Iran and Pakistan celebrated a momentous occasion on Thursday with the inauguration of a joint border market and an electricity transmission line, attended by high-ranking government officials from both nations.
The Mand-Pishin Border Sustenance Marketplace, located in the Iranian province of Sistan-Baluchestan and the Pakistani province of Balochistan, was officially opened by Iranian President Ebrahim Raisi and Pakistani Prime Minister Shehbaz Sharif. The market, spanning 10 acres (4 hectares), is one of six planned border markets outlined in a memorandum of understanding signed on April 21, 2021. Its establishment aims to strengthen cross-border trade and create new opportunities for local businesses to thrive.
Simultaneously, Raisi and Sharif inaugurated the Polan-Gabd Electricity Transmission Line, designed to transmit an additional 100MW of electricity from Iran to Pakistan. This transmission line serves as a supplement to the electricity already purchased from Iran for the border Makran region through the existing 132 KV Makran Division electricity transmission line. The extra 100 MW of electricity supplied by Polan-Gabd will help meet the energy demands of households and businesses in Balochistan.
Polan, situated in the port city of Chabahar within Sistan-Baluchestan, and Gabd, located 87 kilometers (54 miles) from Gwadar on the Pakistani side, play vital roles in the China-Pakistan Economic Corridor (CPEC) project.
In recent discussions, the two nations also agreed to revive the long-pending gas pipeline project, expand bilateral trade, and foster collaboration in the aviation sector. The Iran-Pakistan gas pipeline project, spanning 2,275 kilometers (1,414 miles), was initially proposed in the 1990s to transport natural gas from Iran to Pakistan but encountered multiple delays due to US sanctions. Presently, bilateral trade between Iran and Pakistan amounts to less than $400 million.
During their meeting at the joint inauguration, Raisi and Sharif engaged in talks about bilateral matters and expressed their dedication to enhancing economic cooperation. A statement from the Iranian president’s office described the border market as a significant development that would offer livelihood opportunities to thousands of border residents and improve their economic conditions. At the subsequent joint press conference, Raisi emphasized the commitment of both nations to strengthen ties and expand cooperation in the energy sector. He also highlighted the ongoing construction of additional border markets aimed at facilitating cross-border trade and generating employment. Raisi emphasized that Iran views the border with Pakistan as an opportunity rather than a threat.
In response, Prime Minister Sharif described the inauguration of the two projects as the beginning of a new chapter in the growing trade and business relations between the two “brotherly” countries. He expressed Islamabad’s intention to negotiate a free-trade agreement with Tehran to boost bilateral trade and commerce. Sharif extended an invitation to President Raisi to visit Islamabad and disclosed that he had proposed Iran’s inclusion in the $64 billion China-Pakistan Economic Corridor project during their discussions.