Iran expresses interest in expanding economic cooperation with Pakistan through Karachi, Gwadar ports

Iran signaled a willingness to enhance economic collaboration with Pakistan via Karachi and Gwadar ports on Tuesday, as Tehran dispatched a delegation to engage with a Pakistani business entity in Islamabad, according to state broadcaster Radio Pakistan. Industry, Mine and Trade Minister Mohammad Atabak headed the Iranian team and jointly chaired the 10th meeting of the Pakistan-Iran Joint Trade Committee with Commerce Minister Jam Kamal Khan in Islamabad.

Atabak highlighted the importance of broadening economic ties between the two nations, emphasizing that Iran is keen on advancing comprehensive cooperation, particularly with Pakistan, a close ally. He further revealed that negotiations on the Iran-Pakistan free trade agreement are advancing well, with confidence in a successful conclusion in the near future.

Jam Kamal Khan concurred, stressing the critical role of establishing joint border markets to boost livelihoods and noted the mutual trust between the private sectors of Pakistan and Iran. He urged the establishment of clear, structured, and reliable frameworks to propel the economic partnership to new heights.

This meeting occurred approximately two weeks after Iranian Interior Minister Eskandar Momeni's visit to Islamabad, where he also met Railways Minister Hanif Abbasi. During this session, both parties agreed to broaden railway cooperation, strengthen cross-border connectivity, and discuss the revival of the Islamabad-Tehran-Istanbul (ITI) freight train service and initiatives to improve regional connectivity.

In April, Pakistan had previously authorized six routes for goods transportation to Iran under a bank guarantee arrangement, which required the Ministry of Commerce to issue a statutory regulatory order, the Transit of Goods through the Territory of Pakistan Order 2026. Earlier in the year, both nations signed several significant protocols aimed at eliminating tariff and non-tariff barriers, expanding electricity exchanges, and fortifying communication channels to significantly increase bilateral trade.

These protocols were finalized at the conclusion of the Pakistan-Iran Joint Economic Commission held in Tehran, with the commerce ministry stating that the agreements would help reach a $10 billion trade target.