Pakistan could begin importing natural gas and crude oil from Iran as expanding economic relations between the two neighbouring countries create new opportunities for cooperation, Defence Minister Khawaja Asif said on Wednesday, reviving discussion around the long-delayed Iran-Pakistan gas pipeline project.
The minister’s remarks came as Iranian President Masoud Pezeshkian arrived in Pakistan on a one-day state visit at the invitation of Prime Minister Shehbaz Sharif, underscoring growing engagement between Islamabad and Tehran.
Addressing reporters outside Parliament House, Asif said both countries had held discussions on strengthening economic and commercial cooperation. He noted that prospects existed for importing Iranian gas through a pipeline and bringing Iranian oil into Pakistan as bilateral ties continued to expand.
He added that overland trade routes would lower transportation costs, making goods more affordable and beneficial for consumers on both sides of the border. Asif said Pakistan and Iran were examining ways to increase bilateral trade, with both nations expected to broaden imports and exports across multiple sectors. He maintained that deeper economic cooperation would generate mutual benefits and strengthen regional economic integration.
The minister expressed optimism that enhanced trade and commercial activity with Iran would promote peace and economic development in Balochistan. According to him, greater cross-border commerce would create employment opportunities and directly benefit communities living in the province. He described Pakistan-Iran trade as advantageous for both countries, arguing that stronger economic linkages could help address several longstanding regional challenges.
The renewed focus on energy cooperation has also brought the Iran-Pakistan gas pipeline project back into the spotlight. Observers believe that improving regional diplomacy and any future easing of international sanctions on Iran could pave the way for progress on the stalled initiative.
Signed in 2009, the agreement envisages the supply of up to one billion cubic feet of natural gas per day from Iran to Pakistan over a period of 25 years. While Iran completed construction of its section of the pipeline years ago, Pakistan has yet to finish its portion due to sanctions-related constraints and financing hurdles.
Energy analysts say that any relaxation of restrictions on Iran could provide fresh impetus to the project, which is widely regarded as a potential contributor to Pakistan’s long-term energy security.
The visit by President Pezeshkian comes amid a notable improvement in Pakistan-Iran relations. Islamabad’s diplomatic efforts to facilitate dialogue between Washington and Tehran have received international attention, and officials expect the latest high-level exchanges to further enhance cooperation in trade, energy and regional connectivity.
Commenting on domestic affairs, Asif also defended civil-military cooperation, describing it as a successful “hybrid system.” He argued that periods of discord between the civilian leadership in Islamabad and the military establishment in Rawalpindi had historically undermined Pakistan’s economic, political and constitutional development.
According to the minister, the outcomes of the existing arrangement were evident in Pakistan’s growing international standing and improved reputation.