Pakistan and Iran have an uneven and bumpy trade and commerce relationship. Coupled with this are the upheavals in the security realms that keep both the neighbouring states, sharing a porous border of around 900 km, at bay. In such a scenario, the opening of the Mand-Pishin border market is a good omen, and could be a game-changer in their ties if market forces are allowed to have a level-playing field. Prime Minister Shehbaz Sharif and Iran’s President Seyed Ebrahim Raisi took a leap forward as they inaugurated one of the six sustenance markets aimed at boosting bilateral trade.
The Pakistan-Iran bilateral trade is restricted much below the $500 million mark, owing to lack of initiatives and infrastructure, as well as a lethargic bureaucracy. This is an impediment in their geo-economics too, as Tehran and Islamabad had done more lip-service than practical work in boosting trade and travel. While Iran is home to Shia pilgrimage in the Holy city of Mashhad, the level of cross-border movement of people through the Dalbadin-Taftan-Zahidan route has come to a naught in recent years. This has much to do with security scars, and both the governments must address this issue on a priority basis.
The news in consolation, nonetheless, is that both the countries have agreed on Thursday to an additional 100MW electricity to Gwadar from Iran’s grid at a special competitive rate. Energy transmission from Iran has been a sought-after issue, and the deal could extend to 5,000MW of electricity to Pakistan’s desolated Balochistan province. Much needs to be done to erect a viable infrastructure for trade and tariffs, and let the least developed flanks of Balochistan on either side come on a par with other regions. This will act as a catalyst in undoing the law and order and sectarian conundrum.
Pakistan and Iran must overcome geopolitical riddles to stay afloat. The fiasco of $7.5 billion Iran-Pakistan-India gas pipeline is a case in point that goes on to stare in our faces as a bad piece of geo-economics dumped under pressures of realpolitik.
Published in The Express Tribune, May 19th2023.
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