Pakistan and Iran today inked a number of key agreements as Prime Minister Nawaz Sharif visited the neighbouring country to "open a new page" in bilateral relations.
Accompanied by a high-ranking delegation on a two-day visit, Sharif aims to improve frayed relations and balance its ties with Iran and Saudi Arabia.
The key agreements signed by the two countries included Agreement on Transfer of Offenders and MoU on establishment of Joint Border Commission besides others.
During the talks between Sharif and Iranian President Hassan Rouhani, both sides agreed to give impetus to the stalled multi-billion dollar Pak-Iran gas pipeline.
They agreed to continue with the project as it is beneficial for the people of the both countries.
"I am here with my team of Finance, Petroleum and Interior to resolve all the matters which are creating hindrance in the project," Sharif was quoted as saying in a statement here.
Sharif said that there is lot of scope of increasing the trade volume and Pakistan wants to enhance the trade to new levels of USD 5 billion. He will also call on Iran's supreme leader Ayatollah Ali Khamenei.
This is Sharif's first visit to Tehran after coming to power last year and is taking place in the aftermath of a number of developments in the region from the border tensions to Pakistan's reported policy shift towards Syria.
Relations between Pakistan and Iran have long been marred by mistrust, but the gulf widened since PML-N came to power last year.
Analysts here say Pakistan is interested in bilateral cooperation in power and energy sector.
The visit will also provide an opportunity for the leaders of the two countries to meet and mend frayed ties following the recent controversy over the kidnapping of the Iranian border guards.
Pakistan is walking a tightrope between Sunni-majority Saudi Arabia, a close ally, and Shia-dominated Iran, an important neighbour.
The bone of contention is the ongoing civil war in Syria.
While Iran is supporting the Syrian regime of Bashar al Assad, the Saudis are backing Sunni militant groups trying to dethrone him.
Ever since Saudi Arabia's Crown Prince Salman Bin Abdulaziz Al-Saud visited Pakistan in February, there is intense speculation here that Pakistan has tilted in the Saudis' favour.
Speculation about a shift from Pakistan's traditional policy of non-interference in the affairs of Muslim countries emanated from a joint declaration that had called for the "formation of a transitional governing body" in Syria.
It was also fueled by media reports saying Saudi Arabia was in talks with Pakistan to provide anti-aircraft and anti-tank rockets to the Syrian rebels.
Sharif had said at an envoys' conference last week that "efforts to develop bilateral ties with one country are not, and will not be, at the expense of another".
He was implied to be referring to the delicate balance that Pakistan has to strike in ties with Saudi Arabia and Iran.
