Iran, Pakistan sign new trade agreement

Iran and Pakistan have signed a memorandum of understanding aimed at expanding trade cooperation and pushing both sides closer to a free trade agreement, while reaffirming their shared goal of raising bilateral commerce to $10 billion. The agreement was signed in Islamabad during the 10th meeting of the Iran-Pakistan Joint Trade Committee by the two countries’ commerce ministers. Alongside it, the chambers of commerce of Iran and Pakistan also signed a separate cooperation agreement to strengthen private-sector ties and encourage broader business engagement.

The new understanding focuses on several areas meant to improve economic relations. These include boosting trade in border regions, expanding maritime and shipping activity, removing trade barriers, setting up joint free trade zones, promoting barter trade, and accelerating efforts to implement a free trade agreement.

The understanding was reached during a meeting between Pakistani Prime Minister Shehbaz Sharif and a six-member Iranian delegation led by Iranian Minister of Industry, Mine and Trade Seyyed Mohammad Atabek in Islamabad. Sharif said Pakistan highly values its relations with Iran and expressed hope that sustained efforts will help the two countries achieve their leadership-set target of 10 billion U.S. dollars in bilateral trade. The two sides agreed to enhance facilities for border trade and keep border crossings open around the clock.

Officials said the package is intended to create a more practical framework for economic cooperation and help convert longstanding diplomatic goodwill into real commercial gains.

The signing came after a joint meeting in Islamabad between the Iranian minister and six senior members of Pakistan’s federal cabinet. The talks were described as strategic and centered on building a practical roadmap for expanding cooperation across commerce, transport, food security, maritime affairs, petroleum, and investment.