Table of Contents
Pakistan-Iran Relations
1 Introduction
Pakistan-Iran relations are shaped by an unusual combination of geographical proximity, historical and cultural affinity, religious connections, economic interests and regional geopolitics.
Pakistan and Iran share a border of approximately 909 kilometres, making Iran Pakistan’s western neighbour and an important link between South Asia, the Middle East and Central Asia. Iran was the first country to recognize Pakistan after its independence in 1947, while Pakistan was among the first countries to recognize the Islamic Republic of Iran after the 1979 Iranian Revolution. (Ministry of Foreign Affairs)
Unlike Pakistan’s relations with India and Afghanistan, Pakistan does not have a major territorial dispute with Iran. Nevertheless, the relationship has experienced periods of tension, particularly over border security, militant activity, smuggling, sanctions, energy cooperation and Iran’s relations with other regional powers.
At the same time, the relationship possesses considerable untapped potential in trade, energy, border development, transportation, connectivity, agriculture, culture and regional cooperation.
The relationship can therefore be understood through five broad dimensions:
Historical friendship + border security + economic interdependence + regional geopolitics + strategic balancing.
2 Historical and Cultural Foundations
The relationship between the territories of present-day Pakistan and Iran predates the creation of both modern states.
Persian civilization and language exercised a profound influence on the cultural and intellectual development of the Indian subcontinent.
Persian served for centuries as an important language of administration, literature, scholarship and diplomacy in South Asia.
The cultural relationship is visible in:
- Literature
- Poetry
- Architecture
- Music
- Language
- Religious scholarship
- Sufi traditions
- Art
- Historical institutions
Consequently, Pakistan-Iran relations possess a historical depth that extends well beyond contemporary diplomacy.
3 Iran’s Early Recognition of Pakistan
Iran was the first country to recognize Pakistan following independence in 1947.
This early recognition established an important foundation for bilateral relations.
Pakistan and Iran subsequently developed close diplomatic, political and security relations, particularly during the early decades of Pakistan’s existence.
The relationship was also influenced by the fact that both states were Muslim-majority countries seeking to establish their positions within the emerging post-colonial international system.
4 Pakistan and Iran in the Cold War
During the Cold War, Pakistan and Iran generally belonged to the Western-aligned regional security architecture.
Both countries joined the Baghdad Pact, later known as CENTO, during the 1950s.
They also participated in the Regional Cooperation for Development (RCD) alongside Turkey.
These arrangements reflected shared concerns about Soviet influence and the strategic importance of cooperation among non-Arab Muslim states.
The Cold War therefore produced a period of relatively close strategic relations between Pakistan and Iran.
5 The 1979 Iranian Revolution
The Iranian Revolution of 1979 transformed Iran’s domestic political system and its foreign policy.
The monarchy of Shah Mohammad Reza Pahlavi was replaced by the Islamic Republic under Ayatollah Ruhollah Khomeini.
Pakistan recognized the new Islamic Republic and maintained diplomatic relations.
However, the ideological transformation of Iran altered the regional strategic environment.
Pakistan subsequently had to balance its relationship with Iran against its relationships with Saudi Arabia, the United States and other regional partners.
6 Pakistan’s Relationship with Iran and Saudi Arabia
Pakistan’s relations with both Iran and Saudi Arabia have historically been important.
Iran represents Pakistan’s immediate western neighbour and shares deep historical and cultural links with Pakistan.
Saudi Arabia has traditionally been an important economic, religious and strategic partner.
The rivalry between Iran and Saudi Arabia has occasionally complicated Pakistan’s regional diplomacy.
Pakistan has generally sought to avoid becoming part of a sectarian or geopolitical confrontation between the two states.
This balancing policy reflects a broader principle of Pakistani foreign policy:
Maintain relations with competing regional powers while avoiding unnecessary entanglement in their rivalries.
7 Geographical Importance
Iran is strategically important to Pakistan because of its geographical position.
Iran connects Pakistan with:
- The Persian Gulf
- Middle Eastern markets
- Turkey
- Central Asia
- The Caucasus
- Europe
Pakistan’s Balochistan province directly borders Iran’s Sistan-Baluchestan province.
This makes the border both a potential economic corridor and a security challenge.
A stable and economically developed Pakistan-Iran border could become an important gateway for regional commerce.
8 The Pakistan-Iran Border
The two countries share a border of approximately 909 kilometres.
The border largely runs between Pakistan’s Balochistan province and Iran’s Sistan-Baluchestan province.
The region is geographically difficult, sparsely populated in many areas and economically less developed than the major population centres of both countries.
This creates challenges involving:
- Border surveillance
- Illegal crossings
- Smuggling
- Militancy
- Human trafficking
- Economic deprivation
At the same time, border communities on both sides have longstanding cultural, tribal and commercial connections.
9 Border Security
Border security has become one of the most important contemporary dimensions of Pakistan-Iran relations.
Both countries have faced militant groups operating in their respective border regions.
Pakistan has concerns about attacks originating from Iranian territory, while Iran has concerns about militant groups operating from Pakistan’s Balochistan region.
This creates a shared security problem.
Both governments have therefore emphasized greater intelligence cooperation, border coordination and communication between security institutions. In 2024, the two sides specifically agreed to strengthen security cooperation and establish liaison arrangements involving Turbat and Zahedan. (Ministry of Foreign Affairs)
10 Balochistan and Cross-Border Militancy
Balochistan is central to Pakistan-Iran relations.
Pakistan’s Balochistan and Iran’s Sistan-Baluchestan share ethnic and cultural connections among sections of the Baloch population.
Militant organizations operating in the border region have complicated bilateral relations.
Both countries have accused militant groups of using territory on the other side of the border.
The issue is sensitive because legitimate ethnic and family connections exist alongside security concerns.
Therefore, border security cannot be separated from the economic and social development of the border region.
11 The January 2024 Crisis
In January 2024, Pakistan and Iran experienced an unusually serious diplomatic and military crisis.
Iran conducted strikes inside Pakistan, stating that it was targeting militant positions.
Pakistan strongly condemned the violation of its sovereignty and subsequently carried out strikes inside Iran against what it described as militant targets.
The escalation was quickly followed by diplomatic engagement.
Both sides restored diplomatic relations and emphasized the importance of sovereignty, territorial integrity and cooperation against terrorism.
The crisis demonstrated both the vulnerability and resilience of the relationship.
It showed that security tensions can escalate rapidly, but also that strong diplomatic and military communication channels can prevent a temporary crisis from becoming a prolonged confrontation.
12 Terrorism as a Common Challenge
Terrorism represents a shared security concern for Pakistan and Iran.
Both countries have suffered casualties from militant violence.
The border region has provided opportunities for militant groups to exploit difficult terrain and limited state presence.
Pakistan and Iran have therefore increasingly recognized that terrorism cannot be addressed effectively through unilateral measures alone.
Joint intelligence, coordinated border management, communication between military commanders and economic development of border communities are essential elements of a long-term solution.
13 Economic Development of the Border Region
Pakistan and Iran increasingly recognize that security and development are interconnected.
Poor economic conditions, unemployment, informal trade and limited infrastructure can make border communities vulnerable to criminal and militant networks.
Both countries have therefore promoted:
- Border markets
- Cross-border trade
- Economic zones
- Electricity connections
- New crossing points
- Transport links
The objective is to transform the border from a security frontier into a border of peace, friendship and prosperity. (Ministry of Foreign Affairs)
14 Border Sustenance Markets
Border sustenance markets are designed to promote legitimate commercial activity in communities located along the Pakistan-Iran border.
The Mand-Pishin Border Sustenance Marketplace is an important example.
Such markets provide opportunities for local traders while encouraging formal economic activity.
They can also help reduce dependence on smuggling by creating legal channels for cross-border commerce.
Pakistan and Iran have agreed to establish additional border markets as part of their broader economic cooperation strategy. (Ministry of Foreign Affairs)
15 Pakistan-Iran Trade
Trade is one of the areas with the greatest potential for bilateral cooperation.
Pakistan’s official data puts bilateral trade at approximately US$2.8 billion in FY2023-24, with Pakistani exports of about US$684 million and imports from Iran of about US$2.1 billion. (Ministry of Foreign Affairs)
Pakistan’s exports to Iran include:
- Rice
- Sesame seeds
- Fruits
- Fabrics
- Surgical instruments
- Meat
- Gelatin
Pakistan imports products including:
- LPG
- Bitumen
- Dates
- Tomatoes
- Onions
- Iron and steel products
- Petrochemical products
- Other agricultural and industrial commodities
The volume remains below the potential created by geographical proximity.
16 Preferential Trade Agreement
Pakistan and Iran signed a Preferential Trade Agreement (PTA) in 2004, which became operational in 2006.
Under the agreement, both countries granted tariff concessions on selected products.
Pakistan offered concessions on 338 tariff lines, while Iran offered concessions on 309 tariff lines.
The PTA represented an important step toward institutionalizing bilateral economic relations. (Commerce Pakistan)
However, trade has remained constrained by sanctions, banking difficulties, customs procedures, transportation problems and security concerns.
17 Free Trade Agreement
Pakistan and Iran have pursued negotiations toward a broader Free Trade Agreement.
A comprehensive FTA could potentially:
- Reduce tariffs
- Increase formal trade
- Expand Pakistani exports
- Encourage investment
- Reduce incentives for smuggling
- Integrate border economies
The two sides have repeatedly expressed their intention to advance negotiations.
In 2023-24 bilateral discussions, both countries reaffirmed the objective of moving toward greater trade liberalization. (Ministry of Foreign Affairs)
18 Informal Trade and Smuggling
The Pakistan-Iran border has historically witnessed substantial informal trade.
Fuel, food products and other commodities are frequently traded through informal channels.
For border communities, such activity can represent an important source of income.
For governments, however, uncontrolled informal trade can lead to:
- Revenue losses
- Customs violations
- Market distortions
- Criminal networks
- Security risks
The long-term objective should therefore be to formalize legitimate border commerce rather than simply suppress economic activity.
19 Energy Cooperation
Energy is perhaps the most important unrealized area of Pakistan-Iran economic cooperation.
Iran possesses substantial reserves of:
- Natural gas
- Oil
- Electricity
- Renewable energy potential
Pakistan, meanwhile, faces persistent energy requirements.
The two countries have therefore explored cooperation in:
- Electricity imports
- Gas
- Oil
- Power transmission
- Energy infrastructure
The existing electricity transmission arrangements provide an example of practical cooperation.
The 220-kV Polan-Gabd transmission line was inaugurated in 2023 as part of efforts to strengthen electricity cooperation. (Ministry of Foreign Affairs)
20 Iran-Pakistan Gas Pipeline
The Iran-Pakistan gas pipeline, commonly known as the IP Pipeline, has long been proposed as a major energy project.
The concept is to transport Iranian natural gas to Pakistan to help meet Pakistan’s energy requirements.
Pakistan’s interest in the project is driven by:
- Energy shortages
- Geographic proximity
- Growing demand
- Potentially competitive energy supplies
However, the project has faced major obstacles, particularly U.S. sanctions on Iran, financing difficulties and geopolitical pressures.
The pipeline demonstrates the tension between Pakistan’s economic interests and the constraints created by international sanctions regimes.
21 Sanctions and Economic Constraints
Pakistan’s economic relationship with Iran is complicated by international sanctions, particularly U.S. sanctions against Iran.
These sanctions affect:
- Banking
- Investment
- Energy projects
- International payments
- Transportation
- Trade financing
Pakistan must therefore balance its desire to expand economic relations with Iran against its wider relationships with the United States and international financial institutions.
This is a classic example of the constraints of great-power politics on smaller and middle powers.
22 Gwadar and Chabahar
The ports of Gwadar in Pakistan and Chabahar in Iran are strategically important because they are located relatively close to each other on the Arabian Sea.
Gwadar is a major component of the China-Pakistan Economic Corridor.
Chabahar is strategically important to Iran and has also been developed with Indian involvement.
The two ports are sometimes presented as competitors.
However, from a broader regional connectivity perspective, they could also potentially become complementary nodes serving different trade routes.
Pakistan and Iran have themselves expressed interest in developing mutually beneficial links between Gwadar and Chabahar. (Ministry of Foreign Affairs)
23 China and Iran-Pakistan Relations
China is an important factor in the Pakistan-Iran relationship.
Pakistan has a strategic partnership with China and hosts major Chinese investment through CPEC.
Iran has also developed closer relations with China, including its participation in China’s broader regional economic strategy.
China therefore has the potential to connect rather than divide the economic interests of Pakistan and Iran.
Greater trilateral cooperation could potentially support:
- Transport corridors
- Energy
- Trade
- Infrastructure
- Investment
- Regional connectivity
24 Pakistan-Iran Relations and Afghanistan
Afghanistan is another area where Pakistani and Iranian interests intersect.
Both countries share borders with Afghanistan and have historically been affected by instability there.
Pakistan has traditionally emphasized Afghanistan’s security implications for its western border.
Iran has its own concerns regarding Afghan refugees, narcotics, border security, water and political developments.
Cooperation between Pakistan and Iran regarding Afghanistan could contribute to regional stability.
At the same time, the two countries may differ in their preferences regarding Afghan political actors and regional influence.
25 Pakistan-Iran Relations and Saudi Arabia
Pakistan’s relationship with Saudi Arabia represents an important balancing factor in its Iran policy.
Pakistan maintains close political, economic and security relations with Saudi Arabia while also seeking constructive relations with Iran.
The challenge is particularly significant because Saudi Arabia and Iran have historically competed for regional influence.
Pakistan’s preferred approach has generally been to avoid choosing sides in intra-Muslim power rivalries.
This policy became particularly evident during debates over Pakistan’s possible military participation in the Saudi-led intervention in Yemen.
26 Yemen and Pakistan’s Strategic Balancing
The Yemen crisis demonstrated the difficulty of Pakistan’s balancing policy.
In 2015, Pakistan’s Parliament adopted a resolution emphasizing neutrality in the Yemen conflict and calling for diplomatic efforts.
Pakistan sought to preserve relations with Saudi Arabia while avoiding direct military involvement in a conflict involving Iran’s regional interests.
The episode demonstrated an important principle of Pakistani foreign policy:
Regional partnerships should not automatically translate into participation in every regional conflict.
27 Religious and Sectarian Dimensions
Pakistan and Iran share a common Islamic identity, but sectarian differences have also occasionally influenced perceptions of bilateral relations.
Iran is the world’s leading Shia-majority state, while Pakistan has a Sunni-majority population with a substantial Shia community.
Sectarian militancy within Pakistan has at times created tensions and security concerns.
However, Pakistan-Iran relations should not be reduced to sectarian considerations.
The relationship also includes substantial historical, cultural, economic, geographical and strategic dimensions.
A mature analysis therefore distinguishes between state-to-state relations and sectarian politics.
28 Religious and Cultural Cooperation
Religious and cultural links remain an important positive component of the relationship.
Large numbers of Pakistani pilgrims travel to Iran to visit religious sites.
Important destinations include:
- Mashhad
- Qom
- Tehran
- Other religious and historical sites
Iran has facilitated the movement of Pakistani pilgrims.
Cultural cooperation also includes:
- Persian language
- Literature
- Academic exchanges
- Religious scholarship
- Tourism
- Historical research
These people-to-people links provide an important foundation for bilateral relations.
29 Regional Organizations
Pakistan and Iran participate in several regional and international organizations.
Important platforms include:
- Economic Cooperation Organization
- Organisation of Islamic Cooperation
- United Nations
- Shanghai Cooperation Organisation
The Economic Cooperation Organization (ECO) is particularly relevant because it provides a framework for trade and connectivity among Pakistan, Iran, Turkey and Central Asian states.
Greater use of such multilateral institutions could reduce dependence on purely bilateral mechanisms.
30 Economic Cooperation Organization
The ECO has particular significance for Pakistan-Iran relations.
Iran and Pakistan are among the organization’s founding members.
The organization seeks to promote:
- Trade
- Transport
- Energy
- Investment
- Regional connectivity
- Economic integration
Pakistan’s geographical position gives it potential to connect the ECO region with the Arabian Sea.
Iran, meanwhile, connects South Asia with the Middle East, Turkey and Central Asia.
31 Iran’s Role in Pakistan’s Western Connectivity
Iran offers Pakistan an alternative route toward West Asia and Europe.
Improved road and rail links through Iran could connect Pakistan with:
Iran → Turkey → Europe
This could diversify Pakistan’s external trade routes.
Pakistan’s participation in regional transport frameworks and the development of the TIR system can potentially improve the movement of goods across the two countries. Pakistan and Iran have emphasized the importance of TIR-based connectivity for regional trade. (Ministry of Foreign Affairs)
32 Pakistan’s Strategic Interests in Iran
Pakistan’s principal interests in Iran include:
Border Security
Preventing militant activity and illegal cross-border movement.
Energy
Access to electricity and potentially other energy supplies.
Trade
Expanding bilateral commercial relations.
Connectivity
Using Iran as a bridge to Turkey, Europe and the Middle East.
Border Development
Improving economic conditions in Balochistan.
Regional Stability
Preventing conflict from spreading across Pakistan’s western border.
Diplomatic Balance
Maintaining constructive relations with Iran while preserving Pakistan’s partnerships with Saudi Arabia, China, the United States and other states.
33 Iran’s Strategic Interests in Pakistan
Iran’s interests in Pakistan include:
- Border security
- Counterterrorism
- Access to Pakistani markets
- Economic cooperation
- Regional connectivity
- Border development
- Relations with the Muslim world
- Access to South Asian markets
- Stability in Balochistan
- Cooperation on Afghanistan
Pakistan’s large population and location make it an important economic and geopolitical partner for Iran.
34 Major Challenges
The principal challenges in Pakistan-Iran relations include:
- Cross-border militancy
- Border insecurity
- Smuggling
- Sanctions on Iran
- Limited banking connectivity
- Low formal trade relative to potential
- Energy project constraints
- Regional rivalries
- Sectarian tensions
- Competing external partnerships
- Economic underdevelopment of border areas
- Geopolitical instability in the Middle East
These challenges are interconnected.
For example, weak economic development can encourage informal trade, while insecurity can restrict formal trade and investment.
35 Future Prospects
The long-term potential of Pakistan-Iran relations is considerable.
Border Prosperity
Joint economic development could transform the border region.
Trade Expansion
The two countries have repeatedly expressed the ambition of increasing bilateral trade toward US$10 billion. In 2025, both governments again publicly emphasized this target, with Pakistan and Iran agreeing to deepen economic cooperation. (Ministry of Foreign Affairs)
Energy Cooperation
Electricity trade and other energy projects can contribute to Pakistan’s energy security.
Connectivity
Road, rail and TIR corridors can connect Pakistan to Iran, Turkey and Europe.
Gwadar-Chabahar Linkages
Rather than treating the ports exclusively as competitors, both countries could explore complementary connectivity.
Border Markets
Legalizing and expanding local commerce can improve livelihoods and reduce smuggling.
Security Cooperation
Joint mechanisms can reduce militant activity and prevent misunderstandings.
Regional Diplomacy
Pakistan can use its relations with Iran to support regional de-escalation and dialogue.
36 Key Takeaways for Exams
- Pakistan and Iran share a border of approximately 909 kilometres.
- Iran was the first country to recognize Pakistan after independence in 1947.
- Pakistan was among the first countries to recognize the Islamic Republic of Iran after the 1979 Revolution.
- Pakistan-Iran relations are rooted in historical, cultural, religious and geographical connections.
- Persian civilization had a profound influence on the culture and intellectual history of the Indian subcontinent.
- Pakistan and Iran cooperated closely during parts of the Cold War.
- Both countries were members of the Baghdad Pact/CENTO.
- Pakistan and Iran, along with Turkey, participated in the Regional Cooperation for Development.
- The 1979 Iranian Revolution transformed Iran’s foreign-policy orientation.
- Pakistan has generally sought to maintain balanced relations with both Iran and Saudi Arabia.
- Balochistan and Iran’s Sistan-Baluchestan region form the core of the bilateral border relationship.
- Border security and cross-border militancy are major contemporary concerns.
- Pakistan and Iran have both suffered from terrorism and militant violence in their border regions.
- The January 2024 exchange of strikes demonstrated the potential for rapid escalation but was followed by diplomatic de-escalation.
- Both countries emphasize sovereignty and territorial integrity as important principles of bilateral cooperation.
- Border sustenance markets are intended to promote legitimate economic activity in border communities.
- Pakistan-Iran bilateral trade was approximately US$2.8 billion in FY2023-24 according to Pakistan’s official data.
- Pakistan’s major exports to Iran include rice, fruits, textiles, meat and surgical instruments.
- Pakistan imports products from Iran including LPG, agricultural products, petrochemical products and industrial materials.
- Pakistan and Iran signed a Preferential Trade Agreement in 2004, which became operational in 2006.
- Both countries have sought to expand trade through a broader Free Trade Agreement.
- Informal trade and smuggling remain significant challenges along the border.
- Energy is one of the most important areas of unrealized Pakistan-Iran economic cooperation.
- The 220-kV Polan-Gabd electricity transmission project represents practical energy cooperation.
- The Iran-Pakistan gas pipeline has faced obstacles primarily related to sanctions, financing and geopolitical constraints.
- Gwadar and Chabahar are strategically important ports located on the Arabian Sea.
- Gwadar is closely associated with CPEC, while Chabahar has been developed as an important Iranian regional connectivity hub.
- Pakistan and Iran have expressed interest in developing mutually beneficial links between Gwadar and Chabahar.
- China is an important factor in the evolving economic and geopolitical relationship between Pakistan and Iran.
- Pakistan and Iran share interests in promoting stability in Afghanistan, although their strategic perspectives are not always identical.
- Pakistan has generally sought to avoid becoming directly involved in the Saudi-Iran rivalry.
- The Yemen crisis demonstrated Pakistan’s policy of strategic balancing between Saudi Arabia and Iran.
- Religious and cultural exchanges, including Pakistani pilgrimages to Iranian religious sites, remain important people-to-people links.
- Pakistan and Iran cooperate through organizations including the ECO, OIC, SCO and United Nations.
- The greatest opportunity lies in converting the Pakistan-Iran border from a security frontier into a corridor of trade, energy and regional connectivity.
- The long-term success of Pakistan-Iran relations depends on border security, economic integration, energy cooperation, strategic balance and sustained diplomacy.
Conclusion
Pakistan-Iran relations occupy a distinctive position in Pakistan’s foreign policy.
The two countries have no major territorial dispute, share deep historical and cultural connections, and have maintained diplomatic relations since Pakistan’s independence. Yet the relationship has never been entirely free from strategic complications.
Border security and militancy remain the most immediate challenges. Economic relations remain below their considerable potential because of sanctions, banking restrictions, informal trade and inadequate infrastructure. Energy cooperation presents enormous opportunities but is constrained by geopolitical realities.
At the regional level, Pakistan must simultaneously manage relations with Iran, Saudi Arabia, China, the United States, Afghanistan and other major actors. This makes strategic balancing a central feature of Pakistan’s Iran policy.
The greatest opportunity lies in geography.
Iran can provide Pakistan with access toward the Middle East, Turkey and Europe, while Pakistan can provide Iran with access to the large South Asian market. Improved connectivity between Gwadar and Chabahar, greater border trade, electricity cooperation and expanded transportation links could turn geographical proximity into economic advantage.
The relationship can therefore be summarized through a simple strategic proposition:
Pakistan and Iran share a border that can either remain a security frontier or evolve into a corridor of peace, trade, energy and regional connectivity.
For Pakistan, a stable and economically prosperous relationship with Iran serves the broader national objectives of western border security, Balochistan’s development, energy security, economic diversification and regional connectivity. For Iran, constructive relations with Pakistan provide access to South Asia and strengthen its links with the wider Muslim and Asian world.
The future of Pakistan-Iran relations will ultimately depend on the ability of both countries to convert their considerable historical goodwill and geographical interdependence into institutionalized economic and security cooperation.