*ISLAMABAD, August 3, 2025* — In a significant move to deepen regionaleconomic ties, Pakistan and Iran have agreed to enhance their annualbilateral trade volume to $8 billion. The agreement was reached during ahigh-level meeting between Pakistan’s Minister for Commerce, Jam KamalKhan, and Iran’s Minister for Industry, Mine and Trade, Mohammad Atabak,held in Islamabad.
The decision marks a major step in the long-standing economic relationshipbetween the two neighboring countries. According to official data, thebilateral trade volume between Pakistan and Iran stood at $2.8 billion forthe fiscal year ending June 2025. Both ministers agreed that the currentlevel of trade is far below potential and called for accelerated efforts toimprove economic integration.
Speaking during the meeting, Commerce Minister Jam Kamal emphasized theimportance of transforming Pakistan and Iran’s shared geography into aneconomic asset. “It is time we unlock the full potential of our trade tiesand turn geographical proximity into a source of economic strength,” hesaid.
Iranian Minister Mohammad Atabak echoed these sentiments, stating that Iranis fully committed to expanding trade and investment with Pakistan. Hestressed the need for a structured and forward-looking trade framework toremove barriers and facilitate smoother transactions between the two sides.
A central theme of the discussions was the need to boost cross-border tradeinfrastructure and logistics. The ministers agreed to expedite preparationsfor the next session of the Pakistan-Iran Joint Economic Commission, whichis expected to play a key role in addressing regulatory and policy-levelhurdles to trade.
In addition to government-level talks, both sides welcomed the growingconfidence and trust between their respective business communities. As partof efforts to foster stronger private sector collaboration, a new series ofBusiness-to-Business (B2B) meetings was launched. These meetings aim toconnect Iranian and Pakistani entrepreneurs and facilitate direct tradepartnerships in key sectors such as agriculture, pharmaceuticals, textiles,energy, and construction.
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Both sides acknowledged that increased border cooperation and tradefacilitation are critical for achieving the ambitious $8 billion target.The development of border markets, improved customs coordination, andbanking mechanisms for trade settlements were highlighted as key areas forrapid progress.
This renewed commitment to economic cooperation comes at a time when bothPakistan and Iran are seeking to diversify their trade partners andstrengthen regional connectivity. The agreement also aligns with broaderefforts by the Economic Cooperation Organization (ECO) and other regionalframeworks to improve economic integration in West and South Asia.
As diplomatic and economic relations between Islamabad and Tehran continueto warm, analysts say the $8 billion trade goal, while ambitious, isachievable with sustained policy attention, logistical development, andprivate sector engagement.