The agreements were signed during a ceremony in Islamabad on Tuesday attended by Iran’s Economic Affairs and Finance Minister Ali Tayyebnia and Pakistani Prime Minister Nawaz Sharif.
The MoUs are related to the establishment of Joint Investment Committee, cooperation between Pakistan’s Small and Medium Enterprises Development Authority and Iran’s Small Industries, and establishment of sister port relationship between the ports of Karachi and Chabahar as well as cooperation in the field of investment, economic and technical assistance, the Express Tribune reported.
After the ceremony, Nawaz Sharif told the media that relations between Pakistan and Iran are improving, including bilateral cooperation in economy, culture, science and technology.
He emphasized that there are numerous opportunities to increase the volume of trade between the two neighboring countries.
The Iranian Minister was Islamabad on Monday to attend the 19th session of Iran-Pakistan joint economic commission (JEC).
During the meeting both sides agreed upon increasing mutual investment and bilateral trade between the two countries.
In a meeting with the Iranian economy minister on the sidelines of the JEC meeting, Pakistani Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi admitted Pakistan’s failure to complete Iran-Pakistan Gas Pipeline Project on time.
The Pakistani official reaffirmed the country’s commitment to the visiting Iranian minister to complete the project in two phases.
“Pakistan has been unable to complete the projects on its side due to international sanctions on Iran,” Abbasi said.
He told Tayyebnia that despite Pakistan’s best efforts, banks, international contractors and equipment suppliers were not ready to be involved in this project, the Pakistani daily Dawn reported.
“We are now planning to complete this project in two steps. First, we are installing LNG terminal at Gawadar Port and secondly, a 42-inch pipeline of 700km length will be laid from Gawadar to Nawabshah for onward transmission of gas to the northern parts of the country,” Abbasi said.
He said that Pakistan is in talks with Chinese companies for construction of this pipeline and the 70km portion of the pipeline from Gawadar to Iran border will be completed by Pakistani companies.
Iran and Pakistan signed an agreement for the construction of a gas pipeline in 1995.
The Iran-Pakistan pipeline is designed to help Pakistan overcome its growing energy needs at a time when the country of over 180 million people is grappling with serious energy shortages.
The final construction phase of the IP pipeline was inaugurated on March 11, 2013. Iran has already built 900 kilometers of the pipeline on its soil.
Pakistan, however, has fallen short of constructing the 700-kilometer part of the pipeline on its territory.