Pakistan, Iran discuss $10bn trade target, border economic zone

Investment Minister Qaiser Ahmed Sheikh met Iranian Ambassador Reza Amiri Moghadam on Thursday to discuss bilateral economic cooperation, trade, investment and regional connectivity.

Both sides reaffirmed their commitment to increasing bilateral trade volume to $10 billion in the coming years.

The discussions focused on the memorandum of understanding already signed between Pakistan and Iran for establishing joint free or special economic zones along their shared border.

The two sides discussed the operationalisation of the special economic zone, particularly around the Rimdan-Gabd border region. They said the project, along with previously agreed border markets, could support livelihoods in border areas and increase cross-border commerce.

Ambassador Reza Amiri Moghadam said a joint visit was needed to finalise and notify the boundaries of the economic zone. He said Iran had completed demarcation on its side, while Pakistan’s side required coordination to move the process forward.

The meeting also reviewed the issue of Iranian containers stuck at Karachi Port for around 100 days. The ambassador sought Pakistan’s support for their early release, especially as some consignments include essential goods such as medicines.

Qaiser Ahmed Sheikh said the Board of Investment would obtain details and coordinate with relevant ministries to resolve the issue on priority.

Both sides also expressed concern over the decline in cross-border trade. They noted that before recent tensions, 700 to 800 trucks were crossing the border daily, but the number had fallen significantly.

The two sides discussed measures to increase the volume, with a potential target of up to 2,000 trucks per day.

Ambassador Moghadam also said Iran was ready to provide Pakistan greater access to Central Asian markets, offering opportunities for regional connectivity.

Both sides agreed to promote joint ventures and encourage private sector collaboration.

They also appreciated the leadership and diplomatic efforts of Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir in promoting regional peace and stability during recent challenging circumstances.

Qaiser Ahmed Sheikh congratulated the Iranian leadership on the successful conclusion of the recent conflict, while Ambassador Moghadam appreciated Pakistan’s constructive role and continued support.