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The paper mainly focuses on Balochistan, the only western Province of Pakistan which shares direct border with Iran. Due to its geographical location the Province of Balochistan occupies a special place in the friendly relations and mutual collaboration between Pakistan and Iran, especially, in the context of socio-cultural and economic interactions. But, despite of its paramount significance in Pak-Iran relations, there are also certain discouraging and disappointing factors which are equally responsible for creating misunderstanding, doubts and tension in the friendly bilateral relations between these two countries. The paper addresses these factors which make this province a destabilizing factor in Pak-Iran relations.