PBF sees scope to lift Pakistan-Iran trade to $10bn after regional de-escalation

The Pakistan Business Forum (PBF) has urged Pakistan and Iran to capitalise on the recent easing of regional tensions by deepening economic cooperation, saying bilateral trade could increase fivefold from current levels if both countries pursue reforms, strengthen connectivity and expand energy cooperation.

PBF Chief Organiser Ahmad Jawad said official trade between the two neighbours remains at around $2 billion annually despite sharing a 900 kilometre border and having complementary economies. He said the volume could rise to $5 billion within the next few years before reaching $10 billion annually through improved border infrastructure, better banking arrangements, policy reforms and greater collaboration between the private sectors of both countries.

The forum also called for renewed discussions on the Iran Pakistan Gas Pipeline, describing the project as a key component of Pakistan's long term energy security strategy. Jawad said the pipeline, with a planned capacity of up to 750 million cubic feet of natural gas per day, could help address energy shortages, support industrial production, improve electricity generation, strengthen the fertiliser sector and reduce business costs if implemented within an appropriate legal and diplomatic framework.

According to Jawad, the recent de escalation in the region has created an opportunity to move beyond political engagement towards practical economic cooperation. He said Pakistan's diplomatic efforts to encourage dialogue and regional stability should now translate into stronger trade, investment and energy links with Iran.

He said Pakistan has considerable export potential in rice, textiles, fresh fruits, surgical instruments, pharmaceuticals, sports goods, leather products, halal food, cement, engineering goods and information technology services. Iran, meanwhile, could expand exports of natural gas, petrochemicals, fertilisers, chemicals, construction materials and dry fruits, supporting a more balanced bilateral trading relationship.

To facilitate deeper economic integration, the forum proposed establishing a Joint Economic Council with strong private sector representation, modernising border crossings, opening additional border markets, improving customs procedures, easing business visa issuance, promoting joint ventures and strengthening transport and logistics networks.

Jawad said lasting regional peace should now be converted into economic prosperity for the people of both Pakistan and Iran through sustained commercial engagement and closer economic cooperation.