Pakistan, Iran agree on round-the-clock border operations to spur trade

Pakistan and Iran on Wednesday agreed to promote border trade by enhancing facilities to keep their shared border open round the clock, improving logistics and harmonising customs procedures.

The understanding was reached during a meeting between Prime Minister Shehbaz Sharif and a visiting six-member Iranian delegation led by Iran's Minister of Industry, Mine and Trade Syed Mohammad Atabak, according to a statement issued by the Prime Minister's Office.

"Pakistan views its relations with its esteemed neighbouring brotherly country, the Islamic Republic of Iran, with the highest regard," PM Shehbaz was quoted as saying.

He reiterated that Pakistan would continue its "sincere efforts for peace in the region" and referred to what he described as a productive recent discussion with Iranian President Dr Masoud Pezeshkian on promoting lasting peace and strengthening bilateral relations, particularly in trade.

The premier expressed hope that the $10 billion bilateral trade target set by the leadership of both countries would be achieved through sustained efforts.

He said both countries would benefit from expanding trade, particularly in food and agricultural commodities and products.

Read: Iran eyes expanded trade with Pakistan through Karachi, Gwadar ports

During the meeting, the two sides also agreed to enhance cooperation in the mining sector, particularly in the processing and value addition of precious stones.

The premier also conveyed a message of goodwill to Iran's Supreme Leader Ayatollah Syed Mojtaba Hosseini Khamenei and President Pezeshkian.

Speaking on the occasion, Atabak thanked Pakistan for the warm welcome and hospitality.

He praised the Pakistani leadership and people for their diplomatic efforts to promote peace in the region and for expressing solidarity with Iran.

The Iranian minister said Tehran was keen to further expand economic and trade relations with Pakistan, adding that technical-level negotiations on a free trade agreement between the two countries were underway.

Also Read: Pakistan, US make progress on reciprocal trade framework: finance ministry

Pakistan and Iran enjoyed robust trade relations before sanctions on Tehran intensified more than a decade ago, with bilateral trade surpassing $1.2 billion in FY10. However, tightening restrictions, including banking and financial sanctions, severely curtailed formal trade flows. Both countries could revive trade supported by greater economic engagement and the planned development of border Special Economic Zones, according to a report by Topline Securities.

Before sanctions disrupted trade, Pakistan exported rice, meat, paper, textiles, fruits and surgical goods to Iran, while importing chemicals, plastics, oil, iron and steel products.

They recently agreed to increase bilateral trade to $10 billion and expedite the finalisation of a free trade agreement, as the two neighbouring countries moved to deepen commercial ties during the 10th session of the Pakistan-Iran Joint Trade Committee in Islamabad.