On Wednesday, Iranian President Masoud Pezeshkian arrived in Baghdad, where he was warmly received by Iraqi Prime Minister Mohammed Shia' al-Sudani. This marks President Pezeshkian’s first official visit to Iraq since taking office, underscoring the political, economic, and security ties between the two nations.

The Iranian President's visit will span three days, with plans to tour several Iraqi Shiite provinces and holy shrines before arriving in the Kurdistan Region on Thursday. Pezeshkian is expected to sign several important security agreements with Iraqi officials, in line with his stated priority of strengthening relations with neighboring countries.

“We will visit Shiite provinces and shrines as well as Kurdish cities during our visit to Iraq,” Pezeshkian told the press prior to his departure for Baghdad, highlighting the significance of this trip.

Focus on Economic and Security Cooperation

President Pezeshkian's visit comes at a crucial time, as both nations seek to bolster economic ties and resolve key issues. Among the most pressing concerns is Iraq's outstanding debt to Iran for natural gas imports, which is critical for electricity generation. Iran is owed approximately $11 billion, but due to U.S. sanctions, the funds remain inaccessible to Tehran, despite partial payments made by Iraq to Iranian bank accounts.

Economic cooperation will also be a major theme of Pezeshkian's visit. In the past five months, Iran has exported goods worth $4.5 billion to Iraq, a 21% increase compared to the same period last year. The trade volume between the two countries is expected to exceed $10 billion this year, with Iran aiming to elevate this figure to $20 billion in the near future.

Key Infrastructure Projects

A significant part of the visit will involve discussions about the Shalamcheh-Basra railway project, a vital rail link between Iraq and Iran. The project, which was launched last year, aims to facilitate the transportation of pilgrims to Shiite shrines and boost trade between the two nations. President Pezeshkian is expected to visit the railway site as part of his itinerary.

President Pezeshkian’s visit is seen as a critical opportunity to enhance both political and economic relations between Iran and Iraq, further solidifying the partnership between the two neighboring countries.