Tehran/Islamabad, September 15, 2025 – Pakistan and Iran have moved a step closer toward strengthening bilateral trade ties, as both countries agreed to finalize a Free Trade Agreement (FTA) and operationalize border markets aimed at boosting commerce and improving connectivity.
The understanding came during Federal Minister for Commerce Jam Kamal Khan’s official three-day visit to Iran, where he met Seyyed Muhammad Atabak, Iran’s Minister of Industry, Mine and Trade.
According to an official press release, the two ministers held extensive discussions on enhancing bilateral cooperation. Minister Atabak welcomed Jam Kamal Khan and his delegation, while also expressing condolences over the devastating floods in Pakistan and sympathies for the families who lost loved ones.
During the meeting, Minister Jam Kamal highlighted Prime Minister Shehbaz Sharif’s vision of promoting regional trade by empowering the private sector. He noted that Pakistan’s exports of rice and meat to Iran had increased significantly in recent months, reflecting growing economic engagement. He also recalled the recent visit of Dr. Masoud Pezeshkian, which helped build momentum for stronger trade cooperation.
Minister Atabak reaffirmed that the government of Iran trusted Pakistan as a reliable partner, noting that frequent high-level visits demonstrated mutual commitment to achieving the $10 billion trade target set by both sides. He emphasized that tomorrow’s session of the Joint Economic Commission (JEC) would play a vital role in removing hurdles and facilitating smoother trade operations.
Currently, bilateral trade between Pakistan and Iran stands at around $3 billion. Both ministers agreed that achieving the target would require robust measures, including finalizing the FTA, expanding barter trade mechanisms, and enhancing people-to-people connections. They also underscored the importance of upgrading road and rail networks, developing ports, and improving interconnectivity to ensure smoother flow of goods across borders.
The Iranian delegation included senior officials such as Dehghan Dehnavi, Head of the Trade Promotion Organization; Abdol-Sadeh Neisi, Director General of the East Asia Office; and senior representatives from the Ministries of Trade and Foreign Affairs.
Concluding the meeting, both sides reaffirmed their shared determination to strengthen economic ties. The ministers expressed optimism that with joint efforts, improved infrastructure, and sustained dialogue, Iran and Pakistan would soon witness a significant leap in trade volumes and broader economic cooperation.