Pakistan-Iran Striving For Ambitious Bilateral Trade Target Of $10 Billion By 2028

ISLAMABAD, (UrduPoint / Pakistan Point News - 4th Aug, 2025) Pakistan and Iran set an ambitious target of $10 billion for increasing bilateral trade by 2028 from the current volume of $3.1 billion recorded in the Fiscal Year 2024.

In the recent visit of President of Iran, Dr Masoud Pezeshkian to Pakistan, both sides agreed to finalize the bilateral Free Trade (FTA) as already, as Pakistan and Iran have already negotiated five rounds of dialogue on the agreement to finalize it.

The Free Trade Agreements (FTAs), several rounds of negotiations had taken place between the two countries, and mutual trade lists had been exchanged, with consensus developed on trade items.

It is pertinent to mention that two countries had signed the Preferential Trade Agreement in March 2004, which was required to be reviewed to enhance more effectiveness bilateral FTA.

Iran was willing to further strengthen bilateral trade cooperation; completion of energy projects, especially the IP gas pipeline; progress in the establishment of border markets; finalization of a free trade agreement; and collaboration on major ports and security areas.

In recent talks, both countries are already committed to regional economic and trade integration through North-South and East-West corridors that would not only connect Pakistan to Iran, but also help the former's trade and economic integration with Central Asia, Europe, the middle East and Russia.

Now, both countries were making joint efforts to achieve the target of enhancing their bilateral trade to $10 billion, and there was a possibility of opening a banking channel shortly. 

Transit trade, including the barter trade between the two countries, could be promoted as "we have the example of mutual trade in rice and meat".

Regarding the movement on the Pakistan-Iran border, crossing points had been opened, and the two countries were committed to providing more facilities at the crossing points to facilitate the movement of common people and transit trade.

In past both sides decided in principle to set up six border markets to promote mutual trade relations, and the Pishin border market had been completed and its inauguration was on the cards, while work on Gabd, Rimdan and Kohak markets would start soon.

The Taftan-Quetta train section needed to be repaired and both Iran and Pakistan had a consensus to do that.

Meanwhile in last day addressing to the Pakistan-Iran business Forum in Islamabad held as part of the two-day official visit of Iranian President Dr Masoud Pezeshkian to Pakistan, Federal minister for Commerce, Jam Kamal Khan confirmed that both sides have agreed to expedite the next session of the Pakistan-Iran Joint Economic Commission, which will play a pivotal role in resolving trade issues and unlocking new areas of cooperation.

The Minister said that other key areas of focus included the removal of non-tariff barriers, enhanced customs coordination, improved transport connectivity and border infrastructure development.

“We have significant untapped potential in minerals, agriculture, and energy sectors” and he invited Iranian businesses to explore investment opportunities in Pakistan.

Meanwhile, talking to the APP here, President Federation Pakistan Chamber of Commerce and Industry (FPCCI) Atif Ikram Sheikh, said that Pakistan and Iran are potential trading partners, which have huge potential for increasing bilateral economic and trade ties.

He said that the Private sector can play a significant role in increasing bilateral economic ties and building sustainable trade connectivity in regional countries.

President Islamabad Chamber of Commerce and Industry, Nasir Mansoor Quraishi, said that Pakistan and Iran can play a significant role in regional economic integration and both sides should engage the Chamber of Commerce for exchanging delegations at both sides.