This is apropos 'Iran cuts historic economic deal with China' carried by Business Recorder on Sunday. According to it, Iranian President Hassan Rouhani has hailed a "new chapter" in relations with China after talks with President Xi Jinping. China and Iran aim to build economic ties worth up to $600 billion within the next 10 years. They oversaw the signing of 17 agreements in areas including politics, the economy, security and cooperation on peaceful nuclear energy.
That Islamic republic has cut an historic economic deal with the former 'Middle Kingdom' is a highly important political development particularly in times when the entire Middle East is in throes of deep political and security turmoils.
The China-Iran deal will help Tehran to exploit its massive potential of oil and gas. The Western sanctions in particular have translated into a woeful lack of investment in oil and gas sector, which is Tehran's principal source of revenue, since the removal of despotic Shah of Iran. It has been highly encouraging to note that those crippling sanctions have been lifted, ending country's isolation. The oil ascendency that once Tehran enjoys during pre-revolution period had been squandered away owing to a variety of factors. Not only will China, an energy-starved economy, secure, to an extent, its energy needs, its long-term engagement with Iran will also eliminate any real or perceived hostility that Chinese operations at Gwadar port may encounter from Iran. It could also a good deal from Pakistan's perspective.
Comments
Comments are closed.