[7] Historical and literary works attribute the building of the city to Khosrow Parviz of the Sassanids.

The agricultural organization of Qasr-e Shirin is building the biggest garden in the Middle East.

[23][24] Established in 1997, Parviz border crossing (Persian: گذرگاه مرزی پرویز) is located to the northwest at 5 kilometers from the city center.

[25] About 50 percent of Iran's non-oil products are being exported to Iraq via Parviz border crossing, a major land route for trade.

On average, 800-1,200 trucks carrying Iranian goods pass the crossing and continue on to Iraq daily.

[27] According to Yavar Mohammadi, one governor of the western Iranian city of Qasr-e Shirin, Parviz border crossing plays a significant role in the prosperity of the Iranian economy in general and Kermanshah province in particular.

[29] In the year March 2021 – 2022, exports to Iraq from this terminal stood at 2.53 million tons worth $1.02 billion.

[32][33] Iran and Iraq reached an agreement to resume the regular dispatching of caravan pilgrims starting 21 November 2022 from Khosravi border crossing.

Religious tourists from northern, northwestern and central Iranian provinces are to be dispatched to Iraq after spending one night at Qasr-e Shirin and Khosravi hotels.

Because of a lack of staff its operation was later limited to the thirteen days of holiday during Newruz of every new year.

[48] It also gives access to Ilam province after the small remaining part of miandar road in the Gilan-e Gharb-Eyvan route was paved in 2015 and made the distance to Ilam province around 40 Kms shorter through this road.

However after the approval of its free trade zone there have been calls for the urgency of the construction of a small scale airport in order for the FTZ to prosper.

According to Sa’dollah Masudian, the Iranian consul general in Iraq's Sulaymaniyah Governorate in June 2018, each day 1500 visas are issued for Iraqi travelers to Iran at Iran's consulate in Sulaymaniyah, one third of which is dedicated for medical tourism.