Pakistan, Iran set $10 billion trade goal, finalize free trade agreement

August 4, 2025 (MLN): Pakistan has reaffirmed its commitment to deepening economic ties with Iran by the finalization of the long-awaited Pakistan-Iran Free Trade Agreement (FTA) and setting a $10 billion bilateral trade target by 2028.

The agreement is expected to provide a structured framework to significantly boost trade volumes and unlock new opportunities for cooperation.

This was shared during the Pakistan-Iran Business Forum held in Islamabad as part of Iranian President Dr. Masoud Pezeshkian’s two-day official visit, said a press release issued yesterday.

Earlier, President Pezeshkian met with President Asif Ali Zardari at Aiwan-e-Sadr, where both leaders shared their commitment to broaden cooperation across diverse fields. Emphasizing shared religion, culture, and mutual respect, they agreed on the need to enhance bilateral ties in mutually beneficial areas.

The two presidents also exchanged views on key regional and international developments, calling for coordinated diplomatic efforts to de-escalate conflicts and promote regional peace, security, and stability.

President Zardari appreciated Iran’s principled stance on regional issues and thanked them for their unwavering support for the people of Indian Illegally Occupied Jammu and Kashmir (IIOJK).

He also condemned the unprovoked Israeli aggression against Iran, lauding the resilience of the Iranian nation during the recent 12-day war. President Pezeshkian, in turn, expressed gratitude for Pakistan’s solidarity and praised its constructive role in advocating diplomacy and dialogue.

At the Business forum, Federal Minister for Commerce Jam Kamal Khan, highlighted the deep historical, cultural, and geographical ties between Pakistan and Iran, stressing the importance of strengthening regional connectivity.

“As someone from Balochistan, I know firsthand how vital cross-border trade with Iran is for our region’s livelihood,” he noted, drawing attention to the economic significance of their shared border.

The Minister further pointed to the recent reactivation of the Mand-Pishin Joint Border Market on July 30 as a major breakthrough.

He urged swift progress on two more border markets at Chaghi-Kouhak and Gabd-Reemdan, which he said would directly benefit border communities.

He also focused on the need to implement the barter trade mechanism to overcome currency and payment constraints, and stressed the importance of removing non-tariff barriers, enhancing customs coordination, and improving transport connectivity.

By emphasizing Pakistan’s untapped potential in minerals, agriculture, and energy, The Minister invited Iranian businesses to explore investment opportunities, reaffirming the government’s commitment to enabling trade through policy reforms and private-sector collaboration.

The forum concluded with a mutual agreement to expedite the next session of the Pakistan-Iran Joint Economic Commission, aimed at addressing trade bottlenecks and identifying new avenues for collaboration.

On the sidelines of the forum, Federal Minister for Commerce Jam Kamal Khan held talks with Iranian Minister for Industry, Mines and Trade, Mohammad Atabak.

Both ministers expressed a strong resolve to fast-track bilateral trade, address border bottlenecks, and develop structured, trust-based economic partnerships.

Jam Kamal emphasized the urgency of the moment, saying “the iron is hot,” and the need for swift follow-through on recent agreements. Minister Atabak praised Pakistan’s proactive engagement and proposed institutionalizing B2B sessions during future high-level visits.

The two sides reaffirmed the importance of neighborhood trade and agreed to fast-track the next session of the Pakistan-Iran Joint Economic Commission (JEC), with broader participation from public and private stakeholders.

This meeting added further momentum to the forum’s outcomes and signaled a new phase of actionable cooperation between the two countries.

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