Pivot to Geoeconomics and Pak-Iran Relations: Prospects for Trade Cooperation

Key Points:

  • The total trade value between Iran and Pakistan is 392.08 million dollars, with 22.86 million dollars worth of Pakistani exports.
  • Pakistan’s export portfolio viz Iran is relatively limited as only rice makes up 63 per cent of Pakistan’s total exports to its western neighbour.
  • Even with sanctions, Iran in 2021 was the third largest producer of dry natural gas, increasing its natural gas output by 60 per cent between 2011 and 2021, approximately 8.8 trillion cubic feet per year.
  • If the Iran-Pakistan pipeline had been completed and operational on time, Pakistan would have had access to a cheaper natural gas source rather than having to set up the infrastructure and then import LNG.
  • Currently, Pakistan does not undertake many imports from Iran in the energy sector, the main being around 100 megawatts of electricity for Gwadar, which up till 2010 used to be 35 megawatts.
  • Both countries should formalise the long-delayed FTA, while Pakistan should diversify its export basket in order to overcome the trade imbalance.

Dr. Tauseef Javed

Tauseef Javed works at the Center for Strategic and Contemporary Research (CSCR) as a Research Associate. He has completed his Ph.D. from Fujian Normal University in Fuzhou, China. His research focuses on US economic aid policy toward Pakistan, international relations, history, and area studies from an interdisciplinary perspective. He can be reached at tjsatti2018@gmail.com

Syed Zulfiqar Ali

Syed Zulfiqar Ali has completed his Masters in Defence & Strategic Studies from Quaid-i-Azam University, and is currently serving as a Research Associate at the Centre of Strategic and Contemporary Research.

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