Iran, Pakistan step up economic ties with new trade agreement

Iran and Pakistan have signed a memorandum of understanding (MoU) aimed at expanding bilateral trade and strengthening economic cooperation, reaffirming their shared commitment to increasing trade volume to $10 billion and working toward a formal free trade agreement, Tehran Times reports.

The agreement was signed during the 10th session of the Iran-Pakistan Joint Trade Committee in Islamabad, attended by Iran's Minister of Industry, Mining and Trade, Seyyed Mohammad Atabak, and Pakistan's Minister of Commerce, Jam Kamal Khan.

The MoU follows extensive discussions covering a broad range of areas, including cooperation in border regions, maritime activities and shipping development, coordinated efforts toward a free trade agreement, the establishment of joint free zones, and the expansion of barter trade mechanisms.

Speaking at the signing ceremony, Atabak described the negotiations as productive.

"Overall, we had good negotiations with Pakistani officials. We also held an important meeting with the Federation of Chambers of Commerce of this country, and everyone emphasized the expansion of interactions between the two nations," he said.

Atabak noted that the talks over the previous two days had focused on strengthening commercial ties between the neighboring countries.

"Of course, in some cases, there is a need for facilities and removal of obstacles, and it was agreed that the Pakistani side would continue new follow-ups in this regard," he added.

The Iranian minister stressed that Tehran remains committed to expanding trade with Pakistan.

"We call on the business communities of both countries to play their essential role in this direction," he stated, adding that Iran's broader policy is to deepen cooperation with neighboring countries and, where necessary, meet its import needs through regional partners.

Among the key provisions of the memorandum are measures to activate border regions, increase cross-border trade with greater private-sector participation, facilitate exchanges of technical delegations, and accelerate the implementation of existing bilateral agreements.

Officials from the relevant ministries in both countries have been tasked with developing mechanisms to implement the agreement.

By Vafa Guliyeva