Pakistan and Iran have pledged to launch a new era of strategic economic partnership, aiming to remove trade barriers and build trust-based cooperation across key sectors. The commitment emerged during a high-level meeting in Islamabad between Pakistan’s Commerce Minister Jam Kamal Khan and Iran’s Minister for Industry, Mines and Trade Mohammad Atabak, held during Iranian President Masoud Pezeshkian’s two-day official visit.
Shared Vision for Economic Growth
Both ministers emphasized the urgent need to turn political goodwill into practical trade outcomes. They highlighted the potential of transforming long-standing diplomatic ties into structured economic collaboration, driven by institutional mechanisms and direct engagement between businesses on both sides.
Minister Atabak commended Pakistan’s proactive role in revitalizing bilateral trade. “The momentum we’ve built must now be translated into structured trade outcomes,” he stated, pointing to Islamabad’s quick and consistent engagement as a key factor behind recent progress.
Institutional Frameworks to Drive Trade
Commerce Minister Jam Kamal Khan called for action without delay. “This is the moment when the iron is hot—we must act swiftly. Delays only complicate things,” he said. Khan proposed expanding cooperation through the Joint Economic Commission (JEC), business-to-business (B2B) exchanges, and sector-specific delegations.
He emphasized the importance of institutional structures in sustaining long-term trade relationships. By organizing frequent B2B forums during official visits and replicating successful international models like those used in Belarus, Khan suggested that both nations could quickly identify and exploit market opportunities.
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Focus on High-Potential Sectors
The two ministers agreed to prioritize several sectors with strong mutual potential, including agriculture, livestock, energy, services, and cross-border logistics. These areas, they noted, align with each country’s economic strengths and offer significant room for growth.
Khan proposed that targeted delegations from both federal and provincial levels be sent to explore opportunities in regulatory alignment and market access. He stressed the importance of involving provincial stakeholders to ensure widespread ownership and rapid implementation.
Leveraging Geographic Advantage
A major theme of the meeting was geographic proximity. Khan referred to the “discount of distance” between Pakistan and Iran—an advantage that can significantly reduce trade costs and transit times.
He pointed to ASEAN’s success in intra-regional trade as an example Pakistan and Iran could follow. Efficient use of existing corridors and upgraded border infrastructure, he said, would help unlock billions in untapped trade potential and pave the way for seamless commerce.
Expanding the Trade Horizon
Commerce Minister Khan projected that with the right facilitation, annual bilateral trade could grow to between $5 billion and $8 billion. He also identified potential spillover benefits extending beyond the two nations to include Turkey, Central Asia, Russia, and parts of the Middle East.
This vision of expanded trade integration hints at the emergence of a regional economic bloc, with Pakistan and Iran playing leading roles. Both sides recognized the need for sustained coordination and consistent policy execution to realize this goal.
Iran Signals Readiness
Minister Atabak welcomed the idea of institutionalizing a dedicated B2B day during high-level exchanges. He confirmed Iran’s willingness to send trade delegations to Pakistan for detailed discussions and collaboration.
“Traders and industrialists in both countries are ready. They trust each other. What they need now is a clear and consistent facilitation mechanism,” Atabak stated. He urged rapid implementation of new agreements and highlighted the importance of consistency in trade policies.
Cultural Ties as a Foundation
To highlight people-to-people connectivity, Minister Khan shared a personal story involving a Balochi-speaking Iranian official. The anecdote underlined the strong cultural and linguistic ties shared across the border and the comfort zone they create for merchants and professionals.
“This isn’t just trade—it’s people-to-people connectivity,” Khan noted. “Familiarity and trust between our business communities can serve as the strongest foundation for sustainable integration.”
Next Steps and Shared Momentum
The meeting ended with a commitment to fast-track the next session of the Joint Economic Commission. Both sides agreed to engage public and private stakeholders, focus on logistics, and streamline border facilitation.
With growing trust, shared strategic goals, and political alignment at the highest levels, Pakistan and Iran appear ready to reshape the region’s economic landscape—starting with their own border.