Pakistan, Iran agree to ‘establish’ special economic zone

ISLAMABAD: Pakistan and Iran have decided to establish a joint special economic zone with an aim to boost economic relations between the two countries, ARY News reported on Saturday, citing sources.  

Sources told ARY News that the federal cabinet greenlighted signing of Memorandum of Understanding (MoU) with Iran during President Ebrahim Raisi’s visit to Pakistan, slated for April 22 (Monday).

Sources claimed that the two countries have finalised the draft of memorandum of understanding (MoU), adding that the special economic zone will be established on Ramdan-Gabad border.

The Joint Special Economic Zone will be established at the government-to-government level, sources added.

Earlier, Foreign Minister Ishaq Dar confirmed that Iran President Ebrahim Raisi is scheduled to visit Pakistan on April 22 for a three-day trip.

Taking to media, Dar said that Iranian president visit has nothing to do with the escalating tensions between Tehran and Israel. “Raisi’s visit to Pakistan was planned before the tensions between Tehran and Tel-Aviv,” the foreign minister explained.

As per sources, during his visit, President Raisi will hold meetings with President Asif Ali Zardari, Prime Minister Shehbaz Sharif, and Chief of Army Staff General Asim Munir.

Discussions are expected to cover topics such as border security, the Iran-Pakistan gas pipeline, trade, economic cooperation, and mutual areas of interest.

In January, relations between the two countries had turned sour after Pakistan, in retaliation to Tehran’s cross-border strikes, carried out precision strikes to target terrorists inside Iranian territory.

Pakistan had even withdrawn its ambassador from Iran and announced that it would not allow the Iranian envoy visiting his home country.

The diplomatic ties, however, were soon restored with the ambassadors of the two countries returning to their respective posts.