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The research intends to investigate Iran-Pakistan economic and political links since 1947 and the issues/differences that affected the relations between them. Both Pakistan Iran have a long standing historical, cultural and religious ties. Persian literature and language have had a great impact on Sub-Continent's cultural and educational milieu. During the reign of Mohammad Reza Shah, the relations between Pakistan and Iran were friendly but after the Islamic revolution of 1979 Pakistan tilted towards Saudi Arabia for its own interests. The ideological dimensions of foreign policy of both the countries also marred the friendly relations. Iran has some apprehensions that border violations and subversions carried out inside Iran are with the connivance of US. The paper has mainly adopted qualitative methods. The study recommends that Pakistan can increase trade and diplomatic relations with Iran to take advantage of resource rich country. The minor differences between the two countries can also be tackled through trade and diplomacy. [ABSTRACT FROM AUTHOR]