Pakistan, Iran vow to deepen trade cooperation

ISLAMABAD: Pakistan and Iran on Sunday reiterated their commitment to deepening bilateral cooperation in trade, connectivity and other areas, while also pledging to work together for regional peace, the Foreign Office said.

Deputy Prime Minister and Foreign Minister Ishaq Dar held a telephone conversation with his Iranian counterpart, Seyyed Abbas Araghchi, during which the two leaders exchanged views on regional developments and the state of bilateral relations.

According to the Foreign Office, both sides reaffirmed their resolve to strengthen cooperation in trade, connectivity and people-to-people exchanges, and underscored the importance of close coordination for regional peace and development.

Pakistan and Iran have in recent years sought to boost bilateral trade and economic ties, including through the establishment of border markets and discussions on barter trade to overcome banking and currency constraints.

Sanctions on Iran and foreign exchange shortages have remained major challenges, making cross-border markets and barter arrangements an important component of bilateral trade.

Despite these efforts, progress towards the shared goal of increasing bilateral trade to USD 10 billion has been slow. Relations between the two neighbours have also been complicated by security concerns, particularly instability along their porous border, which at one point led to a brief exchange of missile strikes in 2024. Both countries, however, moved swiftly to defuse tensions.

Iranian President Dr Masoud Pezeshkian visited Pakistan in August, during which the two sides signed agreements aimed at raising bilateral trade to USD 10 billion by 2028.

Islamabad and Tehran have also maintained a common stance on regional and international issues, including strong criticism of Israel’s war on Gaza and what they describe as repeated violations of a fragile ceasefire brokered by global powers, including the United States.

Copyright Business Recorder, 2025