Pakistan, Iran reaffirm to boost bilateral trade to $10 billion

ISLAMABAD: Pakistan and Iran on Tuesday reaffirmed their commitment to increase bilateral trade to $10 billion and accelerate negotiations on a free trade agreement, as the neighbours sought to deepen economic cooperation despite longstanding logistical and banking challenges.

The commitment was made during the 10th Pakistan-Iran Joint Trade Committee (JTC) meeting in Islamabad, co-chaired by Pakistan’s Commerce Minister Jam Kamal Khan and Iran’s Minister of Industry, Mine and Trade Mohammad Atabak.

Jam Kamal said that the two countries should transform their longstanding political and cultural ties into a stronger economic partnership by removing barriers to cross-border trade.

He called for the early conclusion of the Pakistan-Iran Free Trade Agreement and said obstacles related to border logistics, customs procedures and cargo movement must be addressed to facilitate commerce.

The commerce minister said that establishing joint border markets and introducing an Electronic Data Interchange (EDI) system would significantly boost bilateral trade, adding that the private sectors in both countries were ready to expand commercial ties if governments provided a predictable and business-friendly environment.

He said that the 10th JTC meeting would produce a practical roadmap to strengthen economic cooperation.

Atabak described Pakistan as Iran’s long-term strategic trade partner and expressed interest in expanding regional trade and logistics cooperation through Pakistan’s Karachi and Gwadar ports.

He also voiced hope that negotiations on the free trade agreement would be concluded soon and identified electricity trade and regional connectivity as key areas offering new economic opportunities for both countries.

The two sides also reaffirmed their commitment to promoting trade, investment, connectivity and cooperation between their private sectors.