Islamabad, June 26, IRNA -- The government of Pakistan, which launched a plan to set up three joint border markets with the Islamic Republic of Iran in early June this year has allocated technical supplementary grants to implement the project.

Pakistani state media reported that the Economic Coordination Committee of the Cabinet with Finance Minister Shaukat Tarin in the chair approved a supplementary grant of 300 million rupees about the US$20 million for the establishment of joint border markets at Mand in district Kech, Gabd in district Gwadar and in district Panjgur of Balochistan.

On June 2, Adviser to Prime Minister of Pakistan for Commerce and Investment Abdul Razak Dawood said three border markets are now being established at the border with Iran.

In a series of tweets, he said that the Ministry of Commerce is establishing the border markets under the MoU signed between Pakistan and Iran in April 2021.

"MOC is pleased to inform that the MoU to establish Border Markets along the border was signed between Pakistan and Iran in April 2021," he said.

Earlier, the Pakistani Prime Minister had said that all government efforts are focused on developing legal trade on the joint borders of Iran and Pakistan, noting that joint border markets will be functional in the next few months.

Pakistan mulling to allocate budget for setting up border market with Iran

During the Pakistani Foreign Minister's visit to Tehran in April, the Iranian and Pakistani foreign ministers signed a memorandum of understanding to establish joint border markets with the aim of strengthening cross-border economic exchanges.

The second and third official crossings of Iran and Pakistan were also officially opened in Rimdan (Gabd) and Pishin (Mand) in December last year and April this year, respectively with the presence of Iran's Minister of Roads and Urban Development Mohammad Eslami, and Pakistan's Minister of Defense production Zobaida Jalal, as well as other officials.

Pakistani daily Business Recorder in a report said the allocation of money for the markets is a historic step insofar as the country’s strategic interests and priorities are concerned.

"Not only will the setting up of joint borders with two Muslim neighboring countries help promote bilateral trade, but this will also certainly help discourage smuggling from and into Pakistan. The allocation of Rs 300 million must translate into setting up of three joint border markets as soon as possible," it said.

Iran and Pakistan have taken coordinated steps in recent months to strengthen infrastructure in the joint border strip.

Both countries have opened two new border crossings to facilitate trade, border relations, economic activities by setting up three border markets.

Sistan and Baluchestan, as a neighboring province of Iran with Pakistan, currently has seven active border markets, five of which are on the border with Pakistan and two on the border with these seven border markets play an important role in trade with neighboring countries.