Since 2000, relations between Iran and Pakistan have returned to normal and economic cooperation has strengthened. The September 11 attacks on the United States changed the foreign policy priorities of Iran and Pakistan.  The hard-line attitude of the George W. Bush administration forced Pakistani President Pervez Musharraf to support Washington`s war against terrorism against the Taliban in Afghanistan, which would end the Islamic Emirate of Afghanistan in the U.S.-led invasion. Although Iranian officials welcomed the Taliban`s move and removal, they were quickly surrounded by U.S. forces in Pakistan, Afghanistan, Central Asia and the Persian Gulf.  In 2005, IAEA evidence showed that Pakistan`s cooperation with Iran`s nuclear program was limited to “non-military spheres” and that it was peaceful in nature.  Tehran had offered up to $5 billion in 1990 for nuclear weapons offers, but was strongly rejected. Centrifuge technology was transferred in 1989; Since then, there have been no other atoms for peace agreements.  Discussions between the Iranian and Pakistani governments on pipelines and energy security began in 1994.  In 1995, Prime Minister Benazir Bhutto and Iranian President Akbar Hashemi Rafsanjani signed an interim agreement in which the agreement provided for the construction of a gas pipeline linking the South-North Pars gas field in Karachi, Pakistan. Subsequently, Iran proposed to extend the pipeline from Pakistan to India.
A provisional agreement between Iran and India was signed in February 1999.  Iranian President Mohammad Khatami made a three-day state visit to Pakistan from 23 to 25 December 2002, the first visit by an Iranian head of government since 1992  It was a high-level delegation consisting of the Iranian cabinet, members of the Iranian parliament, the Iranian vice-president and President Khatami.  This visit should allow relations between Iran and Pakistan to make a fresh start.    It would also provide high-level discussion of the future of the Iran-Pakistan-India (IPI) pipeline project.  Khatami met with President Musharraf  and new Prime Minister Zafarullah Khan Jamali.   Several agreements were signed between Iran and Pakistan during this visit.  Khatami also gave a lecture on “dialogue between civilizations” at the Institute for Strategic Studies.  The presidential delegation first visited Islamabad, followed by a visit to Lahore, where Khatami also paid tribute to the tomb of Allama Sir Muhammad Iqbal.  At the end of Khatami`s visit, a joint communiqué was issued by Iran and Pakistan.
 Upon his return to Tehran, Khatami considered the trip to be “positive and fruitful”.  The regions that make up Iran and Pakistan today are under the rule of neighbouring Eurasian politics at various points in history, as Pakistan crosses an intermediate zone between the Iranian plateau and the Indian subcontinent. The Persian empire of Achaemenid, which overhanged (among other things) the territory between the Balkans and the territory of the Indus River (known as Hind  by the Persians), conquered the Balochistan regions, Sindh, Khyber Pakhtunkhwa and Western Punjab during the reign of Darius I.  In 2007/2008, according to the WTO, annual merchandise trade with Iran consisted of imports of $256 million and exports of $218.6 million.  In 1995, Pakistani Prime Minister Benazir Bhutto made a state visit to Iran to lay the groundwork for an energy memorandum and to begin work on an energy security agreement between the two countries. Prime Minister Nawaz Sharif then travelled to Tehran for the 8th OIC Summit Conference, which took place from 9 to 11 December 1997. Sharif met with Iranian President Mohammad Khatami to improve bilateral relations and find a solution to the crisis in Afghanistan.  After 119/11, reports were published indicating a tactical agreement between Iran and the Taliban.