Islamabad, August 3, 2025: In a significant move toward regional economic integration, Pakistan and Iran have agreed to raise their annual bilateral trade volume to $8 billion, with a vision to soon touch $10 billion, by leveraging geographic proximity and eliminating trade bottlenecks.
The agreement was finalized during a high-level meeting between Pakistan’s Commerce Minister Jam Kamal Khan and Iran’s Minister for Industry, Mines and Trade Mohammad Atabak, held on the sidelines of Iranian President Masoud Pezeshkian’s official two-day visit to Pakistan.
According to a statement issued by Pakistan’s Ministry of Commerce, both sides pledged to deepen economic ties by removing border hurdles and strengthening cooperation across priority sectors including energy, logistics, services, agriculture, and livestock.
Minister Jam Kamal Khan stressed that geography offers a “discount of distance” that must be utilized to reduce trade costs and time. “If we don’t leverage our neighbourhood advantage, we lose both economic time and cost benefits,” he said.
President Pezeshkian, who arrived in Lahore on Saturday before travelling to Islamabad, reiterated Iran’s commitment to enhancing trade, stating that Iran and Pakistan have always shared “good, sincere, and deep relations.” He envisioned bilateral trade surpassing $10 billion annually in the near future.
The ministers also discussed organizing targeted trade delegations, including provincial and federal chambers of commerce, to promote market access and regulatory cooperation. Khan cited successful examples of this approach in Belarus and suggested replicating it for Iran.
Iranian Minister Atabak, emphasizing business readiness on both sides, noted: “Traders and industrialists in both countries trust each other. What they need now is a clear, consistent facilitation mechanism.”
The two sides also explored the broader strategic scope of their economic partnership, aiming to create regional connectivity extending to Turkey, Central Asia, Russia, and parts of West Asia. Atabak further proposed holding dedicated B2B days during future state visits and committed to bringing Iranian business groups to Pakistan for deeper engagement.
“With high-level political alignment and growing mutual trust, this renewed partnership between Pakistan and Iran has the potential to transform regional trade dynamics,” the official statement concluded.
No Comments: