In a significant trade move, Pakistan and Iran have agreed on an ambitious $8 billion annual trade goal to boost their bilateral trade, a move aimed at strengthening economic collaboration and regional connectivity. The decision was announced after a high-level meeting between the Federal Minister of Commerce, Jam Kamal Khan, and his Iranian counterpart, Mohammad Atabak.
The meeting held in Islamabad renewed the effort by both nations to fast-track the trade process and the development of bilateral relations. Both ministers stressed the need to convert their geographical proximity into economic gains.
“The time has come to convert geographical proximity into economic benefits,” stated Jam Kamal Khan, highlighting the strategic advantage of their shared border. The ministers also decided to enhance the cooperation in the border regions and to speed up the next meeting of the Pak-Iran Joint Economic Commission to formalize their cooperation.
Growing Business and Border Cooperation
As a sign of growing confidence, both parties were glad to note the increased trust between the business communities of both nations and initiated a new cycle of business-to-business (B2B) meetings to explore deeper cooperation. The talks encompassed a broad range of sectors, such as trade, agriculture, energy, livestock, logistics, and IT services, but the major focus was on better utilization of the already existing border facilities.
Jam Kamal Khan stated that the relations between Iran and Pakistan are a symbol of culture, trade, and brotherhood. Minister Atabak echoed this by reaffirming that close relations between the two neighboring countries could be a source of great stability in the region.
This was part of the visit of Iranian President Dr. Masoud Peshkeshian, who attended the meeting with Prime Minister Shehbaz Sharif in Islamabad. The two leaders engaged in top-level discussions, and the Iranian president also planted a sapling at the Prime Minister’s House in signs of good relations. During a parallel meeting, the Defense Minister Khwaja Asif and his Iranian counterpart General Aziz Nasserzadeh discussed the elements of security and counter terrorism cooperation.
The push for greater legal trade comes after the Pakistani government implemented strict measures to curb oil smuggling from Iran. These measures have already delivered major results, with a 340 percent rise in legal trade said to have been recorded. Nevertheless, local businesses are still worried about the persistence of the illegal oil trade, a problem that the two governments will have to deal with to achieve the lasting success of their ambitious $8 billion annual trade goals. The new agreements are the collective vision to create a more integrated and prosperous regional economy.
