Pakistan and Iran decided to inaugurate the border market

Subject :International relations

Section: Neighbouring countries

Context: The top leaders of Pakistan and Iran on Thursday inaugurated the first border market as relations warm between the two countries

Concept:

Border market, which is located at Mand town in Pakistan’s Balochistan province and adjacent to Pishin city in Iran’s Sistan-Baluchestan province.
Memorandum of Understanding (MOU) to establish Border Markets along the border was signed between Pakistan & Iran in April 2021.
Three Border Markets are now being established at Gabd, Mund & Chedgi in Balochistan, near our border with Iran.”
these facilities would enhance cross-border trade, foster economic growth and open up new avenues of opportunity for local businesses.

Why it has opened now?

Iran-Pakistani relations have been contentious because of cross-border attacks by Pakistani militants along their shared border
Small separatist groups have been behind a long-running insurgency calling for Baluchistan’s independence from the central government in Islamabad. Pakistani anti-Iran militants have also targeted the Iranian border in recent years, increasing the friction between the two countries
Pakistan has close ties with Sunni powerhouse Saudi Arabia, but has tried to maintain a relationship with the predominantly Shiite Iran. Riyad and Tehran, long-time rivals, restored ties earlier this year in a Chinese-brokered agreement.