Iran, Pakistan agree to boost cooperation on security, trade

Iran, Pakistan have mutually agreed to boost bilateral co-operation on regional security and trade. Decision in this regard was taken by the Iranian President Hassan Rouhani & Pakistani Prime Minister Nawaz Sharif during intensive talks in Islamabad. Iranian President Hassan Rouhani is on official state visit to Pakistan and is the 1st visit by an Iranian head of state in 14 years.

Key facts:

Both countries have agreed to fight extremist and terrorist groups in their countries’ shared border. They also announced the opening of 2 new crossing points to encourage trade long hampered by sanctions. The opening will contribute to economic integration in the region and also promote tourism & people to people contacts. Iran discussed issues related to energy and export of gas or electricity to Pakistan as well as establishing connectivity between Pakistan’s Gawadar & Iran’s Chabahar seaports. Geopolitical scenario Pakistan predominantly being a Sunni Muslim nation had traditionally close economic political ties with the Saudi Arabia (Sunni Muslim nation). However in recent times, it is trying to maintain a delicate balance promoting ties with Iran as the West Asia region is indulged in sectarian rift especially between Iran (Shia Muslim nation) and Saudi Arabia Earlier Pakistan (having the largest and only nuclear armed army in the Muslim world) had refused a Saudi Arabia to join its anti-Houthi military coalition (in Yemen) as it would be against Iran. The move had angered Saudi Arabia as Pakistan had vowed to stand ready to defend any (including sectarian) aggression against Saudi Arabia.

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Iran, Pakistan agree to boost cooperation on security, trade

1st long distance Silk Road train arrives in Tehran from China

The 1st long distance cargo train connecting Iran and China has arrived in the Iranian capital city Tehran after starting its journey from China. The train had started its journey from China’s eastern Zhejiang province and it took Fourteen days to reach their final destination. It had covered around 9,500 KM distance and passed through 2 Central Asian countries Kazakhstan & Turkmenistan. Henceforth such trains will run between both countries once in month and the frequency will be increased if necessary. These trains will be run by the private companies using existing routes.

Significance:

It marks the revival the ancient Silk Road and gives impetus to China’s ambitious One Belt One Road initiative part of revived Silk Road diplomacy. This train’s journey was 30 days shorter compared to time taken by sea voyage from Shanghai to the Iranian port of Bandar Abbas. It also will boost to bilateral trade between both countries after they had agreed to build economic ties worth up to $600 billion within the next Ten years. Currently, China is Iran’s biggest trading partner and accounts for its one 3rd of foreign trade. China is also top customer for oil exports from Iran.

Comment:

Iran is strategically located in the Middle East and shares land borders with 8 nations and sea channels on its northern and south western coasts. China seeks to leverage Iran’s strategic location by making it part of its New Silk Road initiative in order to get access to extensive delivery routes connecting to the Eurasia and Middle East.
Background:

The Silk Road was an ancient network of commercial land and sea routes that was named for the lucrative Chinese silk trade. This trade route was central to business across the Asian continent connecting China with the Mediterranean Sea. The revived Silk Road is envisioned as a rail and sea route as part of China’s ambitious OBOR economic development strategy.

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1st long distance Silk Road train arrives in Tehran from China