Pakistan, Iran target FTA

Sign minutes after two days of talks covering $10b trade, investment and border connectivity

ISLAMABAD:

Pakistan and Iran on Wednesday agreed to accelerate efforts to expand bilateral trade and investment, reaffirming their commitment to achieving a shared target of $10 billion in annual trade through stronger economic cooperation, progress on a proposed free trade agreement (FTA) and enhanced business-to-business engagement.

The understanding emerged during the 10th session of the Pakistan-Iran Joint Trade Committee, co-chaired by Federal Minister for Commerce Jam Kamal Khan and Iran's Minister of Industry, Mines and Trade Dr Mohammad Atabak. The two sides signed the agreed minutes after two days of deliberations covering trade facilitation, industrial collaboration, investment and border connectivity.

Both countries welcomed progress on the proposed FTA, including discussions on rules of origin, tariff reduction modalities and product lists. The meeting also emphasised the need for expanding barter trade, encouraging private-sector participation, activating joint border markets and improving customs coordination, transport, logistics and border infrastructure to facilitate the movement of commercial cargo, particularly perishable goods. Separately, Federal Minister for Board of Investment Qaiser Ahmed Sheikh met a high-level Iranian business delegation and highlighted Pakistan's investment potential, describing the country's population of over 250 million as a large market offering significant opportunities for trade and foreign investment.

The Iranian delegation included Trade Facilitation and Development Chairman Mohammad Reza Jafarollahi, Shahrooz Shariat and representatives of the Kerman and Tehran Chambers of Commerce. The delegation underscored Kerman province's economic strengths, noting it hosted four economic zones, more than 2,000 members in its chamber of commerce and was globally recognised for pistachio and date production while leading Iran's mining sector.

During discussions, both sides explored the establishment of a trade corridor linking Karachi, Rimdan, Bam and potentially Chabahar, with a proposal to develop the project through joint investment. They also noted that Pakistan's exports to Iran had recently recorded significant growth, while more than 1,000 business meetings had already taken place between Pakistani entrepreneurs and their counterparts in Kerman. Highlighting sector-specific opportunities, Shahrooz Shariat said Iran was importing around one million tonnes of rice annually, with Pakistan's share rising to nearly 40%, leaving room for further expansion.