Pakistan and Iran have reiterated their pledge to lift bilateral trade to $10 billion, a target that would more than double the current volume of goods exchanged between the two neighbours. The announcement came after a series of high‑level meetings in Islamabad, where officials from both sides underscored the strategic importance of deepening economic ties amid regional shifts in trade routes and energy markets.
Presently, trade between Pakistan and Iran stands at roughly $4–5 billion annually, with Pakistan exporting mainly textiles, leather goods and agricultural products, while Iran supplies crude oil, petrochemicals and industrial machinery. Reaching the $10 billion mark would not only boost domestic industries but also position the two countries as key players in the broader Indo‑Middle East trade corridor.
A cornerstone of the renewed commitment is the pursuit of a comprehensive free‑trade agreement (FTA). Tehran has expressed optimism that the FTA can be finalized early in the year, citing progress in negotiations over tariff reductions and customs procedures. The agreement is expected to streamline cross‑border transactions and create a more predictable environment for investors on both sides.
Pakistan’s commerce minister, Jam Kamal, called for the removal of lingering trade barriers that hamper the flow of goods. He highlighted issues such as cumbersome customs documentation, non‑tariff restrictions on certain product categories, and the need for harmonised standards. Addressing these obstacles, he argued, would unlock the full potential of the $10 billion target and foster greater market access for Pakistani exporters.
Both governments are also looking to strengthen logistics links through Karachi and the newly developed Gwadar port. By improving connectivity and reducing transit times, the two countries aim to make the supply chain more efficient, thereby lowering costs for businesses and enhancing the competitiveness of their products in regional and global markets. Enhanced port cooperation could also position Pakistan as a critical transit hub for Iranian goods destined for South Asia and beyond.