Forum Pakistan

On the whole friendly, the two countries have extensive ties in political, economic, and military areas. From 1955-80, Pakistan, together with Iran and Turkey, was a member of CENTO; since 1964, of the Regional Cooperation for Development; and since 1985, of the Economic Cooperation Organization. Topping this, Iran gave Pakistan strong support in the 1965 war.
In the 1970s, the relations between Iran and Pakistan strengthened. Pakistan counted on the support of its neighbour and CENTO partner in the solution of some important foreign and domestic problems. Iran was one of the first countries visited by Z.A. *Bhutto in his capacity as head of state in January 1972. Cooperation between Iran and Pakistan in the military-political area grew significantly. In the 1970s, their economic ties noticeably increased as in 1974-76, Iran agreed to grant Pakistan two loans, one for $580 million and another for $150 million, and several loans for the construction of industrial and other projects, primarily in *Balochistan.

After the fall of the Shah's regime in Iran in 1979, Islamabad was the first country to recognize the new Iranian provisional government. Pakistan was strictly neutral in the Iran-Iraq military conflict. In the mid1980s, after a brief period of cool relations, the ties were noticeably strengthened. The late 1980s saw an expansion of Pakistan-Iranian links in the military field; Pakistan helped Iran to train its military personnel, supplied spare parts for the Iranian army's military equipment and machines, etc. Highly placed statesmen of the two countries maintained active contact.

Iran did not supply oil to Pakistan in the late 1970s, but in the 1980s and early 1990s it became a major exporter of liquid fuel to this country. Iran also became a major consumer of Pakistan's exports, such as foodstuffs and textiles. The Pakistan-Iranian agreement signed in November 1987 envisaged expansion of bilateral trade to $400 million a year.
Relations came under a strain after sectarian strife increased in Pakistan. The Multan branch of the Iranian Cultural Centre came under attack, and its director, M.A. Rahimi was killed on 20 February 1997. Iranian engineers constructing the Clifton Bridge in Karachi were shot dead in February 1998, delaying the completion of the project. More serious than sectarian trouble was Pakistan's recognition of the Taliban regime in Afghanistan. The Taliban attack on Herat and Mazar-i-Sharif, where large number of Shiites (see Shia) reside, had led to the beginning of alienation. However, the struggle between the Reformists under President Khatami and Conservatives under Ayatollah Khamenei had provided a respite. Even after Pakistan's withdrawal of support to the Taliban in September 2001, differences remained. Pakistan favoured cooperation with the US but not with the Northern Alliance, Iran's stance was completely the opposite. Afghanistan remained a source of discord. The Irani government asked Pakistan on 3 September 2002 to prevent Al-Qaeda elements, the militant body led by Osama bin Laden, the Saudi exile, from crossing over to Iran from Pakistan.

On 22 December 2002 President Muhammad al Khatarni of Iran arrived on a three day visit. Presidents Khatami and *Musharraf called for de-escalation of focus on the Indo-Pakistan border. On 21 October 2003 Prime Minister Mir Zafarullah Jamali visited Iran and called for greater interaction between the two neighbors. Pakistan proposed agreements on issues of double taxation, cultural exchanges, customs, science and technology, livestock and defense. President Khatami assured Prime Minister Jamali that the growing Indo Irani relations could not affect Pakistan-Iran relations. On 2 January 2004 the two countries signed a memorandum of understanding (MoU) for the development of Compressed Natural Gas (CNG). In the latest development on 13 January 2004 both countries undertook to increase trade relations and general economic interaction.