The 22nd meeting of the Iran-Pakistan Joint Economic Committee began in Tehran on Monday, co-chaired by Iran’s Minister of Transport and Urban Development, Farzaneh Sadegh, and Pakistan’s Federal Minister for Commerce, Jam Kamal Khan.
In her opening remarks, Minister Sadegh hailed the meeting as a significant step towards enhancing bilateral economic and commercial ties, The Caspian Post reports citing Iranian media.
She announced that a roadmap for achieving a $10 billion bilateral trade target would be finalized and signed by the relevant ministers within the next three months.
“This goal reflects the strong political will of both nations to deepen cooperation,” Sadegh stated. She emphasized that reaching this target would require strengthening banking relations and establishing secure, mutually agreed financial channels.
Highlighting the longstanding fraternal relations between the two nations, Sadegh expressed hope that the meeting would pave the way for expanded collaboration in economic, trade, banking, transit, energy, agricultural, and cultural fields.
She also thanked Pakistan for its supportive stance towards Iran at bilateral, regional, and international levels.
Transport and transit: key pillars of cooperation
A major focus of the discussions was on improving transport infrastructure.
Minister Sadegh stressed the necessity of developing border facilities, increasing parking capacity at the Mirjaveh and Taftan border crossings, and constructing the Zahedan-Taftan-Quetta railway line.
Other vital projects include launching shipping routes between the ports of Karachi (including Port Qasim) and Gwadar in Pakistan, and Chabahar and Bandar Abbas in Iran, she said.
The recent launching of direct Tehran-Islamabad flights was noted as a positive step, with both sides agreeing on the need to increase flight destinations and enhance aviation cooperation, the minister added.
In a significant regional development, Sadegh revealed plans to launch a monthly ECO train on the Islamabad-Tehran-Istanbul route, calling it a strategic regional rail project.
‘Islamabad ready to expand economic, technical, regional co-op with Tehran’
Addressing the same meeting, Pakistani Commerce Minister Jam Kamal Khan expressed his country’s readiness to expand cooperation with Iran in the economic, technical, and regional fields.
Echoing the sentiment of cooperation, the minister emphasized the deep historical, cultural, and religious bonds between the two countries.
“The people and government of Pakistan stand with the people of Iran and seek a shared future based on prosperity, security, and development,” he declared.
Minister Khan acknowledged that current trade volumes still fall short of the true potential.
He identified specialized committees, joint chambers of commerce, and the joint committee as key to boosting exchanges.
He proposed collaboration in new areas such as border markets, technical and engineering services, livestock, and agriculture, offering to share Pakistan’s expertise in irrigation and modern agricultural technology.
Renewable energy, transportation, technology: new areas of cooperation
Referring to the extensive capacities of the two countries in the energy sector, Pakistan’s minister of commerce stated that solar and wind energy could form the basis of strong partnerships for sustainable development in both countries and the region.
He also identified transportation as one of the key areas of cooperation, adding that given the existing capacities in road, rail, and sea transport, developing a transportation network could turn Iran into a gateway to South Asia and West Asia, thereby strengthening the regional roles of both countries.
Emphasis on innovative co-op, cultural ties, and addressing climate challenges
Jam Kamal Khan further highlighted the importance of developing new technologies, innovation, and the digital economy, stating that the establishment of innovation centers would not only contribute to employment and economic growth but also enhance the international competitiveness of both countries.
He also prioritized cooperation in information technology, tourism, sports, and cultural and social affairs, noting that population growth and climate challenges have exposed both countries to common threats. Therefore, cooperation in water resource management, health resilience, medicine, and healthcare could be highly impactful.
Shared vision on the global stage
In conclusion, Pakistan’s minister of commerce pointed to the shared perspectives of the two countries on global relations, stating that Iran and Pakistan share common goals in promoting peace, prosperity, and security in the region and the world.
He expressed hope that this meeting, through tangible and constructive decisions, would strengthen strategic cooperation and achieve new heights in bilateral relations.
Iran-Pakistan business forum held in Tehran
An Iran-Pakistan business forum was held in Tehran on the sidelines of the first day of the two countries’ joint economic committee meeting on Monday.
The event was participated by Iranian Transport and Urban Development Minister Farzaneh Sadegh and Pakistan’s Federal Minister for Commerce Jam Kamal Khan.
Addressing the forum, the head of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) stated that Iran's share of the Pakistani market is only three billion dollars per year, which is very insignificant. This gap clearly indicates the potential for expanding economic cooperation between the two countries.
Samad Hassanzadeh added that the relations between Iran and Pakistan, given the significant capacities of both nations, could serve as a model for regional cooperation.
Hassanzadeh noted that Pakistan, with a population of over 240 million and a growing economy, is one of the major strategic markets in the region.
He mentioned that the country's annual import volume is 70 billion dollars, of which Iran's share is only three billion dollars, which is very insignificant. This gap clearly highlights the potential for expanding economic cooperation between the two countries.
The head of the Iran Chamber emphasized that in this regard, the Iran Chamber has planned a series of targeted measures, including organizing trade delegations, holding joint exhibitions, and signing preferential trade agreements, which could help reduce tariff barriers and create stability in economic relations.
Referring to diplomatic and economic efforts to enhance the level of economic relations between the two countries, he stated that revising the base prices of certain goods, including construction materials, and reducing customs tariffs for products such as powdered milk, detergent powder, steel sheets, etc., demonstrate the effectiveness of the economic diplomacy between the two countries. He added that it is now essential to continue this upward trend with serious determination and will.
Hassanzadeh continued that establishing joint banking channels, developing joint investments in tourism, production, and trade, and facilitating access to information for economic activists are among the measures that can bring the level of economic relations between the two countries closer to their true potential.
He emphasized that Iran has significant capacities in technical and engineering services, refinery construction, food industries, pharmaceuticals, medical equipment, academia, the development of science and technology parks, knowledge-based initiatives, and the establishment of industrial towns and free zones. The Iran Chamber, as the representative of the private sector, is ready to facilitate the realization of these goals for both countries, paving the way for a bright future for the economies of Iran and Pakistan.
Also on August 3, an Iran-Pakistan Business Conference was held in Islamabad with Iranian President Masoud Pezeshkian in attendance, alongside a high-ranking delegation. The event was hosted by Pakistan’s Deputy Prime Minister and Foreign Minister, Senator Mohammad Ishaq Dar.
Upon his arrival at the conference venue, Pezeshkian was welcomed by Senator Dar. The gathering brought together numerous business leaders, officials from chambers of commerce, and representatives of major Pakistani investment firms.
In his opening remarks, Pakistan’s Commerce Minister Jam Kamal Khan welcomed the finalization of a draft Free Trade Agreement between the two countries and said both sides are committed to resolving tariff-related issues and enhancing border infrastructure.
He announced that the next session of the Iran-Pakistan Joint Economic Commission will be held in Tehran next month and highlighted the activation of the Pishin-Mand border market as a joint commitment aimed at boosting bilateral trade. He also revealed plans to open a new border crossing at Chadgi-Kouhak.
Iran’s Minister of Industry, Mining and Trade Mohammad Atabak, also addressed the conference, expressing appreciation for Pakistan’s support of Iran during Israel’s recent 12-day offensive, which he said had deeply resonated with the Iranian public.
Atabak noted that while trade volumes between the two countries had increased last year, implementation of current agreements will require expansion of land terminals, improvement of rail connectivity, and enhanced port cooperation.
Senator Dar emphasized the close ties between Iran and Pakistan under the framework of the Economic Cooperation Organization (ECO), and invited Iranian investors to explore opportunities in Pakistan, citing broad economic reforms and the creation of a special investment facilitation council.
Referring to his recent talks with Iranian Foreign Minister Seyed Abbas Araghchi, Dar said both countries are determined to strengthen cooperation in customs and border infrastructure development.
Iran and Pakistan have been striving to expand economic cooperation despite longstanding infrastructure bottlenecks and geopolitical challenges. Both nations are part of the ECO bloc and share strategic interests in regional trade connectivity, especially through initiatives like the Pishin-Mand border market and the INSTC corridor.
Also, Reza Masrour, Secretary of Iranian Free Trade, Industrial and Special Economic Zones High Council, who was one of the delegates accompanying President Pezeshkian during his visit to Pakistan, said that Iran and Pakistan were exploring joint agricultural ventures and transport corridor integration as part of efforts to boost bilateral trade, including plans for cross-border rice cultivation and connecting Pakistan’s China-backed economic corridor to Iran.
He proposed several initiatives in a meeting with Pakistani Commerce Minister Jam Kamal Khan, held on August 3, on the sidelines of President Masoud Pezeshkian’s official trip to Pakistan.
Among the key proposals were joint paddy farming in Pakistan and processing the rice in Iran’s Chabahar Free Zone, as a way to address Iran’s severe water shortages while expanding agricultural cooperation.
Masrour also called for multi-entry business visas, the establishment of a joint free zone, and linking the China-Pakistan Economic Corridor (CPEC) through Iran to Russia and Europe via the International North-South Transit Corridor (INSTC).
“These ideas reflect our neighborhood-focused policy, and the potential to unlock joint production and significantly expand trade,” Masrour said, emphasizing the shared cultural and historical ties between the two countries.
Pakistan’s commerce minister welcomed the proposals and said their implementation could substantially boost the current trade volume, which he estimated at around $3.0 billion.
Iran and Pakistan signed a joint statement, in Islamabad on August 3, pledging to expand cooperation in agriculture, trade and food security, with officials setting a goal to boost bilateral agricultural trade to $3.0 billion within two years.
Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh said current exchanges stand at around $1.4 billion, but the two countries have complementary strengths that can be used to secure each other’s needs across different seasons.
He noted that Iran will expand exports of dairy products, nuts, fruits and vegetables to Pakistan, while Islamabad will supply a portion of Iran’s corn and rice demand and provide at least 60 percent of its meat imports under the new plan.
Nouri said the two sides agreed to strengthen cooperation in research on climate change and food security, and to set up a joint agricultural committee that will meet every six months to monitor progress and resolve bottlenecks.
“The construction sector may drive the economy, but agriculture drives food security,” he said, stressing that regional collaboration is key in adapting to global changes.
Rana Tanveer Hussain, Pakistan’s Federal Minister for Industries and Production and National Food Security and Research, described the Tehran meeting as “fruitful,” highlighting agreements on boosting agricultural trade, scientific collaboration and joint efforts to address climate change.
He said increasing imports and exports between the two neighbors would be more economical than relying on distant suppliers such as Brazil, particularly in rice and livestock.
Officials emphasized that trade would involve both the public and private sectors, with mechanisms such as barter and tailored trade facilities under discussion.
They said the initiative not only aimed at ensuring mutual food security but could also contribute to regional stability.
Iran and Pakistan also signed two agreements on agricultural cooperation, on August 20, focusing on the creation of a joint agriculture committee and collaboration in plant protection and quarantine.
The signing ceremony took place in Tehran with Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh and Pakistan’s Minister for National Food Security Rana Tanveer Hussain in attendance.
Nouri said the agreements were the outcome of a three-day visit by a Pakistani delegation and joint meetings between the two sides.
One memorandum of understanding establishes the first Iran-Pakistan Joint Agriculture Committee, while the other outlines cooperation on plant health and quarantine measures.
Nouri said the two countries, given their agricultural capacities and food security needs, have a strong basis for expanding cooperation.
The minister added that the initiative follows up on Iranian President Masoud Pezeshkian’s recent trip to Pakistan, where both sides agreed to pursue food security and agricultural trade more actively.
He said the deals are aimed at removing barriers in exports and imports of key commodities.
Nouri predicted that bilateral trade in food and essential goods, currently about $1.3 billion a year, could grow to $3.0 billion within two years.
He said Pakistan has committed to sourcing part of its food and agricultural needs from Iran, while Tehran will import essential goods from Pakistan. He added that barter trade could help accelerate the exchange.
Pakistan’s food security minister Hussain said the agreements were part of instructions from Prime Minister Shehbaz Sharif to advance commitments made during Pezeshkian’s visit to Islamabad.
He confirmed that two cooperation documents, covering both technical and broader agricultural areas, had been finalized.
Hussain stressed that Islamabad is ready to cooperate in meeting agricultural and food requirements of both countries.
As announced on August 2, by Hamidreza Karbalaei Esmaeili, the deputy for the Indian Subcontinent at Iran’s Trade Promotion Organization (TPO), Iran enjoys a trade surplus with Pakistan, exporting goods at 3.5 times the volume of its imports from the neighboring country.
Karbalaei Esmaeili shared the figures ahead of President Masoud Pezeshkian’s official visit to Islamabad in the same day, his first bilateral foreign trip since Israel’s 12-day military campaign against Iran. The visit, taking place under ongoing regional uncertainty, is seen by analysts as both a symbolic and strategic move tied to post-conflict diplomacy and regional stability.
“Trade between Tehran and Islamabad is on an upward trajectory,” Karbalaei Esmaeili said in an interview with IRNA. He noted that bilateral trade increased by 13.6 percent in the Iranian year 1403 (March 2024-March 2025) compared to the previous year, reaching a total of $3.129 billion.
Iran exported around $2.423 billion worth of goods to Pakistan during the period, while imports from Pakistan stood at $706 million. The bulk of Iran’s exports included petroleum products, powdered milk, and dates, while major imports from Pakistan were rice, oilseeds, and various meat products.
Despite the positive trade balance, figures for the first quarter of the current Iranian year show a decline, reflecting regional instability. Iran’s exports to Pakistan from March to June 2025 totaled $420 million - a 20 percent drop compared to the same period last year - while imports reached $174 million, down by 4.0 percent.
The TPO official attributed the slowdown to regional conditions but emphasized the need to accelerate efforts to boost trade infrastructure and finalize long-pending trade agreements.
“Free trade between Iran and Pakistan technically began in 2016, but progress has been slow,” he said. “We hope upcoming agreements will fulfill this decade-long expectation and unlock significant growth.”
Karbalaei Esmaeili stressed that enhancing logistical capabilities, customs cooperation, and transport infrastructure would be critical to sustaining long-term trade growth between the two countries.
