ISLAMABAD, Aug 1: A high-level military delegation from Iran will be here next week to explore areas of defence cooperation with Pakistan.

Informed defence and diplomatic sources told Dawn on Thursday that the delegation headed by Iran’s deputy defence minister would arrive here on Monday. The Iranian officials will discuss with their Pakistani counterparts defence capabilities of both the countries to see how they could benefit from their respective expertise in the area.

The visit of the Iranian defence delegation to Pakistan is seen by observers as a distinct sign of a thaw in relations between the two countries that had been strained for several years.

Currently the defence cooperation between the two countries is at a very small level, confined largely to training, naval exercises and some ammunition trade, a senior official told Dawn.

Sources said that Iran had shown keen interest in Pakistan’s Mashak training aircraft and AL-Khalid tanks. They said that another potential export from Pakistan to Iran could be gun-boats, hinting at a possibility of the two countries entering into a joint venture for defence equipment.

Pakistani officials said given that Iran was fairly advanced in the aviation field, Pakistan was interested in the Iranian passenger aircraft that have been operational since early this year.

There has been easing of tensions between Pakistan and Iran following Sept 11 and the subsequent fall of the Taliban regime. The first visible signs of improvement in relations between the two brotherly countries were witnessed in November 1999 when President Gen Pervez Musharraf visited Tehran. After taking over as the country’s Chief Executive, President Musharraf’s first official visit abroad was to Iran.

A major breakthrough in the relations was achieved only recently when Iran’s top National Security Advisor Hassan Ruhani visited Pakistan. Ruhani led a 30-member delegation to Pakistan on June 28.

Sources privy to meetings between Ruhani and his counterparts here said officials were very encouraged and satisfied with Ruhani’s response to key issues raised by Pakistan.

These included opening up of Pakistan cultural centres in Iran and establishing of a consulate at Bandar Abbas, the main seaport for Iran’s oil exports. The only two countries that have a consulate there are UAE and India. Ruhani agreed in principle to both these requests.

Currently Iran has seven cultural centres and four consulates in Pakistan whereas Pakistan has no cultural centre in Iran and has only two consulates there.

Islamabad also raised its concern about Tehran allowing India to set up a consulate in Mashhad despite scant Indian population there. Pakistan was given the assurance by Iran that it would keep a check on the Indian activities keeping in view Pakistan’s strategic sensitivities in the area.

Meanwhile, Pakistan officials are quite hopeful of cooperation between Pakistan and Iran expanding and moving in a mutually beneficial direction.

Under a recent agreement between the two countries, Iran will be soon setting up a bus manufacturing plant in Karachi that would produce a thousand buses. In another significant development Pakistan has reportedly secured a deal with Iran on import of electricity for parts of Balochistan, at extremely cheaper rates than local electricity. The deal is also likely to include import of diesel from Iran. Pakistan on the other hand may export refined gasoline to Iran, well-placed sources told Dawn.

The total trade volume between Pakistan and Iran is to the tune of $370 million that heavily tilts in favour of Iran. Of the total figure Pakistan exports to Iran account for only $25 million. Pakistan’s biggest import from Iran is crude oil.

In the context of Pakistan-Iran relations the primary concern of Iranians is the presence of the US forces in Pakistan while the latter’s is the North-South Corridor that Iran wants to establish with India and Russia. Both countries are trying hard to allay fears and suspicions that arise from these concerns to further strengthen their ties.