Mand-Pishin crossing point

Context- Pakistan and Iran opened the first border market at the Mand-Pishin border crossing in an effort to increase cross-border trade.

Key Highlights 

• Additionally, the two leaders unveiled an electricity transmission line that will bring Iranian-generated electricity to some of Pakistan’s most remote areas.
• The two nations made the initial move toward opening border markets when they signed a Memorandum of Understanding (MoU) in 2021 to establish six such facilities.
• One of the six border markets that will be built along the Pakistan-Iran border is the Mand-Pishin Border Sustenance Marketplace. It is located on the border between Iran and Pakistan.
• It would increase cross-border trade, encourage economic expansion, and provide new opportunities for local businesses.
• Mand has been a hub for small-scale border business owners from all over Balochistan for a long time, particularly those associated with the food and beverage industries in Kech and Gwadar districts.
• Food and beverage items are imported, stored, and distributed throughout Balochistan and other Pakistani provinces through the town’s numerous large storage facilities.

Why have Pakistan and Iran decided to begin trading across their borders now?

• The joint inauguration is evidence of Pakistan and Iran’s strong commitment to improving the well-being of residents of their respective neighboring provinces of Balochistan and Sistan-o-Baluchestan.
• Additionally, it represents a significant advancement in the bilateral relationship between the two nations.
• The introduction of the two ventures has come when the political scene of the West Asia district is changing, particularly after the China-facilitated re-foundation of strategic relations between Saudi Arabia and Iran this year.
• With ties between Saudi Arabia and Iran turning out to be less tense, the furthest down the line advancement should be visible as an endeavor by Pakistan to additionally harden their bond to handle their continuous monetary emergencies and further develop line security.

An Overview of Relations Between Pakistan and Iran 

• Stability in Relationships: Iran is Shia-greater part country while Pakistan is a Sunni-ruled country and both the nations never had a consistent relationship and the relations further decayed post Islamic Upheaval in Iran in 1979.
• Insurgency and attacks across borders: Due to cross-border attacks by Pakistani militants along their shared border, the relationship between the two countries has deteriorated even further in recent years.
  • Little dissenter bunches have been behind a long-running revolt requiring Baluchistan’s freedom from the Pakistani government.
  • In recent years, Pakistani militants opposed to Iran have also targeted the Iranian border, escalating tensions between the two nations.
• Improvement in relations: The two nations have never completely severed their ties despite these differences. Furthermore, presently, they appear to be working on their relationship to manage normal issues like their particular financial emergencies — Iran’s funds are decreasing because of rigid assent forced by the US and Pakistan has neglected to manage expansion.
  • One more justification for their recently discovered closeness could be the standardization of ties between Saudi Arabia and Iran.
• Relations with China: Another factor could be China’s entry as a diplomatic player in West Asia. As a result of their close ties to China, Iran and Pakistan are obligated to maintain good relations with one another.

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