IRAN was the first Muslim-majority country to recognize the newly established state

of Pakistan in 1947. Diplomatic relations with Pakistan were established by Iran in

the very next year: 1948. Pakistan’s first Prime Minister Liaquat Ali Khan visited Iran
in May 1949, whereas, the Shah of Iran, became the first head of state to visit
Pakistan in 1950. The two countries became part of defence pacts led by the US in
the 50s. Effort will also be made to put the historical and religious linkages between
the two nations under the spotlight. At the commencement of the cold war, both
Iran and Pakistan joined the US-led capitalist bloc against the Soviet-led Communist
or Socialist bloc. Both Pakistan and Iran joined the US-led Baghdad Pact (1955)
which also included Iraq, Turkey and Brittan.

Iraq withdrew from the pact, after the revolution there in 1950; the Baghdad Pact
was renamed as the ‘Central Treaty Organization (CENTO). In 1964, the three most
prominent nations of West Asia; Pakistan; Iran and Turkey founded a regional
organization called ‘Regional Cooperation for Development ‘(RCD). In 1985, after the
dissolution of RCD, the three nations founded another organization named the
Economic Cooperation Organization (ECO).Some tension between Pakistan and Iran
on sectarian issues has simmered from time to time. Iran has been accused of
helping Shia militant sectarian groups which has at times led to sectarian tension in
Pakistan. Some scholars believe that Sunni militant organizations were largely
created in response to the aggressive assertion of Shia militant groups, formed
mainly after the Iranian Revolution of 1979.

During the Iran-Saudi acrimony, Pakistan maintained a neutral position between

the two nations. Pakistan even offered to play the role of mediator between Saudi
Arabia and Iran. But the offer proved to be a non-starter. In the 2018 – 2022, Imran
Khan’s government offered the same mediating role between Iran and Saudi Arabia
but without any success. The US influence on Pakistan also played a role in Pak-Iran
relations. During the cold war, US may not have wanted Pakistan to have close
relations with Iran. But Pakistan had leverage over US, because of Pakistan’s leading
the pro-American Afghan Jihad. Due to the leverage, Pakistan opened a door for
trade and military cooperation with Iran. In post-cold war period, this liberty was
not available to Pakistan. Iran, because of its desire to go nuclear, was hit by heavy
American economic sanctions. Similarly, after the derailment of democracy in
Pakistan in 1999, Pak-Iran relations assumed a low level and became more tactical.

During the Musharraf regime, we saw low level bilateral engagement which
followed in the period succeeding the Musharraf era. The Iran-Pakistan relations
during the time were transitional and tactical. Although there were visits of Foreign
Ministers and even heads of government between the two countries. It seems that
structural constraints were the main roadblocks in improving relations between the
two countries during the period. Instead of civilian interaction between the two
countries, it was mainly the security and intelligence agencies of the two countries
that interacted with each other. The security-centric considerations dominated the
relationship between the two countries. Happenings around the Pak-Iran border in
recent years corroborate the security centric approach.

Nationalistic narrative coiled around counter-terrorism has overshadowed

economic initiatives between the two states, including the much-hyped Iran –
Pakistan India gas pipeline (IPI). India later withdrew from the project which is now
labelled as Iran-Pakistan gas pipeline (IP). Iran has complained to Pakistan for not
constructing their part of the pipeline infrastructure. Iran has even demanded
financial compensation from Pakistan for this lapse. I personally think that the area
in which Pak-Iran relationship has lagged, has been mutual trade. Whatever trade
takes place between the two countries, has been largely based on Pakistan
importing goods and raw material from Iran. Quetta is also flooded with smuggled
fuel and goods from Iran. Iran-Saudi Arabia rapprochement, facilitated by China,
and the improvement of relations of Iran with Gulf countries has made doing
business by Pakistan with Iran much easier. It was in these conditions that Prime
Minister Shehbaz Sharif and Iranian President Ebrahim Raisi inaugurated a border
market and an electricity transmission line at a border crossing between the two
states on May 18. The two sides intend to build six border markets to promote
bilateral trade as well as cooperation in transfer of energy to Pakistan.

As stated earlier the volume of formal trade between Iran and Pakistan has been
rather low. In 2019 the size of official bilateral trade was $440 million of which $424
million were imports from Iran and $16 million were exports to Iran so thus there is
a huge trade deficit against Pakistan that needs to be corrected. As far as energy is
concerned, Pakistan imports 34.8MW of electricity from Iran. In June 2022 both
sides agreed that Iran would supply an additional 100MW soon. It has also been
agreed to improve road and rail connectivity. The success story here has been the
Islamabad-Tehran-Istanbul (ITI) Cargo Train. This service has been revived after a
gap of ten years in 2022. Every year around a million Pakistanis visit Iran for
religious purposes. Several memoranda of understanding were signed between the
two governments in early part of 2023 to encourage bilateral trade, energy, cultural,
religious exchanges. On future of Iran Pakistan relations, scholars say Pakistan will
need to proceed further. Circumstances like Iran-Saudi détente change in Pakistan’s
policy in Afghanistan and cooling of Iran’s ties with India, all speak of better scope
for improved relations between Pakistan and Iran. Pakistan would still require
international collaboration and improved economic capabilities to meaningfully
engage in a mutually profitable relationship with Iran.