Pakistan, Iran eye new trade corridor to strengthen regional connectivity

August 06, 2026 (MLN): Pakistan and Iran have agreed to explore new avenues for bilateral trade, joint investment, and economic cooperation, with discussions focusing on improving connectivity, expanding trade routes, and promoting investment across multiple sectors.

The understanding emerged during a meeting between Federal Minister for Board of Investment (BOI) Qaiser Ahmed Sheikh and a high-level Iranian business delegation, accompanied by officials from the Iranian Embassy, according to APP.

Both sides discussed ways to strengthen commercial relations by encouraging investment partnerships and enhancing trade facilitation.

The minister said Pakistan's market of more than 250 million people offered significant opportunities for Iranian investors and highlighted the strong historical, cultural, and religious ties shared by the two neighboring countries.

The Iranian delegation briefed the meeting on the economic significance of Kerman province, noting that it hosts four economic zones and a Chamber of Commerce with more than 2,000 members.

They said the province has a strong mining sector, contributes around 25% to Iran's agricultural production, and is internationally known for pistachio and date cultivation.

The delegation proposed establishing a strategic trade corridor connecting Karachi, Rimdan, Bam, and potentially extending to Chabahar, suggesting that a joint investment initiative for the route could improve regional connectivity and facilitate cross-border trade.

The Iranian representatives also highlighted growing commercial engagement between the two countries, stating that Pakistan's exports to Iran have recorded an increase and that business interaction has expanded, with more than 1,000 business-to-business meetings already held in Kerman involving Pakistani entrepreneurs.

During the discussions, opportunities in the rice trade also came under focus.

The Iranian side noted that the country imports around one million tonnes of rice annually and that Pakistan's share in those imports has risen to nearly 40%, while identifying areas where trade procedures could be streamlined to support higher exports.

Qaiser Ahmed Sheikh underscored the potential for joint ventures in rice processing, petrochemicals, steel, engineering services, and auto parts. Referring to successful international collaboration models, he encouraged similar partnerships between Pakistani and Iranian businesses.

To address banking and sanctions-related constraints, the minister proposed expanding barter trade arrangements, particularly through the exchange of commodities such as rice and chemicals, to sustain bilateral commerce.

The meeting also examined cooperation in engineering services, testing, inspection, and certification.

The minister said Pakistani institutions, including the Pakistan Standards and Quality Control Authority (PSQCA), could assist in meeting certification requirements and support joint ventures with international companies.

The Iranian delegation appreciated Pakistan's efforts to facilitate investors and invited the BOI leadership to visit Iran to further strengthen institutional and business cooperation. The minister welcomed the invitation, saying such a visit was already under consideration as part of efforts to advance economic diplomacy.

The discussions were held amid growing bilateral engagement, including the ongoing visit of Iran's trade minister to Pakistan and the activation of the Joint Trade Committee.

BOI Director General Mehmood Tufail reaffirmed the board's commitment to facilitating foreign investment and promoting stronger trade and investment ties between Pakistan and Iran through mutually beneficial partnerships.

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