Islamabad/Tehran: Pakistan and Iran are edging closer to finalizing a Free Trade Agreement (FTA) as both countries push to expand economic ties and raise bilateral trade to $10 billion in the coming years.
During a recent official visit to Tehran, Pakistan’s Commerce Minister Jam Kamal Khan met with senior Iranian officials to discuss practical measures for boosting trade. The talks centered on strengthening border infrastructure, creating a more structured barter trade system, and making customs procedures easier for businesses on both sides.
At present, annual trade between the neighbors stands at roughly $3 billion. Pakistan’s rice and meat exports continue to see growing demand in Iran, but officials from both countries believe the scope of trade can be widened significantly through better transport links and logistics cooperation.
Beyond commerce, the discussions also underscored the importance of cultural and social engagement. Both governments highlighted tourism, business partnerships, and people-to-people exchanges as essential tools for building closer relations. Improved connectivity through upgraded border markets and facilities was described as a key driver of long-term cooperation.
To maintain momentum, the Pakistan-Iran Joint Economic Commission is expected to convene soon. The body will work on removing existing trade barriers, encouraging private sector involvement, and drafting new policies aimed at sustainable growth.
For both nations, the FTA is seen as a pivotal step toward unlocking the full potential of their economic partnership. If successful, it could open fresh opportunities for businesses and deliver tangible benefits to people on both sides of the border.
