pakistan-Iran context, since Noember 2001, a top-leel
political commitment is eident both in Islamabad and 1ehran. Political
commitment in Pakistan to this relationship was maniested through President
General Parez Musharra`s isits to Iran, since Noember 1999. 1he Iranian
President Mohammad Khatami`s December 2002 isit to Pakistan - the irst
by an Iranian President in ten years - also coneyed Iran`s political
commitment to the relationship. 1he isit, seen as a rather late response to the
two year old initation by Pakistan`s President, was termed as a turning point`
by many Pakistani analysts. 1he our page joint communiqu issued at the
conclusion o the two-day Khatami isit relected the similarity o iews on
key strategic issues including Iraq, Kashmir, Palestine and multilateralism, as
well as the intention to enhance cooperation.
Such a concrete maniestation o political will can be the setting up o
a high-powered 1ask lorce on, or example, Pakistan-Iran Relations under the
heads o the goernment and can be mandated to meet on a periodic basis.
1he task orce can sere two purposes. One, it can ensure internal inter-
institutional coordination among the arious institutions inoled in a multi-
sectoral relationship. 1wo, it can help to ight the inertia that ineitably
accompanies any routine actiity, rom slowing down strengthening o the
relationship. A Prime Minister`s or President`s 1ask lorce with the political
will to meet regularly will enable the responsible oicials or taking the
relationship orward.
Greater interaction at the highest leel is required to clear existent
misperceptions, enhance political commitment to the relationship and to
eole a common understanding o the geo-political challenges acing both
Iran and Pakistan.
loweer, generating and sustaining political commitment to drie a
relationship is not an autonomous or an indiidual act. lor example, to
articulate political commitment to improing Pakistan-Iran relations, President
Mohammad Khatami and Prime Minister Zaarullah Jamali must also be
exposed to a collectie understanding o the context, o the compulsions,
especially the changing compulsions that inluence this relationship. It requires
that the heads o the state and the goernments, through the regular holding
o insituationalised dialogue, deelop their collectie understanding o the geo-
political context, and the compulsions that inluence their bilateral
relationship. 1his brings us to the second element that o institutionalised
dialogue which creates the conditions to acilitate a bilateral relationship.

ii, v.titvtiovati.ea Diatogve
1o generate and sustain political, bureaucratic and the national will and to
construct a beneit calculus essential or strengthening bilateral relationship,
continuous interaction is necessary to explore new aenues and improe the
existing areas o interaction. Continuous interstate interaction is best
conducted within an institutionalised ramework, through the ormation o
joint commissions and task orces to deal with common concerns.
Continuous interaction is equally important to tackle the hurdles that
will ineitably emerge in any dynamic relationship. More so in the context o
Iran-Pakistan bilateral relationship, where the last decade has been marked by
distrust. Oten the distrust actor has triggered o media wars. Agencies on
both sides hae used the print media to attack each others` policies on
IPRI lactile 56
Aghanistan, on trade routes, on export policies, on sectarianism, on their
respectie relationship with India and with the United States.
\ithin the context o Pakistan-Iran relationship, which coers
multiple sectors including trade, deence, oil and gas, communications, internal
security, art and culture, and issues such as cross-border smuggling, the need
or an institutionalised dialogue is a must.
In the post-Noember 2001 period numerous dialogue- ora hae
been established between Iran and Pakistan. 1hey include the ollowing:
Joint Ministerial Commission on Deence Cooperation ,last meeting
held on July 1993,.
Pakistan Iran Joint 1rade Committee ,last meeting held on December
13, 2002,.
Pakistan Iran Joint Commission on Communications ,setup in
Noember 2001,.
Special Security Committee on Security and Border Issues ,last
meeting held in July 2001,.
Pakistan Iran Joint Ministerial Commission on Security ,setup in
Noember 2001- to jointly deal with the problems o terrorism, smuggling,
sectarian iolence, extremism and narcotics, irst meeting in September 2002,.
Mechanism o Consultations between the two loreign Ministries on
Bilateral Relations and on Regional and International Deelopment ,irst
meeting held in July 2001,.
Regular Interaction between the Intelligence oicials Pakistan and
Iran began in October 2001. Current Interaction between senior leel Inter
serices Intelligence ,ISI, and Iranian intelligence oicials hae ocused on the
uture o Aghanistan, the role o the seen Iranian Cultural Centers in
Pakistani politics, media propaganda against each other, and the saeguarding
o Pakistan`s security interests gien the Indian presence in the strategically-
located Iranian towns near Pakistani territory.

iii, .greevevt.
Bilateral agreements proide the ramework within which a relationship can
moe orward systematically. Agreements document the acknowledged
potential o a relationship and the desires o goernments to work towards
materialising the potential to mutual beneit.
Some o the existing bilateral agreements between Iran and Pakistan
include the 2002 Memorandum o Understanding on Scientiic and
1echnological Cooperation, the 2002 Agreement on Cooperation in the lield
o Plant Quarantine and Plant Protection, the 1989 Pakistan Iran-Pakistan
Deence Agreement.

i, Proactire ava vaeevaevt ovrtb .tate - tbe Meaia
\hile the State and the goernment proide the ramework or deeloping a
bilateral relationship at the interstate leels, the media popularises the message,
and mobilises public participation and enthusiasm or nurturing the
relationship. Such enthusiasm, especially in democratic societies, in turn
translates into a pressure on the State and the goernment to urther
strengthen the relationship. A proactie and independent ourth estate,
thereore, becomes both the mobiliser o public opinion and the monitor o a
bilateral relationship.
\ithin the context o Pakistan-Iran relations, the enthusiasm in
dierent sections o society or this relationship does get somewhat relected
in their media. 1he media has also relected the cynicism that preails in the
two countries regarding their respectie policies. Signiicantly, in the last three
months the Pakistan-Iran intelligence agencies hae met twice and discussed
the need to counter negatie propaganda against each other. Beyond this there
are irtually ery ew actie and inormed media adocates o a strengthened
Pakistan-Iran relationship.

III. Pre.evt tate of ravPa/i.tav itaterat Retatiov.
Since Noember 2001, Pak-Iran Relations hae been on the road to
improement. 1here is a renewed engagement in the ollowing sectors:

1rade Relations
1he trade gap is heaily in Iran`s aour since Pakistan imports crude Iranian
oil. Pakistan has already begun importing Iranian electricity or Baluchistan in
December 2002. 1he trade igures or 2000-2001 are 30 million dollars worth
o imports rom Iran and Pakistan exports to Iran alued at 24 million dollars.
Negotiations are underway on export o rice, wheat and mangos. Pakistan is
seeking to export textile and surgical equipment also. A new trade agreement
was drated during the December 2002 Pak-Iran Joint 1rade Committee
meeting.

Defence Cooperation
1he stalled relationship in the area o deence has picked up since the end o
2001. Pakistan and Iran are inoled in the joint production o deence
equipment including Pakistan-designed Al-Khalid 1anks.
1here exists already the July 1989 Pakistan-Iran Deence Agreement.
Other areas under consideration or joint production include helicopters,
unmanned ehicles, APCS. Discussions or signing a new deence cooperation
agreement are presently under way. 1he potential or the greatest cooperation
between the two Naies in training, technical aspects needs to be explored.
IPRI lactile 58
1he slow cooperation in the deence sector relects unresoled
undamental issues which are holding down the better prospects in the
Pakistan-Iran deence cooperation.
Clearly the extent to which deence cooperation can deelop would
also be linked to the perceptions that the two countries will eole on matters
o national security geo-politics. lor example, the January 19, 2003, Indo-
Iranian deence cooperation agreement signed in 1ehran between Admiral
Madhaendra Singh, the Indian Nay chie and the chairman o the Chie o
Sta Committee, and the Iranian Minister o Deence and Logistics, Rear-
Admiral Ali Shamkhani coneys a signiicant degree o common Indo-Iranian
geo-strategic thinking.

Lnergy
Pakistan`s imports o crude oil rom Iran hae increased. Also since December
2002 Pakistan has begun the import o electricity rom Iran or consumption
in Baluchistan. Regarding the proposed gas pipeline rom Iran to India ia
Pakistan, Pakistan has coneyed its written consent to the project and
undertaken to proide international guarantees or the security o the pipeline
to India.

IV. Ovt.tavaivg ..ve.
\hile progress is eident in key sectors, there are areas o concern, or both
Iran and Pakistan, which require greater dialogue to enhance the strategic
understanding between Pakistan and Iran.

Iran's Concerns
1he US lactor: Iran`s apprehensions regarding the United States military
presence and its uture plans in the South \est, Central and South Asian
region enhances 1ehran`s scepticism with regard to Pakistan`s cooperation
with the United States as o post-9,11 period. \hile Pakistan is a partner in
the US-led, international coalition against terrorism in Aghanistan, Iran was
placed on the US list o axis o eil` in January 2003.
1he Sectarian lactor: 1his is now a relatiely diminishing concern.
Iran`s concerns on sectarianism in Pakistan grew ater nine Iranians including
diplomats, airorce cadets and engineers were assassinated in Pakistan. 1he
irst killed in 1990 was Sadiq Ganji, the Iranian Consul-General in Lahore. 1he
Sunni-Shia killings, a huge domestic problem or Pakistan, especially in the
decade o the 90s, also raised oicial and public concerns in Iran.
1he ailure o Pakistan`s judicial process to take conclusie action
against those in police custody and responsible or the murders, including that
o the Consul-General, contributed to deteriorating Pakistan-Iran relations.
Since lebruary 2001, ollowing the execution o the man responsible or Sadiq
Ganji`s assassination, the Iranian goernment iews aourably the oicial
eorts at goernment leels in Pakistan.

Pakistan's Concerns
1he North-South Corridor: As Pakistan-Iran relations deteriorated oer their
diergent Aghan policies, Pakistan perceied that the Iranian goernment was
deliberately denying it the use o oerland trading routes. Speciically Pakistani
oicials complained about Iran`s delay in constructing the 500 kilometer
Zahidan-Kerman railway section. During the January 2003, thirteenth session
o the Pakistan Iran Joint Lconomic Commission, the Iranian delegation
inormed its Pakistani collegues, that 250 kilometres o the 550 kilometre
stretch has been constructed. By 2005 the entire length will be constructed.
A section o the Pakistani establishment has also been critical o Iran`s
decision to upgrade the Chahabahar port acilities to make the Mumbai-
Chahabahar route unctional or trade between India and the Central Asian
republics. It has been iewed as an Iranian step to promote Indian interests as
well as side-step Pakistan rom the critical trade route.
Aghanistan lactor: \ith the remoal o the 1aliban, Pakistan-Iran
tensions oer Aghanistan hae decreased, though the need remains or a
candid Pakistan-Iran dialogue oer Aghanistan. In 1ehran there are questions
regarding Pakistan`s policy towards the remaining al-Qaida members and
ormer commanders like Gulbadeen likmatyar ,Iran proided shelter to
likmatyar or an extended period ater he was asked to leae Pakistan in the
mid-nineties and in recent times he has reportedly been actie once again in
armed clashes in Aghanistan,. In Islamabad, there are questions regarding
1ehran`s military support to Aghan leaders like the ormer goernor o lerat,
Ismail, and to Khalili o lizb-e-\ahdat. Iran`s role in acilitating the re-entry
o the Indian actor` in Aghanistan is also iewed with concern by Pakistan`s
goernment. lor example, Pakistani oicials point to the presence o an
Indian brigadier to conduct a surey or the construction o a transit terminal
bridge between Aghanistan and Iran near Zabol.
1rade lurdles: Despite regular Pak-Iran dialogue on trade issues in
Pakistan, there is a perception that Iran has not been sincere about increasing
imports rom Pakistan. lor example, Pakistan complains that smuggled rice,
wheat and mangos rom Pakistan are imported as sold in the Iran market.
Iranian oicials hae meanwhile identiied price and quality o these products
as reasons or Iran`s inability to increase wheat, rice and mango imports.
India lactor: 1he unrelenting security crisis in the Indian-held Jammu
and Kashmir, combined with India`s major military build up and the Indian
goernment`s unrelenting anti-Pakistan rhetoric has brought Pakistan-Indian
diplomacy to a grinding halt. Pakistani oicials who beliee India is pursuing a
systematic policy o destabilising Pakistan remain apprehensie o India`s
IPRI lactile 60
increased presence in Iran and the expansion o Iranian-Indian deence ties.
lor example, the 80-person strong Indian Consulate in Zahidan, a town which
borders Pakistan but has less than 100 Indian amilies, or the strategic
implications o the Indian Consulate set up at Bandar Abbas in May 2002 ater
the closure o its Consulate in Shiraz. Pakistan complains that the Consulate
through monitoring deices will be able to ollow moement o ships
throughout the Persian Gul, especially through the Strait o lormuz.
Meanwhile, Iran has already oered Pakistan the establishment o its
Consulate at Bandar Abbas.

V. 1he Way Iorward
Built into the dynamics o any interstate relationship is the suracing o
contentious issues that will emerge rom time to time. 1he challenge in a
bilateral relationship, thereore, is precisely to mutually tackle the stresses and
strains, and in act to consciously construct a relationship structure capable o
resoling tensions.
1he ollowing speciic areas should be addressed by both
goernments to construct a mutually beneicial relationship structure despite
the strains and stresses:
Institutionalise a bi-annual strategic dialogue.
Regularise Annual Summits.
Set up a 1ask lorce on Pakistan-Iran Relations in both countries.
Undertake joint research projects.
Reie exchange training programmes.
Lstablish academic exchange programmes between uniersities and
think-tanks. An agreement has been signed between the Punjab Uniersity in
Pakistan and two uniersities in Iran including the Uniersity in Isphahan.

Vision 200S
Any successul eort to conert Pakistan-Iran relations into a riendship must
be guided by the ollowing ision:
By 2005, the leel o trust and cooperation should be at a leel that it
is mutually accepted as addressing the national security concerns o both Iran
and Pakistan, encompassing their core concerns related to economic
deelopment, political imperaties, military deence, territorial integrity and
global stature.

Nasim Zehra, , 24 January 2003
http:,,www.issi.org.pk,journal,2003_iles,no_1,article,4a.htm

A NEW CHAPTER I N TI ES WI TH I RAN

President Khatami`s recent isit to Pakistan will be seen as a maniestation o
the desire o the goernments o Iran and Pakistan to put the 1aliban interlude
behind them and to reinigorate their long-standing and bilateral relationship.
1his was relected in the public statements made by the distinguished
Iranian isitor and the joint statement issued by the two sides. Although the
signiicant changes in the region, including the end o the 1aliban order in
Aghanistan, has opened the doors to renewal o a close and trusting
relationship, political will is required at the highest leel to build anew on the
identity o geopolitical interests between Pakistan and Iran in an insecure and
olatile enironment.
Since the early years o Pakistan, the ainity o geopolitical interests
between the two neighbours has been mutually recognized. ledged in as
Pakistan is by an adersarial India, an unstable and turbulent Aghanistan and
the Russian lederation, which has not gien up its reserations about Pakistan,
Iran is its only secure and workable land link to the outside world.
1he deterioration in Pakistan-Iran relations during the 1990s resulted
rom their conlicting interests in Aghanistan and diergent postures in
relation to the 1aliban, as also rom rialry oer economic opportunities in
Central Asia and the rise o sectarian terrorism in Pakistan. 1he strong Iranian
reserations about the 1aliban were exploited by India as a means o policy
conergence with 1ehran on Aghanistan.
On Iran`s part, the importance o political and economic cooperation
with major Asian states, especially with a country o India`s size and
importance, was enhanced during the mid-1990s by the US drie to isolate
Iran economically and by Iran`s need to look or economic partners beyond
the Gul. lormer Iranian president Rasanjani`s idea o Asian Cooperation`
inoling India, China and Iran, was an attempt to break out o the political
and economic quarantine sought to be enorced by the US in Lurope, Asia
and the Middle Last at a time when Iran was desperately trying to rebuild its
economy shattered by eight years o war with Iraq.
1he call or Asian Cooperation` was echoed by the Iranian supreme
leader, Ayatollah Khamenei, who also called or closer cooperation between
India, China, Russia and Iran to combat world-wide US intererence in other
countries. 1he growth o undamentalism in Pakistan during the Zia period
and increasing sectarian terrorism had created doubts in the Iranian mind
about the aailability o a leel playing ield or promotion o Pakistan-Iran
relations. 1hese misgiings should now be allayed with the tough action taken
against terrorist elements by the Pakistani authorities in recent months and the
change in the policy towards the 1aliban.
IPRI lactile 62
President Khatami`s declarations during his recent isit were not
merely routine statements customarily made on such occasions but mirrored
the geo-political identity o interests which the two countries share. 1he
Iranian president declared that Pakistan`s security was ery important or Iran
and that Iran was interested in enhancing strategic cooperation with Pakistan`,
that Iran`s borders with Pakistan were those o peace, security and
riendship`, and that Pakistan and Iran`s interests were the same and the
dangers and threats to them were alike.`
On Indo-Pakistan relations, the Iranian leader reiterated his country`s
desire to deuse tensions and to help in resoling problems between New
Delhi and Islamabad, as 1ehran has tried to do in the past also. On Kashmir,
he reerred to the need or negotiations, and or a solution keeping in iew the
will o the Kashmiri people.
Maintaining that he was speaking as a human being, as a Muslim and
as an Iranian, he expressed deep anguish at the brutalities and suerings
inlicted on the Kashmiri people and asked that these should come to an end.
It is important to note, howeer, that the signiicant political and economic
inroads made by India during the period o Pakistan`s estrangement with Iran
will continue to act as a limiting actor on those aspects o its bilateral relations
which impinge directly on India. lor instance, in spite o the positie
reerences to Kashmir and the Kashmiris in the Iranian president`s speeches,
the joint statement issued at the end o the isit does not include any such
reerences.
In regard to Aghanistan, Palestine and Iraq, the two sides shared a
similar perception. Both agreed to make all eorts to promote Aghanistan`s
stability and security and to help in the reial o Aghanistan`s economy and
in rebuilding its inrastructure. Both warned against any pre-emptie or
unilateral military action against Iraq, while asking the latter to ulill its
obligations under the UN resolutions on arms inspections.
1he emphasis repeatedly placed during the Khatami isit on the need
or increasing economic cooperation should be iewed as an admission o the
disappointing perormance in this ield in the past.
It is imperatie that the agreements signed during the isit, particularly
the decisions made at the 13th session o the joint economic ministerial
commission, are eectiely implemented. 1he arious proposals or joint
entures and related projects ought to be approached as an integrated package,
taking into account the interests o both countries to aoid oot-dragging o
the past oer arious projects on grounds o perceied comparatie gains or
costs. 1he RCD ailed to register progress in economic cooperation because o
the absence o complementarily in the national economies inoled despite the
ainity o security interests. Its expanded successor LCO too has ailed to
make any headway or somewhat dierent reasons. \hile economic
opportunities are aailable or cooperation with the newly independent Central
Asian states, the diergence between the political interests o Iran and
Aghanistan had stymied progress in regional and een bilateral cooperation.
Now, or the irst time in recent years, Pakistan and Iran share a
considerable ainity o security interests in the region as well as a
complementarily o interests in bilateral and regional economic cooperation.
Keeping in iew their respectie interests and policies in Central Asia and
Aghanistan, it should not be beyond the diplomatic ingenuity o the two
countries to work out a common ground.
1he potential or economic cooperation with the Central Asian states
and the prospects or transit routes inoling export o oil and gas are aried
enough to permit productie collaboration as long as regional states do not
become cat`s paws o outside powers.
President Khatami raised the leel o the global political discourse by
reiterating his call or a dialogue between ciilizations` rather than the glib
and tendentious talk o a clash o ciilizations.` In reerring to Islamic unity,
he made it clear that this was not directed against any group.
le disagreed with the extremists in the Islamic world who reject
eerything western and called or a synthesis o the best in the two cultures,
the western and the Islamic. As or America`s threatening posture against Iran,
which President Bush has described as part o an axis o eil`, Pakistan should
reiterate its strong concern to the US against any moe to coerce Iran which
would be disastrous or the region. 1here is no eidence to link Iran to any
sponsorship o terrorism.
\ith its close relationship with the US, Pakistan is well placed to use
its good oices or a rapprochement between the two. Len the Luropean
Union`s policy on Iran diers signiicantly rom that o the US. Lurope seeks
continued engagement with Iran, opposes any military action against it, and
welcomes the reormist trends in Iran. It has adopted an understanding and
positie stand on Iran`s legitimate interests in Aghanistan and on Iran`s wish
or economic and transit trade cooperation with Central Asia.

Mahdi Masud, Pa/i.tav iv/, 10 January 2003
http:,,www.pakistanlink.com,letters,2003,Jan,10,02.html

PRI ME MI NI STER JAMALI S OFFI CI AL VI SI T TO I RAN FROM
21-24 [21-23] OCTOBER 2003

On the initation o the President o Iran, Syed Mohammad Khatami, the
Prime Minister Mir Zaarullah Khan Jamali paid an oicial isit to Iran rom
21-24 |21-23| October 2003. During the isit to Iran, the Prime Minister was
accompanied by a high leel delegation including the Prime Minister o
Commerce, Minister or Inormation and Broadcasting, Minister or
Petroleum and Natural Resources and senior oicials.
IPRI lactile 64
1he important engagements o the Prime Minister in 1ehran on 21
October included oicial talks with President Khatami, a welcome ceremony
hosted by Mr. Mohammad Reza Are, lirnt Vice President and oicial talks
with President Khatami. 1he Prime Minister held a second round o oicial
talks with lirst Vice President Are in the eening.
On 22nd October, the Prime Minister laid a wreath at the Mausoleum
o lmam Khomeini. le called on Ayatollah Al-Uzma Syed Ali Khamenei,
Supreme Leader o Iran. Other engagements o the Prime Minister in 1ehran
included meeting with ormer Iranian President and Chairman o the
Lxpediency Council, Mr. Akbar lashemi Rasanjani and interiews to leading
Iranian newspapers. 1he Prime Minister also met the members o Pakistani
community in 1ehran.
Mr. Mohammad Reza Are, lirst Vice President hosted the oicial
arewell ceremony beore departure o the Prime Minister rom 1ehran or
Mashhad on 23d October. During stay in Mashhad, the Prime Minister isited
Shrine o Imam Reza. Ater oernight stay, the Prime Minister returned to
Pakistan in the morning o 24th October.
Pakistan and Iran hae traditionally enjoyed close and cordial relations
characterized by shared perceptions on major global and regional issues as well
as regular exchange o high leel isits. 1he isit o the Prime Minister to
1ehran is being undertaken to augment the multi-aceted relations between the
two countries, particularly in the economic spheres as well as to promote
greater identity o iews on international and regional issues o mutual interest.
It may be recalled that President Syed Mohammad Khatami o Iran paid an
oicial isit to Pakistan in December 2002. 1he isit o the Prime Minister to
Iran is taking place in response to the initation extended by the President o
Iran as part o ongoing high-leel consultation process between the two
countries.
1o reinorce economic interaction, Pakistan and Iran hae concluded
a number o bilateral agreements. 1he Joint Lconomic Commission ,JLC, at
the ministerial leel and a number o other mechanisms are already in place or
this purpose. In addition, regular consultations are held by the loreign
Secretaries o the two countries within the ramework o a bilateral protocol.

Bilateral 1alks
On 21 October, Prime Minister Mir Zaarullah Khan Jamali held wide-ranging
talks with the Iranian leadership ocusing on seeral areas including
improement in bilateral relations and increased cooperation in economic
ield.
1he talks underlined the need to hae greater cooperation between
the two countries in trade, economy and commerce. 1he prime minister held
two rounds o oicial talks. 1he irst round was with President Syed
Mohammad Khatami, ollowed by a second round with the lirst Vice
President Mohammad Reza Are.
\elcoming the prime minister, President Khatami said the two
countries were bound with strong historical, cultural and geographical ties,
spanning oer centuries. le hoped that strong bilateral relations between the
two countries would be translated into equally strong economic ties or the
betterment o the two people.
le reerred to his ruitul talks with President General Perez
Musharra at the 10th Organisation o Islamic Conerence summit at
Putrajaya. 1he two countries, he said, share common interests` and assured
that the outcome o the talks would be implemented in an eectie` manner
and with concrete measures`.
le also appreciated Pakistan`s stature in the comity o nations owing
to its adancement in the ield o science and technology. Prime Minister
Jamali reciprocated the sentiments o the Iranian President and said the two
countries were playing an important role in the Ummah and the Organisation
o Islamic Conerence.
le said there were a number o pending matters beore the Joint
Lconomic Commissions o the two countries that needed attention said the
people want to see concrete results and actions, which bring about a positie
change in their lies. le said the two countries need to take eectie measures
to bring about a marked change in the lie o their people.
1he Prime Minister, who is on a three day isit to Iran earlier told
reports at the Republic Mansion ,Islami Jamhoori Building, ater a ormer
reception that relations between the two countries were all set to gain urther
strength in the days to come.
Iranian loreign Minister Kamal Kharrazi called on Prime Minister
Zaarullah Jamali and discussed regional international and bilateral relations
between the two countries. 1hey called or the need to hae greater interaction
at all leels and on solid oundations or the betterment o their people.

Visit to Mausoleum of Imam Khomeini
Minister Mir Zaarullah Khan Jamali isited the Mausoleum o Imam
Khomeini on \ednesday, laid a wreath and paid homage to the great leader o
Iranian Islamic Reolution.
1he national anthems o the two countries were played as the Prime
Minister and members o his entourage entered the huge gold domed complex
housing the mausoleum around 30 kms south o 1ehran.
A contingent o the armed orces o Iran presented him salute, laid
the loral wreath and oered ateha. Prime Minister Jamali said the
goernment and the people o Pakistan hold the late Imam in high esteem as a
great leader and ounder o the Islamic Republic o Iran. le termed him a
IPRI lactile 66
leader o the entire Muslim Ummah. Prime Minister in his comments on the
guest book wrote, I pray that Islam has other such lmams who sere the
Muslims and the humanity.`
Meetings with Iranian leadership, Prime Minister Jamali on
\ednesday called on the Iranian Supreme Leader Ayatullah-ul-Uzma Seyed
Au Khamenei and discussed bilateral and regional issues. 1hey also talked
about the scope or enhancing the existing brotherly relations between the two
countries.
Iranian Vice-President Mohammad Reza Are stressed on the
importance o expansion o all-out bilateral ties with Pakistan. In a meeting
with isiting Pakistani Prime Minister Zaarullah Khan Jamali, he outlined the
commonalties between the two nations as well as Pakistan`s special status in
Iran`s oreign policy.
le oiced the two countries` determination to expand mutual ties
adding that there are great potentials in both Iran and Pakistan or urther
promotion o cooperation.
1ehran is ready to pae the way or materialization o the accords
already signed by the two sides, Are added. le urther announced Iran`s
readiness to supply Pakistan with the required energy including gas and
electricity.
Lstablishment o peace and security in Aghanistan will beneit both
Iran and Pakistan, he said adding Iran is ready to cooperate with Pakistan in
this regard.
1he Vice President noted that regular talks between the two sides
would make the two goernments and nations closer to each other. Mr. Jamali,
or his part, expressed his satisaction with the amicable relations between
1ehran and Islamabad and called or urther expansion o bilateral
cooperation.
le urther stressed on the importance o the two countries
cooperation within the ramework o the Lconomic Cooperation Organization
,LCO,. During the meeting, also attended by Iran`s Minister o Roads and
1ransportation Ahmad Khorram and the Iranian head o the joint
commission, the two sides underlined the need or expansion o cooperation
in the area o transportation.

Address to Pakistani Lxpatriates
In his address to a large gathering o Pakistanis here at the Lsteghlal hoteI,
Prime Minister Mir Zaarullah Khan Jamali said that Pakistan as alie to the
security scenario along its borders and was ully capable to deend itsel.
Allaying the ears o Pakistanis abroad, Prime .Minister Jamali said Pakistan`s
deence needs are paramount and all steps hae been taken to secure country`s
borders.` le asked Pakistanis abroad not to worry as the country was in sae
hands. le said Pakistan which came into being on the basis o Islamic
ideology a country o 150 million people strong enough to deend itsel.`
le said Pakistan will continue to gain more strength with its strong
economic policies. \e hae borders with India on the east and Aghanistan
on the west and there are other challenges as well but we did not increase our
deence budget,` he said.
On the contrary there has been a substantial increase in deence
spending by India. Our priority is the welare o the masses and we want to
see all areas o the country deeloped equally,` he said. 1he unds or human
resource deelopment hae been doubled and unds or science and
technology increased.
\e are striing or the uplit o our people and will continue to do
so,` he assured. le said the unds or the parliamentarians hae been equally
distributed irrespectie o their political ailiation. Prime Minister Jamali said
the days o political ictimization are oer. Neither we hae done it, nor do
we intend to do in uture.`
1here is no political ictimization anymore as we want a culture o
tolerance, honesty and air-play` 1he goernment, he said, has completed
eleen months and has continued to carry orward the prudent policies,
economic, deence and oreign policy, initiated by President General Perez
Musharra.
In an apparent reerence to the protest in the parliament by the
opposition he said, we hae tried to take them into conidence and we treat
them as our brothers.` lopeully they too will act in a way to raise the stature
o the country and the parliament,` he added.
le said it was the motto o his goernment to work or the collectie
interest by rising aboe petty personal gains. le was appreciatie o the
expatriate Pakistanis or their remittances and said they help the country in
meeting the balance o payment.
Len what I get paid is rom the money that Pakistanis abroad
contribute and that is why I do my job as a duty to the nation.` le said it was
one o the reasons that his goernment takes eery step careully as it has an
obligation to the nation. \hateer we do, we keep country`s interests
supreme,` he added. le said rom day one he had this motto o Pakistan
irst, Pakistan last and Pakistan the best.`
Prime Minister later asked the Pakistanis to inorm him o their
problems. le said the goernment will pay US> 100,000 or the Pakistani
school at 1ehran and said, we would like to inest in our uture and want to
proide them the best possible education`.
1o a query he said he would direct Nadra to expedite the deliery o
identity cards to the expatriate Pakistanis. le also asked the Pakistan embassy
in 1ehran to prepare a easibility o a school in Meshad, where a large number
o Pakistanis reside.
IPRI lactile 68
1he Prime Minister met the Pakistanis, mostly engineers, doctors and
businessmen who came rom other cities to meet him. Prime Minister Jamali
was accompanied by the members o his entourage, including the Minister or
Inormation Sheikh Rashid Ahmed, Minister or Commerce lumayun Akhtar,
Minister or Petroleum Ch Naoraiz Shakoor and senior oicials.

Joint Communique
Larlier a joint communiqu issued at the conclusion o Jamali`s three day isit
to Iran, called or early resumption o unconditional dialogue between
Pakistan and India or resolution o the Kashmir dispute by peaceul means
and according to the wishes o Kashmiri people. Pakistan and Iran agreed to a
time-rame o two months to inalize agreements in dierent ields and set
target to boost trade to >1 billion.
1he two countries decided to conclude a Preerential 1rade
Agreement to acilitate bilateral trade. It was also decided that the Pakistani
oreign secretary and the Iranian deputy oreign minister will Soon meet to
identiy and urther strengthen their economic cooperation.`
1he two countries set up a Joint \orking Committee comprising
experts rom energy sector will soon start unctioning to inalize arrangements
or construction o a gas pipeline to the Pak-Iranian border and its possible
extension into the Pakistani territory.
1here was also an understanding or exchange o economic and
technical experts and delegations to intensiy the economic cooperation.
Pakistan and Iran also agreed to inalize arrangements or moement across
the Pakistan-Iran border at Panjgur and Saraan in Balochistan proince.
1he two countries agreed or ull and proper implementation` o
bilateral agreements and decisions o the Joint Lconomic Commission. During
the talks there was a general understanding or enhanced cooperation in all
areas, including political, security, economic, commercial, cultural, inormation,
scientiic and technological ields.
1he two countries also emphasized on the importance o a dialogue
among ciilizations and the promotion o Lnlightened Moderation or
constructie interaction between the Muslim world. 1hey also called or
settlement o disputes by peaceul means on the basis o soereign equality
and non-intererence in internal aairs o other states.`
1he premier inited Iranian President Syed Mohammad Khatami and
lirst Vice President Mohammad Reza Are to isit Pakistan. 1he isits will be
part o the high-leel consultations process between the two countries. 1he
dates o the isits to Pakistan will be worked out through diplomatic channels.
President Khatami earlier isited Pakistan in December 2002. le also
had a meeting with President General Perez Musharra at the sidelines o the
10th OIC summit at Malaysia proiding an opportunity to the two countries to
reiew and consolidate their iews on regional and international situation.

Briefing by the Ioreign Secretary during the Visit
1he two countries discussed regional situation, including Kashmir and
Aghanistan, said loreign Secretary Riaz l Khokhar ater the talks. le told
reporters the talks were held in a riendly, relaxed and accommodating
atmosphere` and emphasized on the need o enhanced bilateral relations
between the two brotherly countries.
le said, Prime Minister Jamali urged the Iranian leadership that
Pakistan had proposed agreements in six areas that need to be urther
discussed. le said the agreements coered issues o double taxation, cultural
exchanges, cooperation in customs, science and technology, in liestock, in
CNG besides one in deence cooperation.
President Khatami instructed his cabinet ministers that the
agreements mentioned by Prime Minister Jamali need to be inalized. It was
agreed that the commerce ministers and the inormation ministers o the two
countries would discuss the issues. 1he inormation ministers o the two
countries will meet \ednesday to take necessary measures to preent
aoidable propaganda`.
Mr. Khokhar said the two sides agreed that it was imperatie or
Pakistan and Iran to help in the reconstruction o the war-raaged
Aghanistan. 1hey also discussed the situation in Iraq.
Prime Minister Jamali apprised President Khatami o the steps
Pakistan took or normalization o relations with India. In this context Iran`s
relations with India were also discussed. 1he Iranian president assured that
Pakistan-Iran relations were o special nature`. President Khatami said,
Deelopment and progress in Iran-India elations could not aect Pakistan-
Iran relations.`
1he oreign secretary said Pakistan did express its concern oer the
growing presence o India in Aghanistan. During the talks President Khatami
said, the two countries share common interests` and assured that the
outcome o the talks would be implemented in an eectie` manner and with
concrete measures`.

Prime Minister's Press Conference on Return
Prime Minister Mir Zaarullah Khan Jamali said that Pakistan has accepted an
Iranian proposal to lay gas pipelines between Iran and Pakistan as India was
hesitating to make any headway on the project.
1ehran has proposed lying o gas pipeline between Iran and Pakistan
and we accepted the proposal and now technical teams will work out details,`
IPRI lactile 0
Jamali said, while addressing a pressing conerence here on 1hursday ,23
October, night at Chaklala Airbase on his return rom Iran.
1he premier said his three-day Iran isit would open new istas o
economic and trade cooperation besides boosting ties between the two
brotherly Muslim countries. I there were any irritants and misunderstandings
between the two countries, they hae been remoed during my highly
successul isit,` Jamali said.
lederal Ministers Sheikh Rashid Ahmed, Chaudhry Nouraiz Shakoor
and lumayun Akhtar Khan who accompanied the premier to Iran, were also
present on the occasion. 1he premier said during discussions with Iranian
leaders he ound their attitude positie and this augurs well or relations o the
two countries een i there was any lukewarm aspect it has been broken.
le said the two countries hae decided to hold high-leel
consultations at least once a year to maintain momentum o cooperation in
dierent ields. 1he two sides also had similar iews about curbing the menace
o sectarianism, added the prime minister.
le said the two sides hae decided to extend concessions to each
other or promotion o bilateral trade and Pakistan, Iran and 1urkey would
adopt a lexible attitude to promote trade ties amongst them.
Jamali maintained that Pakistan and Iran hae agreed to open another
border point between Sarwan in Seistan proince o Iran and Panjgur in
Makran diision to promote trade and people-to-people contact. le said the
Joint Ministerial Commission would be actiated to achiee the target o
enhanced economic interaction. Lxperts will meet in about three months to
take ollow up action proposals agreed between the two countries including
cooperation in oil and gas, customs, tari and export o Pakistani rice to Iran,`
he said.
1he premier said that it has also been decided that at media leel, the
two sides would aoid any propaganda against each other to promote
relations and understanding. Appreciating Iran`s stance on Kashmir issue said
that President Khatami has expressed concern oer Indian atrocities in
Occupied Kashmir. Jamali said he also brieed Iranian leadership on Pakistan`s
concern oer growing Indo-Israeli nexus. 1o a question about Aghanistan he
said both Iran and Pakistan agreed that they were not in competition with each
other and they would cooperate in the rebuilding o that country.
Replying to questions he said Pakistan and Iran beliee the people o
Iraq should be gien the right to goern their country. 1he Iranian
goernment would be sending a delegation to Iraq or establishing contacts
with the goerning council,` he said.
Prime Minister Jamali told reporters the Iranian leadership was
appreciatie o the stand taken by President Musharra on dierent issues
during the recently held OIC summit at Putrajaya.
1he Prime Minister beore his departure or Mashhad said during his
talks with the Iranian leadership, he reiterated that practical steps were needed
between the two counties. Otherwise the people o the two countries will be
disillusioned. \e hae to speed up and gie more importance and extra time,`
he added.
le said the understanding between the two countries to hae a time
rame was the initial breakthrough` and hoped or a positie outcome.
Pakistan, he said, openly discussed its point o iew and inormed the Iranian
leadership o its position on dierent issues.
lirst Vice-President Ase Reza said the two sides hae depicted that
the trade olume between the two countries can rise up to one billion dollars.
1he prime minister expressed his gratitude to the Iranian leaders and the
goernment or the warm welcome and said it relected the depth o relations
Iran oered Pakistan to study easibility o laying a Pak-Iran gas line,
since India was yet unwilling to be part o the project. Minister or Petroleum
Chaudhry Nouraiz Shakoor told ater a meeting with the Iranian Petroleum
Minster Bijan Namdar Zanganeh that Iran has asked Pakistan that the gas line
may be laid between the two countries.
le said Pakistan will study the proposal and see whether it is iable
or Pakistan. Pakistan currently produces around 3.4 billion cubic eet o gas
per day and has estimated gas reseres o around 42 trillion eet. 1he
petroleum experts howeer beliee that though Pakistan is currently able to
meet its requirements rom its own sources, India directly needs the gas or its
industrial and domestic use.
Mr. Naouraiz Shakoor said the two countries will sign an agreement
next month to hae greater cooperation in the ield o Compressed Natural
Gas ,CNG,. le said hydrocarbon deelopment institute o Pakistan will assist
and proide technical expertise to the Iranian Oil Ministry on the building o a
network o CNG stations in Iran.
Pakistan, he said would also oer cooperation to Iranian authorities
or promotion o Compressed Natural Gas ,CNG, industry in Iran. le said
recently a ten-member delegation o Iranian oicials isited Pakistan to
explore this area and wanted to gain rom Pakistan`s experience.
Pakistan is one o largest countries using CNG as substitute uel and
can beneit rom our experience` he added. le said the two sides discussed
ways and means to ully explore the existing potential and opportunities or
the beneit o the two countries 1he two countries, he added, could enhance
cooperation in arious ongoing deelopment actiities in the oil and gas sector
o Pakistan including onshore and oshore exploration, regional pipeline
projects, updating reineries. le said the two sides also discussed the issue o
smuggling o petroleum products and agreed or stringent measures on the
IPRI lactile 2
borders to preent this menace le said the smuggling is causing huge losses
running in billions annually to Pakistan national exchequer.

oreigv .ffair. Pa/i.tav, Vol. XXX, Issue 10, 16-31, Oct 2003, pp. 141-153.

JOI NT COMMUNI QU I SSUED ON THE CONCLUSI ON OF THE
OFFI CI AL VI SI T OF THE PRI ME MI NI STER OF THE I SLAMI C
REPUBLI C OF PAKI STAN TO THE I SLAMI C REPUBLI C OF I RAN
(21-23 OCTOBER, 2003)

lis Lxcellency Mir Zaarullah Khan Jamali, Prime Minister o the Islamic
Republic o Pakistan paid an oicial isit to the Islamic Republic o Iran rom
21-23 October, 2003 at the initation o lis Lxcellency Syed Mohammad
Khatami, the President o the Islamic Republic o Iran. 1he Prime Minister o
Pakistan was accompanied by a high leel delegation which included Minister
or Commerce, Minister or Inormation and Broadcasting, Minister or
Petroleum and Natural Resources and senior oicials.
2. As a relection o the close raternal relations between the brotherly
countries o Iran and Pakistan, the Prime Minister o Pakistan was accorded a
ery warm and cordial welcome on arrial in 1ehran.
3. Ater the welcoming ceremony at the Saadabad Complex, hosted by
l.L. Mr. Mohammad Reza Are, lirst Vice President o the Islamic Republic
o Iran, the Prime Minster o the Islamic Republic o Pakistan held oicial
talks with President Syed Mohammad Khatami and the lirst Vice President o
Iran, Mr. Are in two separate sessions on 21 October. 1he talks held in a
cordial atmosphere coered the entire range o bilateral relations as well as
regional and international issues o mutual interest. 1heir discussions were
characterized by similarity o iews on important issues. Special emphasis was
placed on enhancing bilateral cooperation, particularly in the economic sphere.
1hey noted that Iran and Pakistan shared deep cultural and historical bonds,
economic complementaries and common strategic interests. 1hey expressed
deep satisaction at the growing positie momentum in the riendly bilateral
relations between Pakistan and Iran.
4. 1he Prime Minister o the Islamic Republic o Pakistan paid a isit to
the Mausoleum o Imam Khomeini to pay homage to late Imam. le called on
the Supreme leader o Iran and had a meeting with Mr. Akbar lashemi
Rasanjani Chairman o Lxpediency Council and ormer President o Iran. le
also isited Mashed on 23rd October.
5. 1he two sides expressed their determination to urther strengthen the
bilateral relations by enhancing closer cooperation in areas including political,
security, economic, commercial, cultural, inormation, scientiic and
technological ields.
6. 1o urther strengthen bilateral economic relations, they noted a
number o mechanisms including a Joint Lconomic Commission ministerial
leel are already in place and a number o agreements hae been signed or
promotion o bilateral economic interaction. 1hey stressed the need or ull
and prompt implementation o the bilateral agreements and decisions o the
Joint Lconomic Commission.
. 1he two sides took a number o important decisions to enhance
bilateral economic cooperation, including:

a, 1o conclude a Preerential 1rade Agreement to acilitate bilateral
trade.
b, In addition to the annual bilateral consultations, loreign Secretary
o Pakistan and Deputy loreign Minister o Iran will meet soon
to identiy resh aenues to intensiy the bilateral economic
cooperation.
c, A Joint \orking Committee comprising experts rom energy
sector will start unctioning soon to inalize arrangements or
construction o a gas pipeline to the Pakistan-Iranian border and
its possible extension to the Pakistani territory.
d, Iran will supply electricity to Chaghi and Dalbandin districts in
Baluchistan proince o Pakistan, details o which will be inalized
soon.
e, lacilitate regular exchange o economic and technical
experts,delegation to intensiy economic cooperation.
, Arrangements will be inalized soon or moement across the
Pakistan-Iran border at Panjgur and Saraan in Baluchistan
proince o Pakistan.

8. 1aking note o the deelopments at the regional and global leels, the
two sides emphasized the importance o Dialogue among Ciilizations and the
promotion o Lnlightened Moderation or constructie interaction with the
\est and eectie cooperation within the Muslim world. 1hey also called or
the settlement o disputes by peaceul means on the basis o soereign equality
and non intererence in internal aairs o other states. 1hey stressed the need
or promotion o peace, tolerance and pluralism among ciilizations and
nations.
9. Both sides called or an early resumption o unconditional dialogue
between Pakistan and India or resolution o the Kashmir dispute by peaceul
means in accordance with the wishes o the Kashmiri people.
10. 1he two sides reiterated their support or the Bonn process and
endeaours o President Karzai or national reconciliation and reconstruction
o Aghanistan. 1hey reiterated their commitment to the Kabul Declaration on
Good Neighbourly Relations. 1hey called upon the international agencies and
states which attended the 1okyo meeting to honour their commitments or the
IPRI lactile 4
reconstruction o Aghanistan. 1hey noted the need or a broad based political
dispensation in Aghanistan in keeping with the wishes o all ethnic groups.
1hey emphasized the need or early restoration o normalcy and stability in
Aghanistan to acilitate peace and security in the region.
11. 1hey also agreed to reie meetings o the linance Ministers o Iran,
Aghanistan and Pakistan or trilateral economic cooperation reconstruction o
Aghanistan. 1hey also decided to enhance trilateral cooperation to combat
terrorism and drug traicking.
12. 1he two sides strongly condemned the Israeli brutal suppression o
the Palestinian people and denial o their undamental rights including the
tight to sel determination. 1hey reairmed their commitment to early
establishment o an independent Palestinian state with Al-Quds Al Shari as its
capital. 1hey also strongly condemned the recent Israeli aggression against
Syria and its aggressie designs against the Arab states which posed a grae to
the peace and security in the region.
13. Both sides expressed concern about the current situation in Iraq. 1hey
reairmed their commitment to the soereignty and territorial integrity o Iraq
and called or end to occupation o Iraq. 1hey underlined that the control oer
the natural resources o Iraq is to be exercised by Iraq and the Goernance o
Iraq is the right o Iraqi people and it should be restored to them, as soon as
possible. 1hey called or a greater role by the United Nations in restoring
Iraq`s soereignty and political independence.
14. 1hey welcomed the decision o the l0th OIC Summit or establishing
a Commission or reitalization o the organization. 1hey noted the need or
making OIC an eicient, eectie and eicacious, capable o realizing
aspirations o the Islamic Ummah. 1hey also re-airmed the need or
accelerating the process or regional economic integration within the LCO
ramework.
15. 1he Prime Minister o the Islamic Republic o Pakistan expressed his
appreciation or the warm welcome and the traditional hospitality extended by
the President, the 1st Vice President and the people o the riendly country o
Iran to him and his entourage during the isit. It was agreed between the two
sides to enhance mutual interaction through regular exchange o high leel
isits with a iew to strengthening the raternal relations between the Islamic
Republic o Pakistan and the Islamic Republic o Iran.
16. 1he Prime Minister o the Islamic Republic o Pakistan extended
cordial initations to the President o the Islamic Republic o Iran and the
lirst Vice President to pay oicial isits to Pakistan. 1he initations were
accepted with gratitude. President Khatami also reiterated his initation to the
President o Pakistan to isit Iran in the near uture. 1he dates o the isits will
be decided later through diplomatic channels.

oreigv .ffair. Pa/i.tav, Vol. XXX, Issue 10, 16-31 October 2003, pp. 154-158.
VI SI T OF DR. MOHAMMAD REZA AREF, FI RST VI CE
PRESI DENT OF I RAN TO PAKI STAN FROM 4-6 MARCH 2004

At the initation o Mir Zaarullah Khan Jamali, Prime Minister o Pakistan,
Dr. Mohammad Reza Are, lirst Vice President o Iran paid an oicial isit to
Pakistan orm 4 to 6 March 2004. 1he isiting dignitary was accompanied by
Madam Reza, three Ministers, a number o senior oicials and businessmen.
1he isit o the Iranian lirst Vice President preceded the meeting o
the Joint Lconomic Commission at the Coordinators as well as Ministerial
leels rom 3 to 4 March 2004.
During the talks between the Prime Minister and the Iranian lirst
Vice President, entire range o Pak-Iran bilateral relations was discussed. 1hey
exchanged iews on regional and international issues o mutual interest. 1he
two sides also discussed ways and means to urther enhance economic
cooperation. 1he isiting dignitaries also called on President General Perez
Musharra. 1hey exchanged iews on urther strengthened bilateral relations
especially in trade and economy and situation in Aghanistan and Iraq.
1he important engagements o the Iranian lirst Vice President in
Islamabad included oicial talks with the Prime Minster, joint press
conerence and dinner hosted in his honour by the Prime Minister. 1he Prime
Minister and the Iranian lirst Vice President also witnessed a ceremony or
signing o a number o agreements to promote bilateral economic cooperation.
On 5th March 2004, the isiting dignitary departed or Karachi.
During stay in Karachi, he laid wreath at the Mausoleum o Quaid-e-Azam,
attended a dinner hosted in his honour by the Goernor o Sindh and held a
meeting with the Pakistan business community.

Signing of Agreements
Pakistan and Iran signed seeral agreements and memoranda o understanding
to bolster economic and political cooperation. 1he agreements were signed
ollowing oicial talks between Prime Minister Mir Zaarullah Khan Jamali
and isiting Iranian Vice President Reza Are in Islamabad.
1hese include agreements on Joint Inestment Company, aoidance
|o double taxation|, custom cooperation agreement, preerential trade road
and rail transportation, banking links, anti-smuggling measures, telecom, and
gas pipelines. Jamali hoped the agreements would gie urther impetus to the
bilateral economic ties between the two countries. 1he bilateral talks coered
wide-range o bilateral and regional issues including Pakistan-India dialogue
and situation in Aghanistan and Iran.
PM Jamali noted the two countries shared perceptions on major
global and regional issues. le said the regular exercise o high leel isits
relects measure o close riendship between the two countries. le said being
IPRI lactile 6
the ounding members o the Lconomic Cooperation Organization the two
countries also owed to work or the economic uplit o the region.
le said the inance ministers o the two countries would hold a
ollow up meeting ater three months to reiew the pace o progress and
another ollow up meeting would be held ater six months to ensure that the
agreements are being ully implemented.
1he Iranian Vice President Ase Reza said besides the agreements
Pakistan and Iran also arried at some understanding on ree trade. le said
besides bilateral cooperation it was also agreed that multilateral cooperation
among Pakistan, Iran, Aghanistan and 1urkey would be pursued.
le said the two countries also had a constructie agreement` on the
reconstruction o Aghanistan.
Prime Minister Jamali said since December 2002 he has had our
meetings with President Khatami and two with his Vice President besides two
isits to Iran within our months. le was appreciatie o role o Iran in
extending support to Pakistan on the issue o Kashmir. le said President
Khatami had always called or seeking a peaceul solution to the Kashmir issue
through a dialogue.
1o a question whether Iran named Pakistan or supporting its nuclear
programme, the Iranian Vice President said the matter has already been
contradicted by Iran.
le said Iran was pursuing a peaceul nuclear programme and it
required the equipment rom ree market.
Prime Minister Jamali said the agreements between Pakistan and Iran
will bring about a positie change in the liing standard o the people and
boost the economy o the two countries. le noted that Pakistan already
getting electricity at ery competitie rates rom Iran and said they were
looking at the possibility o opening up another border point between the two
countries.

Visit to LPB display centre
1he lirst Vice President o Iran Dr. Mohammad Reza Are on Saturday highly
appreciated the quality o Pakistani exportable goods. I am pleased to isit the
Lxport Promotion Bureau ,LPB, display centre to see exportable items. 1he
goods being displayed here are o a ery good quality and will get a larger
market share in the international market`, Dr Are said ater his isit to the
display centre o Lxport Promotion Bureau ,LPB, along with a 50 member
Iranian delegation. le lauded the deelopments Pakistan has made in its
industrial sector saying these were tangible. I am happy to see a ery good
improement Pakistan has made in the ields o textile industries and
chemicals`, he added. 1he irst Vice President said that it was good news or
Pakistan-Iran Relations
Iran ,also, that Pakistan was going to get a higher share ,or its products, in
the world market with the help o improed quality and standards.
1his will also add to the better welare o Pakistani people, he
obsered. Dr. Are hoped that Muslim countries will beneit through the
bilateral and regional cooperation ,being promoted, within Islamic block. All
Muslim nations will beneit rom this cooperation that will also bring welare
to all o them,` he noted. le was o the opinion that Pakistan will play a
greater role in this emerging scenario. \e are seeing that Pakistan is going to
play a greater role in this ,regional cooperation,`, Dr. Are said. Chairman
LPB 1ariq lkram said Dr. Are has indicated interest in textile products and
garments, engineering goods, leather garments, sports goods, good items like
rice and musical instruments.
le said that Iran was currently importing leather garments rom
Lurope and Pakistanis prices were ery competitie and quality was good.
lkram said that Dr. Are has sought a close cooperation between Iranian
Lxport Promotion organization and LPB or setting up a display centre in
1ehran. le hoped that ormal export o rice and textile items will increase to
Iran ater a 20 percent duty reduction on these items. 1he LPB Chairman said
that bilateral trade will increase ater improement in road links, customs and
banking acilities.

Meeting with IPCCI Members
lirst Vice President o Islamic Republic o Iran, Dr. Mohammad Reza Are
Saturday said that his country will extend maximum acilitation and support to
priate sector under 2004 national deelopment plan. 1his 2004 plan has
been launched to ensure leading role o Iran`s priate sector towards national
and regional economic prosperity,` he said during a meeting with members o
lederation o Pakistan Chambers o Commerce and Industry ,lPCCI, here at
lederation louse.
le proposed ormulation o a joint committee to identiy acilities
and support to priate sector businessmen o the two sides. \e will also
extend support to Pakistani entrepreneurs willing to operate in Iran`, Dr Are
told lPCCI members.
le called upon priate sectors rom both the countries to enter into
joint entures and ully exploit the technical know-how and skills aailable
within their countries. le also called or urther actiation o lPCCI`s Pak-
Iran Business Council in bringing the two business communities closer which
would help strengthen the two economies.
le said the socio economic deelopments in the region and the
world oer demanded strengthening o relations between two Muslim
neighbouring countries mainly on economic ront sustainable deelopment
IPRI lactile 8
and closeness o these two countries was ery much required to surie in the
emerging regional and international challenges.`
le listed similarities between the two countries including religion,
culture, history and amiliarity to each other languages which would play
important role in promoting bilateral trade and inestment.
Iran and Pakistan are the members o LCO, G-8 and Organization o
Islamic Conerence ,OIC, which also show commonality o their interests. le
said there were some obstacles in the way o strengthening economic ties
between the two countries. loweer, he said, the Joint Lconomic
Coordination Committee would work out the solutions. \e hae almost
settled the minor issues,` he added. le said both the countries had agreed to
establish strong land, sea and air transport systems. 1his would be executed
soon, he added.
Dr. Are said that we could go beyond the estimated target o one
billion dollars trade between the two countries i more serious eorts are taken
rom both sides and the cooperation is increased. le announced the
preparedness rom Iran to actiate economic relations.
1he irst Iranian Vice President expressed gratitude to Prime Minister
o Pakistan, the Goernment and the people or their accommodating attitude
and high degree hospitality and loe or Iranis. Iranian people eel at home
while their stay here, he said.
President lPCCI, Riaz Ahmed 1ata in his welcome address, expressed
pleasure oer signing o agreements between the Goernments o Pakistan
and Iran or setting up joint inestment council, customs cooperation,
preerential trade tari, aoidance o double taxation, transit trade, expansion
o road and rail links, supply o electricity and gas and proposed gas pipeline.
le regretted that the trade within LCO block was less than 5 and
the bilateral trade between Pakistan and Iran continued to stagnate at around
3 in spite o enormous potential aailable or deelopment. le hoped that
the current isit to Pakistan by powerul delegation rom Iran would proide
an impetus or rapidly promoting bilateral trade and economic cooperation.
Mr. 1ata said the Pakistan-Iran Business Council o lPCCI has
proposed to its Iranian counterpart to hold the next joint business council
meeting in 1ehran in coming May or June. It was also suggested that an
exhibition o Pakistani products be held there, he said and hoped that the
approal rom the Iranian side would be orthcoming soon.
Minister o State and Chairman Lxport Promotion Bureau o Pakistan
speaking on the occasion said that the priate sectors o Pakistan and Iran
would hae to act as engine o economic growth. le said there is commitment
at the highest leel o the two Goernments to resole the issues hampering
deelopment o economic cooperation between the priate sectors o the two
countries.
Larlier, Deputy Minister or Commerce o Iran, Khosrow 1aj made a
ideo presentation on the economic situation o Iran and the potential or
uture economic deelopment. Vice President lPCCI and incharge N1O
resource centre, Lngr. M.A. Jabbar said both the countries should act ery ast
or remoal o tari, non-tari, and sanitary and psyto-sanitary barriers to
bilateral trade or mutual interest.
1he 58-member Iranian trade delegation included Minister o Roads
and 1ransportation, Lngineer Khorrarn, Minister or Industries and Mines,
Jehangiri, Minister o Lconomic Aairs and linance, Mazaheri, Deputy
loreign Minister, Mohsen Aminzada, Goernor General o Sistan and
Balochistan proinces, lussain Ameeni Ambassador o Iran in Pakistan.

oreigv .ffair. Pa/i.tav, Vol. XXXI, Issue III, March 2004, pp. 18-193.

PAKI STAN AND I RAN SET $1 BI LLI ON TRADE TARGET

Pakistan to get >200m in credit or inrastructure projects
1alks on gas pipeline in March
Aziz meets Rasanjani, Kharrazi

Pakistan and Iran on \ednesday signed arious agreements aimed at
increasing bilateral trade by >1 billion and set up a joint inestment company
with initial capital o >25 million.
1he our agreements and a memorandum o understanding were
signed ater talks between Prime Minister Shaukat Aziz and Iranian Vice
President Dr Reza Are.
1he two sides also agreed to establish a monitoring system under the
Joint Lconomic Council ,JLC, to keep a check on trade and inestment
Under one agreement, Iran will gie Pakistan >200 million in credit to
deelop inrastructure. An Iranian priate company will executie arious
deelopment projects under this agreement. 1he two sides decided the JLC
would meet eery six months to monitor joint economic projects and trade.
Currently, trade between the two countries is around >400 million.
In order to meet the target o >1 billion in annual bilateral trade, the
two sides agreed to amend their preerential trade agreement ,P1A, to adjust
taris. Under another agreement, Pakistan will export oranges to Iran. A
committee consisting o the commerce ministers o the two countries was
ormed to deelop action programmes to deelop trade and address tari-
related issues.
Under another agreement, Iran will increase the supply o electricity to
some parts o Balochistan rom 20 megawatts to 50 megawatts.
IPRI lactile 80
In a joint press conerence with Are, the Iranian ice president, Aziz
said his isit would urther improe bilateral economic, cultural and diplomatic
relations. I beliee the isit will be productie and useul.`
Larlier, Iranian President Mohamad Khatami termed the Pakistan
prime minister`s isit a milestone` in bilateral relations.
Are said the two countries hold special positions in the Lconomic
Cooperation Organisation ,LCO, and Organisation o the Islamic Conerence
,OIC,, but added that both organisations need restructuring.
1o a question, Aziz said Pakistan and Iran were negotiating with
Aghanistan to eliminate poppy rom the region and were cooperating against
drug traicking.
Gas pipeline: 1rilateral talks inoling Iran, Pakistan and India on a
proposed gas pipeline are expected to be held by the end o March. 1he prime
minister discussed the prospect with Iranian leaders.
Amanullah Jadoon, Pakistani minister or petroleum, said a SAARC
energy ministers` conerence would be held in Islamabad in March, which the
Indian energy minister would attend. 1he Iranian energy minister might come
to Islamabad at the same time to discuss the gas pipeline project on the
sidelines o the conerence.
le said the pipeline linking Iran with India ia Pakistan would take
around ie years to build. le said Pakistan would need to import three billion
cubic eet o gas per day in 10 years. Riaz Khokhar, oreign aairs secretary,
said Kamal Kharrazi, the Iranian oreign minister, brieed Pakistani oicials
about his recent isit to India where he discussed the pipeline project. Aziz
met with Iranian Supreme Leader Ayatollah Sayed Ali Khamenei on
\ednesday. Khamenei backed the policies o President General Perez
Musharra against terrorism and sectarianism, endorsing his concept o
enlightened moderation`.
1he two leaders discussed bilateral relations and regional and
international situation in the backdrop o challenged being aced by the
Ummah. Aziz also met Akbar lashmi Rasanjani, the chairman o the Iranian
Lxpediency Council, and discussed ways to urther strengthen the bilateral
relations between Pakistan and Iran.
1he prime minister said during the meeting that he hoped Iran would
resole its stando with the United States oer its nuclear programme
peaceully. Rasanjani underscored the need to strengthen the LCO to make it
more eectie in promoting regional cooperation. le also stressed the need to
improe road and air links to acilitate regional trade.
Aziz brieed Rasanjani on Pakistan`s growing economy. As a result o
ie years o structural reorms, Pakistan`s economy was on the rise and the
conidence o domestic and oreign inestors was at an all-time high, he said.
Kharrazi, the Iranian oreign minister, called on Aziz to discuss the situation in

Aghanistan, Iraq, Pakistan-India relations and the gas pipeline project.

Shahzad Raza, Dait, 1ive., 2 January 2005
http:,,www.dailytimes.com.pk,deault.asppage~story_24-2-2005_pg1_10

PM TO DI SCUSS BI LATERAL, ECONOMI C AND TRADE WI TH
I RANI AN LEADERS

Prime Minister Shaukat Aziz will pay a three-day oicial isit to Iran, rom
lebruary 22 to discuss bilateral, economic and trade cooperation with the
Iranian leadership.
1his will be the Prime Minister's irst isit to Iran since assuming
oice in August 2004.
le will be accompanied by Goernor Balochistan, Minister or
Narcotics Control Ghaus Bux Khan Mehr, Petroleum and Natural Resources
Amanullah Khan Jadoon and Religious Aairs Ijaz-ul-laq as well as Minister
o State or Interior Dr Shahzad \aseem and Chairman Lxport Promotion
Bureau.
1he Prime Minister will hold talks with President Seyed Mohammad
Khatami and lirst Vice-President Dr. Mohammad Reza Are.
1he talks will ocus on bilateral relations, including trade and
economic cooperation as well as regional and global issues.
In addition to bilateral matters, situation in the Middle Last,
Aghanistan, Iran and related deelopments in the region would come under
discussion. 1he isit is expected to acilitate closer understanding between the
two neighbouring countries.
1he president o Iran will host a lunch and the Vice-President a
dinner in honour o the Prime Minister. 1he Prime Minister will also call on
the Rahbar and the Chairman o the Lxpediency Council. le will lay a wreath
at the Mausoleum o Imam Khomeini.
1he Prime Minister's isit has a strong economic thrust. It will be
preceded by the 15th session o the Pak-Iran Joint Lconomic Commission.
Prime Minister's Adisor on linance Dr. Salman Shah, will leading the
Pakistan side and Iran's Minister or 1ransport Mohammad Rahmati, the
Iranian side.
1he JLC deliberations would coer all areas o bilateral economic
relations. It would also inalize a ew agreements on economic cooperation or
signing during the isit.
1he Prime Minister will pay a short isit to Lsahan and Meshed. le
will isit the shrine o Imam Reza ,AS, and oer ateha beore returning to
Islamabad on 24 lebruary.
IPRI lactile 82
1he Prime Minister's isit to Iran is part o high-leel contacts
between the two neighbouring countries. 1he new agreements signed with
Iran will add greater economic content to Pak-Iran relations.

Iran Visit Important: Aziz
1he Prime Minister Shaukat Aziz has said his isit to Iran is ery important
and eorts will be made to strengthen bilateral relations in all areas including
political, economic and people to people contacts.
1alking to newsmen in Islamabad Monday, Aziz said Iran is Pakistan`s
neighbour, the two countries hae historical ties and all dimensions o bilateral
relationship will be discussed.
le said close relationship between the two countries would improe
the situation in the region.

Iran-Pakistan-India Gas Pipeline
In reply to a question Shaukat Aziz said Iran-Pakistan-India gas pipeline will
be discussed during the isit. le said Pakistan is presently considering three
gas line projects namely, 1urkmenistan-Aghanistan-Pakistan, under-sea
Qatar-Pakistan gas pipeline and the third rom Iran.

Pa/i.tav 1ive., 22 lebruary 2005
http:,,pakistantimes.net,2005,02,22,top6.htm

FATE OF I RAN-PAK-I NDI A GAS PI PELI NE PROJECT HANGS I N
BALANCE

1he ate o the 4 billion US dollars trans-Pakistan gas pipeline, to energize
India's power hungry industrial sector with Iranian gas, seems to hang in
balance ater increasing US pressure on the participating countries to abandon
the project.
US Secretary o State Condoleeza Rice in her talks with the Pakistani
and Indian leaders during her isit early this week to the Asian countries did
not mince words about the US concerns oer the gas pipeline project.
"\e'e oiced our concerns to the Indian Goernment about the gas
pipeline with Iran. It's not only with India. \e'e similarly talked to Japan
about a gas project that they would hae because the United States has
sanctions on Iran or good reasons," Rice said.
Under a US law or the Iran and Libya Sanctions Act o 1996, George
Bush can penalize any oreign irm that inests more than 20 million dollars in
the energy sectors o either country.
1he Untied States has been exerting increasing pressure on Iran to
abandon its nuclear program, which it says was intended to build weapons
rather or peaceul uses.
Pakistani Prime Minister Shaukat Aziz who had been touting the
project as a peace-pipeline put the issue on the top o his agenda during a
recent isit to Iran.
Ater his talks with the Iranian leadership, it was announced that
petroleum ministers o Pakistan, Iran and India would meet in Islamabad in
the third week o March to discuss "easibility and technical" details, but the
proposed meeting has now been postponed.
\hile there has been no cogent reason or the postponement o the
meeting, both Pakistan and India deny any pressure to gie up the project.
"\e hae traditional good relations with Iran. \e expect Iran will
ulill all o its obligations with regard to the NP1 ,Nuclear Non-Prolieration
1reaty,," Indian Lxternal Aairs Minister Natwar Singh said ater meeting
Rice in New Delhi.
Pakistani Prime Minister Aziz also denied any pressure on Islamabad
to dump the deal. "\e hae no pressure," he said recently when asked about
any such demands rom the United States. le rather hoped the inal decision
would be made by the end o the year.
But political analysts belieed \ashington would continue to mount
pressure on Pakistan and India against the project.
"I think the Americans are tightening the noose and trying to make
sure that Iran is not helped by India or Pakistan in any way, because they know
the Iranians are desperate to get projects like the gas pipeline through,"
Pakistani political commentator and newspaper editor Najam Sethi said.
Iran contains an estimated 286.6 trillion cubic meter in proen natural
gas reseres -- the world's second largest and surpassed only by those ound in
Russia.
Indian Petroleum Minister Mani Shankar Aiyar was the irst to
disclose the increasing US pressure on India ater a meeting with the US enoy
in New Delhi, Daid Mulord, ahead o Rice's isit.
"All o us hae noted what the US concerns are but I think they too
are aware o our energy security requirements," Aiyar said.
1he Iranians, already weary o \ashington's negatie approach
towards it, hae reacted angrily to the US interention in the deal.
"I they ,the Americans, can not help in increase o regional
cooperation and stability, they should at least aoid creating diiculties. India,
Iran and Pakistan are independent countries and take their own decisions,"
said a statement issued ater the Singh-Mulord meeting.
1he 2,5 km pipeline proposed in 1996 neer took o mainly owing
to shaky relations between the two rials India and Pakistan.
IPRI lactile 84
India initially showed reluctance oer the passage o gas line through
Pakistan, citing security reasons and tying the project with the string o
conditions that include the Most laored Nation status rom Pakistan.
But it inally indicated its willingness to join unconditionally ater
Pakistan owed to go ahead alone. 1he pipeline i constructed could be
operational by 2009.
Pakistan is eager or the project because it would hae access to the
gas and earn an estimated 600 million dollars a year in transit ees.
loweer apart rom the US pressure, the project aces other security
risks.
1he recent spate o attacks on Pakistan's natural gas installations and
pipelines in south western Balochistan proince by insurgents remains a
serious threat.
But the Pakistani leadership has time and again reiterated to take all
measures to saeguard its national assets. "\e hae assured India a secure
energy corridor. 1his is a win-win proposition or Iran, India and Pakistan,"
Prime Minister Aziz said.

20 March 2005
http:,,english.peopledaily.com.cn,200503,20,eng20050320_1516.html

HOW PAKI STAN CAN HELP I RAN

A statement issued recently by a number o important persons, associated
with oreign aairs, has stressed the importance o a close Pakistan-Iran
relationship and warned against diisions and misunderstandings created
wittingly or unwittingly.
1he signatories to the aboe statement include two ormer oreign
ministers, one ormer inormation minister ,now secretary-general o the
ruling PML-Q,, a ormer interior minister and a ormer oreign secretary.
Unlike the issues o social reorm, clerical power, relations with the
US, nuclear capability, inlation and unemployment, relations with Pakistan
were not an issue in this election campaign in Iran. 1hereore, the electoral
ictory o Ahmadinejad is not likely to change materially the present state o
Pakistan-Iran ties - a relationship o neighbourly interaction in economic and
other ields, at times marked by recurring suspicions and misgiings, in
contrast to the close alliance and special relationship o yesteryear
characterized by deep mutual reliance and trust.
\hile this discussion deals with the call contained in the statement by
ormer oreign minister, Mr Agha Shahi and other dignitaries, or saeguarding
and promoting Pakistan-Iran ties and is not a commentary on the election
results. loweer, a brie summing up o the post-election scenario would be
in order beore returning to the main theme o Pakistan-Iran relations.
Representing a younger generation o hardliners, Mahmud
Ahmedinejad, with his ultra-conseratie image and his roots among the
pious poor`, seems to hae signiicantly expanded his natural constituency, as
the outcome o the election shows. \hile running closely with lashmi
Rasanjani in the irst round o elections ,19 per cent plus against 20 per cent
plus or Rasanjani,, his landslide ictory in the run-o election relects the
twin pull o the religious right and the economic hae-nots. 1he ote appears
to hae split broadly along class lines.
Beyond the aboe considerations, it would be premature at this stage
to predict a likely rollback o the modest reorms that President Khatami had
introduced, or to assume any signiicant hardening o Iran`s nuclear posture or
the ruling out o any improement o relations with the US. 1hese ital issues
transcend groups or personalities and are not amenable to easy choices. 1he
one certainty that has emerged, howeer, is the continuing ability o the
unelected religious leadership to inluence the course o eents and the
growing consciousness o the economically under-priileged.
Notwithstanding the expected strong rhetoric rom the newly elected
president on the nuclear programme and relations with the US, a most
important message in Ahmedinejad`s initial statement was the airmation o
moderation, peace and coexistence` and his pledge that no extremism will
be acceptable to his goernment.` 1here is also indication that talks with the
LU on Iran`s nuclear programme and wider cooperation will continue.
Since the early years o Pakistan, the ainity o geopolitical interests
between the two neighbours has been mutually recognized. ledged in, as
Pakistan is, by an adersarial India, an unstable and turbulent Aghanistan and
the Russian lederation, which has not gien up its reserations about Pakistan,
Iran is its only secure land link to the outside world.
1he disclosure by Iranian sources o the unortunate role o Pakistani
,and other, middle-men in the context o Iran`s nuclear programme and the
resultant damage to Pakistan`s standing in the outside world ,particularly the
US, had eoked, understandably, an angry response rom the Pakistan
leadership. A recent statement about Iran`s anxiety to acquire nuclear military
capability, attributed to Pakistan`s president, has subsequently been denied by
President Musharra.
1he deterioration in Pakistan-Iran relations during the 1990s resulted
rom their conlicting interests in Aghanistan and diergent postures in
relation to the 1aliban, as also rom rialry oer economic opportunities in
Central Asia and the rise o sectarian terrorism in Pakistan. 1he strong Iranian
reserations about the 1aliban were exploited by India as a means o policy
conergence with 1ehran on Aghanistan. 1he end o Pakistan`s support or
the 1aliban eliminated a major source o Pakistan`s riction with Iran.
lor Iran`s part, the importance o political and economic cooperation
with major Asian states, especially with a country o India`s size and
IPRI lactile 86
importance, was enhanced during the mid-1990s by the US drie to isolate
Iran economically and by Iran`s need to look or economic partners beyond
the Gul.
1he growth o undamentalism in Pakistan during the Zia period and
increasing sectarian terrorism had created doubts in the Iranian mind about
the aailability o a congenial enironment or promoting Pakistan-Iran
relations. Deterrent and eectie measures against sectarian terrorists would
not only saeguard Pakistan`s ital interests in domestic stability and economic
deelopment but also remoe suspicions and tensions in relation with Iran.
It is important to note, howeer, that the signiicant political and
economic inroads made in Iran by India during the period o Pakistan`s
estrangement with Iran will continue to act as a limiting actor on those
aspects o Pakistan-Iran relations, political or economic, which impinge
directly on India.
In the sphere o Pakistan-Iran economic cooperation, the arious
proposals or joint entures and related projects ought to be approached as an
integrated package, taking into account the interests o both countries and
aoiding oot-dragging as in the past, oer arious projects on grounds o
perceied comparatie gains or costs.
Now, or the irst time in recent years, with the end o the 1aliban era,
Pakistan and Iran share, both an ainity o security interests in the region as
well as a complementarily o bilateral and regional interests in economic
cooperation.
Keeping in iew their respectie interests and policies is-a-is Central
Asia and Aghanistan, it should not be beyond the diplomatic ingenuity o
Pakistan and Iran to work out a common meeting ground. 1he potential or
economic cooperation with the Central Asian states and the prospects o
transit routes inoling export o oil and gas are strong enough to permit
productie collaboration, as long as regional states do not become a cat`s-paw
o outside powers. 1he on-going progress with regard to the proposed Iran-
Pakistan-India gas pipeline, in spite o US opposition, is an instance o
commonality o interests.
Perhaps no country is as well placed as Pakistan with regard to the use
o its good oices in promoting understanding and normal relationship
between the US and Iran. \ith both o these states Pakistan has a close
relationship in ital political, security and economic spheres. \hile Pakistan`s
diplomacy has many achieements to its credit - in the establishment o
Sino-US relations and eorts to promote Gul-Iran harmony, it has not been
as eectie in lessening US-Iran tensions and the resultant dangers to the
region.
It is important or the world to take note o Iran`s security concerns.
Its security enironment has darkened ominously since 9,11 with US orces
operating in its neighbourhood - in Aghanistan and Iraq. \ith the
occupation o these two countries, Iran has become the prime target o neo-
conseratie elements and Zionist lobbies. Since the Iranian reolution, a
number o groups, many with questionable political agendas, hae inluenced
the shaping o US policies on Iran, thus creating political hurdles in the way o
a rapprochement.
Since 80 per cent o Iranians aour a rapprochement with the US,
\ashington should take note o this positie actor by ending talk o regime
change, which only seres to harden the stance o the leadership and other
political elements in 1ehran. Lasing o US economic sanctions would also be
an important step towards reconciliation with Iran. On the issue o nuclear
deelopment or peaceul purposes, 1ehran should aoid giing any excuse to
its antagonists by resuming enrichment o uranium in the current tense
enironment, notwithstanding the strong Iranian eelings about the
achieement o a sel-reliant nuclear uel cycle capability.
1he writer is a ormer ambassador.

Mahdi Masud, Darv, 30 June 2005
http:,,www.dawn.com,2005,06,30,op.htm45

I RAN-PAKI STAN-I NDI A GAS PI PELI NE OFF THE GROUND BY
NEXT YEAR: AI YAR

Indian Petroleum Minister Mani Shankar Aiyar on Monday expressed the
conidence that ollowing the on-going preliminary talks with the Iranian and
Pakistani oicials, the Iran-Pakistan-India gas pipeline project will be "o the
ground by early next year".
1he Indian minister stated this at a press conerence ater holding
extensie talks with his Pakistani counterpart Amanullah Khan Jadoon and
meeting Prime Minister Shaukat Aziz in Islamabad.
Aiyar reerring to his talks on the Iran-Pakistan-India gas pipeline
project described these as "great and historic" beginning.
Pakistan and India hae ormed a Joint \orking Group, to intensiy
interaction on the project and deliberate on its technical, legal and inancial
aspects.
"1he time-line or the Joint \orking Group has been laid down and
they would come to a decision within course o this year and the project would
be able to take o the ground by early next year." Indian petroleum minister
said Jadoon will be isiting India by August while he would be coming back to
Pakistan by Noember.
"Geography has placed Pakistan and India to some o the largest gas
reseroirs and by jointly accessing these, our two countries can accelerate their
high economic growth rates," he added.
IPRI lactile 88
1o a question about India's security concerns, he said the sincerity o
Pakistan in addressing this issue was "not the question".
A statement issued by the Pakistan Petroleum Ministry on Monday
said that India has "showed its interest to join gas import projects or the
mutual beneit o the two countries" At the end o the second day o talks
between Pakistan-India on gas pipeline projects, Aiyar on Monday met
Pakistan's Prime Minister Shaukat Aziz.
1he Indian delegation would call upon the president o Pakistan and
other important goernment unctionaries on 1uesday beore proceeding back
to India.
It is expected that a joint communiqu would also be issued 1uesday.
Aiyar's isit to Pakistan is seen as the irst step to explore not only the
easibility o a tri-nation gas pipeline rom Iran to India ia Pakistan, but also
the possibility o cooperation in oil and gas, including inestment and trade
opportunities.
Aiyar who is on a two-week isit to Pakistan, Azerbaijan, Iran and
Qatar arried in Pakistan on Saturday or a three-day isit heading an 11-
member delegation.
1he Indian petroleum minister is also expected to meet Commerce
Minister lumayun Akhtar on 1uesday.
1he Pakistani oicial was not aailable on Monday due to
presentation o budget drat to the National Assembly today, Aiyar told
reporters.
Pakistan and India are discussing the proposed 2,5-kilometer energy
corridor in Pakistan to delier gas rom Iran's South Pars ield to the Indian
border.
Iran and India hae been talking about a pipeline since 1994 but
longstanding hostility between India and Pakistan on Kashmir has hindered
the multi-billion dollar plan.
Pakistan has agreed to join the project bilaterally i India ailed to join
it.

R^., 6 June 2005
http:,,www.payand.com,news,05,jun,1034.html

PAKI STAN-I RAN TI ES ARE DEEPLY ROOTED I N HI STORY

1ies between Pakistan and Iran are deeply rooted in history and hae had a
strong inluence on all aspects o the daily lies o the people o the two
countries. 1he impacts o the centuries old ties are eident in the religion,
language, culture, architecture, literature and music o the two countries.
In an interiew with Iran Daily, the Press, Lducation and Cultural
Counsellor o Pakistan Lmbassy in 1ehran, Rashid Ahmad, spoke about the
range o common cultural ainities between Iran and Pakistan. Persian and
Urdu scripts are irtually identical, the music is ery similar, poetic themes are
common and the perspectie on culture and art is the same. 1he people o
Pakistan and Iran hae a common ision and a promising uture, said the
Pakistani diplomat.

Lxcerpts of the interview:
IRAN DAIL\: low do you see the bilateral arrangement between Islamic
republics o Iran and Pakistan in the cultural and education ields
AlMAD: Pakistan and Iran share a common cultural heritage. 1he
bonds o similarities between the two countries derie their strength rom
requent interaction at the people to people and goernment to goernment
leel. Iran was the irst country to extend recognition to the new state o
Pakistan in August, 194. lrom that day till now, there has been no looking
back on the deelopment o relations between the two neighboring countries.
1his is but natural gien the many commonalities that the peoples o the two
countries share.
\e hae a shared history, we possess a common culture, we hae
many customs and traditions in common. laiz Shirazi and Omar Khayyam
are household words in Pakistan as is Iqbal in Iran, aboe all we are linked
together by the indissoluble bond o our common aith Islam. Indeed,
relations between Pakistan and Iran hae traditionally been close, cordial and
cooperatie. Pakistan and Iran are perhaps the only neighbors in the region
who hae no territorial dispute.
Could you tell us more about the media cooperation between the two
countries
Pakistan-Iran cooperation in media, culture and education is goerned
by the Pakistan-Iran Cultural Agreement o March 9, 1956. Under this
agreement, cultural exchange programs are signed between the two countries
rom time to time. 1he latest our-year cultural exchange program was signed
in Islamabad during the isit o Iran`s lirst Vice President Dr. Mohammad
Reza Are to Pakistan rom March 4-6, 2004.
1he Lxchange Program 2004-200 is a comprehensie document or
blue print or action that encompasses almost all possible ields o cultural
cooperation between the two countries. \e share a common cultural heritage.
A large number o Iranian scholars hae written on Iqbal. Similarly, Persian
literature is popular in Pakistan.

At what level is Persian language taught in Pakistani schools?
Persian is oered as an electie subject rom class VI to class XIV in
Pakistan`s educational institutions. Lery middle school and upward institution
employs at least one Persian teacher.
IPRI lactile 90
Pakistan has recently reied the Chair or Urdu and Pakistan Studies
at the 1ehran Uniersity and a scholar rom Punjab Uniersity, Dr. 1ehseen
liraqi has been appointed by Pakistan to assists the Urdu aculty o 1ehran
Uniersity where about 80 students are studying Pakistani language.
A twele member delegation o scholars and writers rom Iran isited
Pakistan in lebruary this year to inalize arrangements or utilization o rare
Persian scripts aailable in Pakistan`s libraries. A similar delegation rom
Pakistan comprising Persian scholars and proessors rom Punjab Uniersity
Lahore is planning to come to 1ehran shortly.
Urdu literature is heaily indebted to Persian, its similes, metaphors
and adages. likayat-e Saadi are commonly used by the people o Pakistan.
Qawwali, a popular art perormed at religious shrines in Pakistan deries its
strength rom Persian poetry. \e are expecting a Qawwal Group rom
Pakistan coming to Iran sometimes next month to perorm at the Rajab
celebrations being arranged by Isahan Municipality.
Pakistan 1eleision and IRIB are working on a joint project to co-
produce a ilm on the lie o Allama Iqbal and laiz.
Recent press reports indicate that Pakistan has decided to send back
oreign students studying in Pakistanis madrasahs. \ould the decision to
repatriate oreign students include Iranians studying in medical and
engineering uniersities in Pakistan
Let me be clear that oreign students studying in proessional
institutions like medical colleges and engineering uniersities o Pakistan
would not be aected at all by the new law or ordinance. 1he past system o
oering some seats by Pakistan to students rom riendly countries like Islamic
Republic o Iran would continue. In act, Pakistan Lmbassy, 1ehran has, just a
ew days ago, requested the Iranian loreign Ministry to send its
recommendations or admission o Iranian nationals in medical and
engineering institutions o Pakistan. May I also add here that or the last about
15 years, Pakistan has been oering eery year 28 seats to the Iranian students
under Pakistan 1echnical Assistance Program ,P1AP, in the disciplines o
engineering, MBBS, BDS and B. Pharmacy. In addition to this, a number o
Iranian students obtained admission in arious educational institutions o
Pakistan on sel-inance basis ,SlS,.

How many Iranian students are in Pakistan?
It would be diicult to gie the exact number o-hand. A majority o these
students are studying in medical and engineering institutions under P1AP.
Some 10 or 12 students are doing specialization in disciplines like
ophthalmology. Some are studying non-proessional disciplines like
International Relations at Karachi Uniersity and Quaid-i-Azam Uniersity

Islamabad ad so on.

8 August 2005
http:,,www.iranmania.com,News,ArticleView,Deault.aspNewsCode~34096&N
ewsKind~Current20Aairs

I RAN AND PAKI STAN FOREI GN MI NI STERS CALL FOR
ENHANCED COOPERATI ON

Iran`s loreign Minister Kamal Kharrazi on lriday discussed bilateral relations,
regional and global issues with his Pakistani counterpart Khurshid Mehmood
Kasuri, IRNA reported rom Islamabad.
1he Iranian minister, who called on Kasuri here at the Ministry o
loreign Aairs, exchanged iews on regional cooperation during the meeting.
Kasuri, lauding Iran`s role, said that the Islamic Republic o Iran was a
source o stability in the region, adding 1ehran and Islamabad could boost
bilateral cooperation in all ields o mutual interest.
le pointed out that the \estern countries under one pretext or the
other were building pressure on the Islamic nations. In this context, he made a
special reerence to propaganda against Iran`s peaceul nuclear technology, and
alleged cooperation by some other states in this context.
1he minister expressed his delight oer increased relations between
Iran and Pakistan and added both the countries should ocus on enhanced
cooperation in economic, culture and other ields. Kharrazi arried here on a
one-day isit as part o his our-nation tour that included China, India and
Japan, besides Pakistan.
1he minister laid stress on exploiting the potentials in arious sectors
or mutual adantage o Iran and Pakistan. Reciprocating to Kasuri`s
obserations, Kharrazi stated, "1ehran attaches great importance to its
relations with Islamabad and both the countries should take steps to help
establish peace in the region".
1he Iranian minister maintained that it was imperatie or all the
neighbouring countries to extend help to Aghanistan goernment and join
hands in eorts aimed at restoration o peace and security in the war-torn
country.
"1he neighbouring countries should gie top priority to contribute to
peace and reconstruction eorts in Aghanistan," the minister emphasized.
Kharrazi was o the iew that nuclear arms race would not help the
eorts or sustainable peace instead add to deadly weapons stockpile.
"On this ery basis, Iran has already proposed denuclearization o the
Middle Last," the minister pointed out.
IPRI lactile 92
Iran`s top diplomat said that the media and related organizations
should accord due priority to promotion o Iran-Pakistan relations,
saeguarding their interests

http:,,www.payand.com,news,03,aug,1153.html

GOOD DECI SI ON ALL THE SAME

Despite opposition rom \ashington, Pakistan and Iran hae agreed to go
ahead with a bilateral pipeline project bringing gas rom Iran. 1he US is
ehemently opposed to any country in the region buying gas rom Iran. India
is taking too long to make up its mind, obiously under pressure rom the US,
whether or not to join what was originally meant to be a trilateral project.
Pakistan too has to cope with the US pressure. But it seems to hae decided to
take the plunge, come what may, in its sel-interest. Iran, on the other hand, is
being threatened with more sanctions. But 1ehran seems to beliee that the
US would not take the risk o pushing up the world oil prices still urther by
applying sanctions aecting the lows o oil and gas as well rom that country.
Pakistan`s gas deposits are depleting ery ast as a result o a rapid increase in
demand induced by an accelerated pace o economic growth in recent years
1he current aailability o gas is expected to increase by 50 per cent in the next
ie years. Much o this will come rom new ields like Sawa, Zamzama and
Bhit Shah. loweer, it is estimated that by 2009 the country will ace a
shortall o 600 mmcd o natural gas despite the recent gas discoeries. 1o
meet this widening gap between demand and supply, Pakistan has been
looking or some time at three projects: the 1urkmenistan-gas pipeline ,1AP,,
the Qatar-Pakistan ,QP, underwater gas pipeline and a pipeline coming rom
Iran and going to India ia Pakistan ,IPI,.
Because Aghanistan is still not ery sae or a gas pipeline to pass
through it and because the one going underwater was too costly, Islamabad
was naturally inclined towards the IPI. Besides, there was the possibility that
Pakistan would earn about >500 million a year by way o transit ee i the
Iranian gas was piped to India through its territory. On the other hand, as the
pipeline could be extended at some uture date to China ia Bangladesh and
Myanmar, Iran stood to gain a ast market or its gas which it had in plenty.
Clearly, the pipeline project has the potential to yield immense political and
economic beneits to the countries o the region by promoting
interdependence and reducing the massie trust deicit rom which all o them
suer at the moment. Pakistan also saw the prospect o the proposed pipeline
or stabilising its relations with Iran and reducing tensions with India. New
Delhi`s dependence on Pakistan to meet its energy requirements was to hae
persuaded it to maintain good relations with Islamabad and desist rom
harbouring any hostile designs against its smaller neighbour. But American
pressure seems to be working on India.
All the beneits that would hae accrued to the region i the IPI had
gone through may now hae to wait or some positie turn in world aairs.
Meanwhile, the change o the trilateral project into a bilateral one is seen to
hae reduced the wider prospects o the gas pipeline project. 1hereore, in the
bilateral arrangement 1ehran is said to be asking or a price higher than the
one it had proposed or the trilateral pipeline. One hopes that the two sides
would agree on a price that is both realistic and aordable.

Darv, 2 May 2005
http:,,www.dawn.com,2006,05,02,ed.htm

PAKI STAN, I RAN DECI DE TO SET UP JOI NT I NVESTMENT
COMPANY

Pakistan and Iran decided on 1hursday to establish a joint inestment
company to be based in Karachi with a capital o >25 million to promote trade
and economic relations between the two countries.
loreign Minister Khurshid Mahmood Kasuri and his Iranian
counterpart Manouchehr Mottaki took the decision during a meeting here at
the loreign Oice.
1he Iranian oreign minister coneyed his country's determination to
join Pakistan in the expansion o the road and railway inrastructure between
the two countries. le said that Iran had decided to establish a branch o
Iranian Milli Bank in Karachi.
1he two oreign ministers also discussed other aspects o bilateral
relations and reiewed regional deelopments, including the situation in Iraq
and Aghanistan, as well as other international issues o mutual concern.
1hey discussed urther measures to promote regional cooperation
within the Lconomic Cooperation Organization ,LCO,, o which both
countries are ounding members.
loreign Minister Khurshid Kasuri on 1hursday reiterated Pakistan`s
principal stand that Iran issue should be resoled through diplomatic means
alone as resort to coercie methods would only endanger the regional security
and stability.
Kasuri reiterated this stance during a meeting with his Iranian
counterpart Manouchehr Mottaki in which they reiewed the regional
deelopments including the situation in Aghanistan and Iraq.
Kasuri said that being a signatory o the NP1 Iran has rights and
obligations. loweer he underlined the need or lexibility by all sides to
achiee a mutually acceptable solution to the issue.
IPRI lactile 94
Mottaki was here as head o Iranian delegation in 16th session o the
Iran-Pakistan Joint Lconomic Commission during the two-day deliberations
called on Kasuri in the loreign Oice.
1he two oreign ministers also discussed other aspects o bilateral
relations besides discussing measures to urther promote the regional
cooperation within the Lconomic Cooperation Organisation ,LCO, o which
both the countries were ounding members.
Mottaki, during the meeting, coneyed Kasuri the Iranian decision to
ratiy the Preerential 1rade Agreement ,P1A, signed between the two
countries in 2005.
1he P1A would contribute to expansion o bilateral trade and enable
the two countries to meet the target o > 1 billion in annual turnoer set by the
prime minister. 1he oreign minister welcomed the Iranian decision and elt
and elt that it would go a long way in achieing the old ision o RCD, which
has now been adopted by the LCO.
1he two countries hae also decided to establish a joint enture
company to be based in Karachi with the capital o > 25 million. Mottaki also
coneyed his countries determination to join Pakistan in expansion o the road
and railway inrastructure between the two countries and decision to establish
a branch o the Iranian Milli Bank in Karachi.

Dait, 1ive., 26 May 2006
http:,,www.dailytimes.com.pk,deault.asppage~20065C055C265Cstory_26-
5-2006_pg5_2

UNEASY TI ES WI TH I RAN

Notwithstanding the und o goodwill that exists among the people, the
relationship between Pakistan and Iran is ar rom ideal and is in act
characterised by an inexplicable coldness. A talk with a cross-section o Iran`s
top leadership leaes no one in doubt that Iran is ery keen to strike an
understanding with Pakistan on regional issues, especially Aghanistan, but all
o them complain - or perhaps coness - that something stands between
the two countries and things do not moe.
Diplomats like loreign Minister Manoucheher Muttaki and nuclear
negotiator Ali Larijani sot-pedalled the issue and merely emphasised the need
or closer ties, implying the absence o the degree to which they wished to see
the relations between the two countries. But others like ormer president
lashmi Rasanjani and A.N.S. Khamoushi, chie o the Iranian Chamber o
Commerce, Industry and Mines, were less reticent.
\hateer the topic o discussion - the nuclear issue, Iraq, the ticking
bomb that is Lebanon or American policies in the Middle Last - Iranians
would ultimately ocus on Aghanistan when it comes to relations with
Pakistan. In brie, the Iranians are upset, i not hurt, by our Aghan policy,
past and present. 1hey emphasise that a common Pakistani and Iranian
approach to the Aghan issue will help all the three countries, conersely, the
absence o an Iranian-Pakistani understanding on Aghanistan has created
immense problems or the region. 1hey think the key to stability in the south-
west Asian region is an understanding between 1ehran and Islamabad.
An indication o Iran`s keenness to improe relations with Pakistan
and project its iews to the Pakistani people through the mass media was to be
seen in the interiews arranged or the seen-man media team rom Pakistan
that isited Iran towards the end o last month. Normally, it would not be
possible or men like Mutakki, Larijani and Rasanjani to meet isiting
newsmen rom any country on a short notice, but in our case the meetings had
been planned well in adance and the smallest o details taken care o.
So were the meetings with Mr Mohammad lossein Saar larandi,
Inormation Minister ,\azir-i-larhang wa Irshsad-i-Islami,, and the chies o
Iran`s leading newspaper groups, including lossein Shariatmadari, Supreme
Leader Ali Khamenei`s representatie and president o the Kayhan Group,
besides editors o Aitemad-i-Milli, Persian daily Iran, Lnglish Iran Daily and
Arabic daily al-\aaq, and we knew how desperately the concerned oicials,
led by Mohammad Khudadi, Iran`s out-going consul general in Lahore, tried
or a meeting with President Mahmoud Ahmedinejad, who unortunately had
a hectic schedule because elections to the Guardian Council were approaching.
Muttaki and Larijani rerained rom criticising Pakistan, but Rasanjani minced
no words, and een though the oicial transcript o his talk with us omitted
much o his criticism o Islamabad`s policies, what he actually told us was a
true barometer o the Iranian leadership`s eelings towards Pakistan. le did
not attach much importance to 9,11 in the context o Pakistan-Iran relations
and said the slide in their relationship had begun beore the terrorists
destroyed the \1C. le also said Iran was concerned oer the situation in
Quetta`, by which he obiously meant Balochistan.
1he shockingly low olume o trade ,>400 million, and the irtual
absence o meaningul economic cooperation between the two countries
testiy to the absence o political warmth between the two countries. lew
Pakistanis know that PIA does not ly to 1ehran. One reason is that Iranian
authorities insist that PIA must treat 1ehran as a terminus. 1his makes a
Karachi-1ehran-Karachi run uneconomical. On the contrary, Iranian airlines
Mahan is making money by carrying Pakistani experts to Britain because
Islamabad has allowed it to ly rom Lahore to Britain.
In terms o the truth about Iran`s economy and the state o economic
relations between the two countries, the most ruitul meeting turned out to be
that with Khamoushi, whose name means silence but who turned out to be
highly articulate. Iran is an oil-exporting country, but according to non-Iranian
sources, its reining capacity is low and the country imports 50 per cent o its
IPRI lactile 96
POL requirement. 1he oil and gas industry needs heay inestment, because
most machinery is old, but according to Khamoushi not too much` oreign
inestment has taken place, een though 1ehran has oer the last two years
liberalised inestment laws.
At least 40 per cent o the people lie below the poerty line, and the
goernment must create 50,000 jobs a year i the unemployment rate ,11 per
cent, is to be brought down, but at present less than 300,000 jobs are being
created annually in a country where 5 per cent o the people are young.
Islamic Iran does not allow any oreign banks to operate, but Pakistan
allowed an Iranian bank to open a branch in Karachi, but there has been no
progress because the Iranian side wants the minimum requirement or paid-up
capital to be reduced. Also, as Khamoushi inormed us, Pakistani and Iranian
companies cannot open letters o credit in each other`s banks, and it must be
done ia London or some third country capital. According to Khamoushi, the
two countries hae trade ties with oer 100 countries, but nowhere do they
come across such a diiculty. Khamoushi wondered why the two central
banks cannot get together to sort this problem out.
Iran produces 1.2 million cars a year, but Pakistan does not allow their
import. 1he result is that imports into Pakistan are conined to carpets, dry
ruit and LPG cylinders. Iran produces excellent grapes, apples and bananas,
but its citrus ruit is o a poor quality, and there is certainly a demand or
Pakistani kinos. But there is ery little trade by land, and most Pakistani
exports go to Iran ia Dubai, thus increasing the cost. Besides, during the
season when Pakistan produces the best quality kinos, Iran increases tari.
Similarly, during the last three years, Iran has increased import duties
on items traditionally exported by Pakistan - rice 150 per cent, citrus ruits 45
per cent, sports goods 65 per cent and garments 50 to 150 per cent. 1he tari
on Pakistani rice is high and signiicantly lower or Indian rice. A Pakistan
diplomat who did not wish to be identiied said that in matters o trade Iran
gies concessions to India. Iran has been supplying 30mw o electricity to
neighbouring areas in Pakistan since 2002 under a three-year agreement, and it
has now been extended by another three years. An agreement is likely to be
signed or the supply o 100 mw o Iranian electricity to Gwadar.
Khamoushi was critical o the two goernments, and perhaps out o
politeness rerained rom holding Pakistan alone responsible or the lack o
worthwhile economic ties, but what the chamber chie did not tell us was that
his oice had rustrated eery attempt by Pakistan`s ambassador during the
last nine months to meet him ,and the chie o the Iranian radio and 1V
organisation,. le was right perhaps when he said that it was the absence o
political warmth between them that stood in the way o a meaningul
economic relationship. Somehow`, he said, we cannot work together, een
though the potential or trade is ery high.`
Perhaps nothing better illustrates the state o Pakistan-Iran relations
than the ate o Pakistan`s Zahidan consulate. Spread oer a huge area since
the British days, the consulate has been in danger o collapse because Iranian
authorities hae not allowed repairs to be carried out to a building that is more
than 60 years old. Oer the years, the Iranians hae been nibbling on the land
and want Pakistan to moe the consulate to a new site. I it is not clear why
the Iranian authorities want the consulate to moe away and why they
wouldn`t let repairs to be carried out, it is equally inexplicable why Pakistani
authorities do not choose to moe to a new site and remoe a source o
riction.
A rustrating experience during our isit was lack o an opportunity to
meet and mix with common Iranians. All persons we met during what turned
out to be a tiring 9am-to-10pm schedule were goernment unctionaries and
newspapermen belonging to the goernment-controlled media. A possible isit
to the Danishgah ,uniersity, did not materialise, and the only non-oicial
Iranians we talked to in 1ehran and Meshhed were hotel receptionists and
waiters.
1he print media shows the Iranian establishment`s diision between
conseraties and reormists. Newspapers and journals belonging to the latter
category are persecuted by the judiciary dominated by hard-line conseraties.
In September, pro-Khatami daily Sharq was banned or publishing
blasphemous and anti-Islam articles`, though its real proocation was a
cartoon deemed insulting to the president, and its successor, Rozegar, was
banned ater six days o publication. 1wenty editors and 35 other journalists
were prosecuted this summer, and the papers banned included the
goernment-controlled Iran Daily or publishing an anti-Azeri cartoon, and it
restarted publication a ew months later with a new team o journalists.
Kayhyan is among the most inluential conseratie dailies, and it
considers it its Islamic duty to report on reedom struggles by Muslims in
bondage. lor that reason, it gies ample coerage to happenings in Indian-
occupied Kashmir.
Aitemad-i-Milli is an important reormist daily, loyal to Mehdi
Karrubi, Majlis Speaker. Oer a chillo kebab lunch, its editor told us less about
his paper and more about the injustices to Karrubi and the alleged rigging o
last year`s presidential election when Karrubi was ousted in the irst round.
On the whole Iranian newspapers do not print anti-Pakistan material,
though they do produce statements by Pakistani opposition leaders. 1he
exception was an attack last month on Pakistan`s Aghan policy by Lnglish
daily Iran News, though it printed the Pakistani Press Counsellor`s response
promptly.
1here are ie 1V channels, all goernment-owned, satellite dishes
remain illegal and the only oreign channel aailable is the BBC, which is
shown 15 to 30 minutes late ater being etted. Internet sites run by Iranian
IPRI lactile 98
dissidents abroad are careully monitored and blacked out, and a special court
has been set up to try Internet crimes`.
1he writer isited Iran recently as a member o a seen-man media
delegation.

Muhammad Ali Siddiqi, Darv, 6 December 2006
http:,,www.dawn.com,2006,12,06,op.htm

PAKI STAN-I RAN TRADE TI ES

As the isiting Iranian deputy commerce minister on 1uesday oered Pakistan
land transit acilities or trade with Central Asia and Russia, loreign Minister
Khurshid Kasuri dashed to 1ehran to sort out the Iran-Pakistan-India gas
pipeline problems. 1he moes come ater President Musharra called his
Iranian counterpart earlier, stressing the need to expand bilateral relations. Iran
is equally keen on aailing itsel o transit acilities through Pakistan or
increasing its trade with China. 1ehran also wants to raise the existing bilateral
trade stuck at just oer >600 million a year to a billion-dollar mark or a start.
Increase in rice imports rom Pakistan tops its agenda, but this cannot
materialise until Iran cuts the heay taris on direct import o Pakistani rice
and een oranges. 1he absence in Pakistan o a big` exporter to Iran is cited as
hampering adance in bilateral trade. Meanwhile, Islamabad has granted
permission or Iranian banks to open their branches in Pakistan to urther the
prospects o bilateral trade.
Indeed, immense potential exists or trade in arious commodities
between Pakistan and Iran because o the two countries` geographical
contiguity and hence lower transportation costs. loweer, this has remained
unrealised since the Regional Cooperation or Deelopment days o the 1960s,
the Pakistan-Iran-1urkey council was inally buried ater the 199 Iranian
reolution. Political dierences with 1ehran, mainly oer Aghanistan, in the
ollowing years hae constrained Pakistan and Iran rom moing to a higher
leel o cooperation in arious ields.
loweer, the saing grace all along has been that despite their
dierences, neither Pakistan nor Iran has pointed accusatory ingers at each
other. 1he opening up now seen on the part o the two neighbours in the
trade and energy sectors can make a good new beginning or expansion in
bilateral ties. lere is an opportunity to grab, with China, Central Asian
republics and Russia becoming stakeholders in Pakistan-Iran trade relations, a
stable Aghanistan can later join the trading block as a natural partner. 1he
opportunity should be seized immediately, without waiting or a tripartite gas
pipeline deal - equally important in Pakistan`s energy needs context - to
materialise between Iran, Pakistan and India.
http:,,www.dawn.com,2006,12,21,ed.htm42
PAKI STAN-I RAN: RELATI ONS UNDETERRED BY SANCTI ONS
SAY OFFI CI ALS

Relations between Pakistan and Iran will not be aected by the recently
imposed United Nations sanctions against 1ehran. On the contrary, the
shiting geopolitics o southwest and central Asia and the Middle Last will
cement relations between the two countries or tactical reasons, according to a
Pakistani oreign ministry spokeswoman. "Pakistan will continue its trade with
Iran despite the imposition o sanctions on 1ehran by the UN Security
Council,` she stated.
1he oreign ministry's position relects Pakistani oreign policy moes
to counter growing United States inluence in the region. In this regard,
Pakistan has already deeloped a strategy o renewed strategic and trade
partnership with China, and, signiicantly, has reused to proide urther
acilities to NA1O troops to operating in Aghanistan.
Unnamed sources told AKI a new paradigm or Pakistan-Iran
relations will centre on Aghanistan, as both countries hae been aected by
the spilloer rom the instability there since the US-led toppling o the hard
line 1aliban ollowing the 11 September, 2001 attacks on the United States.
Pakistan's objectie in the strie-wracked country is the genuine
participation in national politics o the population in southern Aghanistan,
which is predominantly Pashtun and Islamist. Iran - on which the UN Security
Council last Saturday imposed sanctions or its reusal to halt sensitie nuclear
work - aims to curtail American inluence in Aghanistan.
A 'strategic understanding' between Pakistan and Iran will be
symbolised by the planned Iran-Pakistan-India pipeline, the sources said. 1he
seen billion dollar project will link Iran's abundant gas reseres ia Pakistan
to India's expanding economy, the sources said. Other trade and economic
deals will hae the same signiicance, the sources added.
Len beore the United Nations Security Council slapped sanctions
on Iran, Pakistani president Perez Musharra clearly stated that Pakistan will
proceed with a pipeline to carry Iranian gas, een i the Iran-Pakistan-India gas
pipeline ails to go ahead i India pulls out.
1he plan to pump 150 million cubic metres o Iranian gas to India per
day through Pakistan was irst proposed more than a decade ago, but progress
has been slow because o hostility between India and Pakistan and, more
recently, US opposition to Iran because o its nuclear work - which the US
suspects conceals a coert atomic weapons programme.
"Bilateral trade agreements will continue between Iran and Pakistan.
Indeed, once projects such as the gas pipeline are launched, they will increase
economic actiity, oreign inestment and thereore guarantee peace in the
IPRI lactile 100
region," predicted the Pakistani Senate's oreign relations committee chairman,
Mushahid lussain Syed.
Iran and Pakistan hae mostly had ery cordial relations since Pakistan
was ormed in 194. 1he 199 anti-US Iranian Reolution howeer distanced
Iran rom Pakistan, which has always allied itsel with the US. Since the
toppling o the 1aliban, the two countries hae drawn close together and
relations hae warmed.

Syed Saleem Shahzad, 28 Dec 2006
http:,,www.adnki.com,index_2Leel_Lnglish.phpcat~Politics&loid~8.0.3180305
0&par~0

PAKI STAN-I RAN I NVESTMENT COMPANY SET UP

Pakistan and Iran hae established a joint inestment company to carry out
business o inestment and inance enterprises.
A MoU was signed here on 1hursday in the inance ministry. Minister
o State or linance Omer Ayub Khan led the Pakistani side which comprised
Secretary o linance Syed 1anir Ali Agha and Istaqbal Mehdi while a three-
member delegation rom Iran`s loreign Inestment Company, headed by its
chairman and MD Dr Mehdireza Darishzadeh, Iranian Ambassador
Mashallah Shakeri and Deputy Chairman Syed Mansoor Mir Abedeni were
present.
1he joint inestment company has been sponsored equally by the
Ministry o linance Pakistan and loreign Inestment Company o Iran, and
has been established in pursuance o an agreement signed between the two
goernments at 1ehran on leb 23 in 2005. 1he registered oice o the
company shall be in Karachi with its branch in 1ehran.
Omer Ayub Khan said it was another step in line with a series o
inestment agreements signed with a number o countries, including Saudi
Arabia, Brunei, and Kuwait.
le said the company had been set up as per agreement reached
during isit o Prime Minister Shaukat Aziz to Iran in lebruary 2005 and it
would hae initial capital o >2500 to be shared by the both countries on equal
basis.
Omer Ayub said the company would help in carrying out inestment
actiities in arious areas o Pakistan and would also boost existing economic
relations between the two countries.
1he company may play an aectie role or the deelopment o
petroleum, inrastructures and power generation sectors.
Besides enhancing business opportunities, the company would
accelerate economic actiities in both the countries, he said, adding setting up
o the inestment company would go a long way or creating a new
enironment o inestment, paing the way or employment opportunities.
Chairman o the joint inestment company Dr Mehdireza
Darishzadeh said that the establishment o Pak-Iran inestment company
would contribute towards promotion o economic actiities in both the
countries.
1he economic relations between the two brotherly countries would
get a boost, he said, adding, it would contribute a lot or enhancing
cooperation between the two countries.
1he company can contribute a lot or deelopment o power,
petroleum and other sectors o mutual interests.

Darv, 5 January 200
http:,,www.dawn.com,200,01,05,ebr2.htm

PAKI STAN, I MPORTANT COUNTRY FOR I RAN: MOTTAKI

Iranian loreign Minister Manouchehr Mottaki said on \ednesday that
Pakistan is a ery important country or Iran.
Mottaki, who is currently in Islamabad to attend the 34th session o
oreign ministers o the Organization o the Islamic Conerence ,OIC,, was
speaking in a meeting with heads and sta o Iranian oundations based in
Pakistan.
"In relations between Iran and Pakistan, mutual interests are
principally obsered," he said.
le added, "Pakistan is among countries with which we are
determined to expand ties in all ields.
"\e call or expansion o ties with all Pakistani bodies in political,
military, security, consular, cultural and social sectors."
Mottaki said during the past 2 years since ictory o the Islamic
Reolution, Pakistan has called or serious attitude on part o the \est to
Iran's human rights and added that Islamabad has always supported Iran in
international circles.
le stated that Pakistan is the only country which has cooperated with
Iran and authorized 1ehran to ight counter-reolutionary agents.
le said 1ehran and Islamabad enjoy great economic potentials and
stressed that the sides should bee up eorts to increase the olume o
economic exchange to one billion dollars.
1he minister stated that Iran has potentials to implement oer 100
billion dollars worth o projects in Pakistan, adding Iran is currently
implementing projects alued at more than seen billion dollars in Arica.

R^., 16 May 200
http:,,www2.irna.ir,en,news,iew,menu-236,0051699151034.htm

FF 88

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

FF 88

Transféré par

Droits d'auteur :

Formats disponibles

Pakistan-Iran Relations i

PAKI STAN-IRAN RELATI ONS

Vous aimerez peut-être aussi