Pakistan and Iran have pledged to increase bilateral trade to $10 billion, accelerate work on a free trade agreement, and strengthen border connectivity, logistics, and investment cooperation.
ISLAMABAD: Pakistan and Iran have reaffirmed their commitment to increase bilateral trade to $10 billion, with both countries pledging to deepen economic cooperation, improve border connectivity, and accelerate negotiations on a bilateral Free Trade Agreement (FTA).
The commitment was reiterated during the 10th session of the Pakistan-Iran Joint Trade Committee (JTC), being held in Islamabad from August 3 to 5. The meeting was co-chaired by Pakistan’s Commerce Minister Jam Kamal Khan and Iran’s Minister of Industry, Mine and Trade Mohammad Atabak.
During the meeting, Commerce Minister Jam Kamal Khan called for transforming the two countries’ long-standing ties into a stronger economic partnership by removing barriers to trade and facilitating cross-border commerce.
According to Pakistan’s Ministry of Commerce, Khan stressed the need to finalize the Pakistan-Iran Free Trade Agreement and improve border logistics and cargo movement. He said expanding joint border markets and implementing electronic data interchange systems could significantly increase trade volumes.
The two sides also reviewed measures already introduced to facilitate bilateral commerce.
Khan said businesses in both countries were ready to expand commercial ties and urged both governments to provide a predictable and business-friendly environment.
He expressed confidence that the Joint Trade Committee would develop a practical roadmap to unlock the full potential of bilateral trade.
Iranian Minister Mohammad Atabak described Pakistan as Iran’s “long-term strategic trade partner” and expressed Tehran’s interest in strengthening regional trade through Karachi and Gwadar ports.
He also identified electricity trade and enhanced regional connectivity as important opportunities for future economic cooperation and voiced optimism that the Pakistan-Iran Free Trade Agreement would be concluded soon.
Since March, Pakistan and Iran have introduced several initiatives aimed at simplifying cross-border trade.
These measures include easing customs procedures, formalizing Taftan as a customs station, notifying new transit routes, and expanding legal trade channels amid regional economic challenges linked to tensions in the Middle East.
Pakistan has also allowed exporters to continue shipping selected food products and pharmaceuticals to Iran through land routes without mandatory banking instruments.
Additionally, Islamabad approved land-route exports of rice to Central Asian Republics and Azerbaijan through Iran and designated Jeerak in Panjgur district as a new customs station to strengthen border management and formalize cross-border trade.
The initiative follows the opening of the Kohak-Cheedgi crossing in January 2025 and the Gabd-Rimdan border point in December 2024.
The latest meeting follows the recent visit of Iranian Interior Minister Eskandar Momeni to Islamabad, where both countries agreed to expand railway cooperation and revive the Islamabad-Tehran-Istanbul (ITI) freight train service.
Officials also discussed measures to improve regional transport links and facilitate trade through Pakistan’s ports.
Pakistan and Iran will continue discussions during the Joint Trade Committee meeting through August 5, focusing on finalizing a roadmap to expand bilateral trade, conclude the proposed Free Trade Agreement, and strengthen cooperation in trade, investment, logistics, and private-sector partnerships.
If implemented successfully, the initiatives are expected to support the shared objective of increasing bilateral trade to $10 billion while enhancing regional economic connectivity.
