Islamabad says Iran to prioritize Pakistani rice, mango and meat exports under ‘landmark’ understanding

Islamabad says Iran to prioritize Pakistani rice, mango and meat exports under ‘landmark’ understanding
In this picture taken on March 31, 2021 workers fill a sack with rice at the Al-Barkat Rice Mills on the outskirts of Lahore. (AFP/ file)
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Updated 18 August 2025
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Islamabad says Iran to prioritize Pakistani rice, mango and meat exports under ‘landmark’ understanding

Islamabad says Iran to prioritize Pakistani rice, mango and meat exports under ‘landmark’ understanding
  • The development comes more than a week after Pakistan and Iran signed agreements aimed at raising bilateral trade to $10 billion
  • The two countries have attempted to forge closer economic and investment ties through border markets and trade links in recent years

ISLAMABAD: Iran will prioritize Pakistan’s rice, meat, mango and other exports as part of a “landmark” trade understanding reached between the two countries in Tehran, the Pakistani government said on Monday.

The statement came after a high-level ministerial meeting between both sides on food security and agricultural cooperation. National Food Security Minister Rana Tanveer Hussain led the Pakistani side. The meeting was co-chaired by his Iranian counterpart, Mr. Gholamreza Nourozi, and attended by senior representatives of key ministries, research institutions, and trade authorities from both countries.

Both sides reached an agreement for Iran to source a major portion of its rice imports from Pakistan for both government and private sector procurement, while the Iranian side assured of addressing longstanding challenges faced by Pakistani fruit exporters, particularly delays in issuance of import permits and foreign exchange allocations in Iran, according to Pakistan’s Press Information Department (PID).

“With these measures in place, exports of Pakistani mangoes to Iran are set to rise substantially,” the PID said, adding that the discussion also focused on Pakistan’s livestock and meat sector. “Iran agreed to focus on Pakistan as a principal supplier and to ensure that around 60 percent of its meat procurements are sourced from Pakistan.”

Similarly, Iran agreed to import large volumes of maize from Pakistan, with a commitment to resolve technical and procedural issues on priority and within the shortest possible time, according to the PID.

Recognizing the need for science-driven solutions in agriculture, both sides agreed to enhance cooperation between the Pakistan Agricultural Research Council (PARC) and Iranian research institutions.

“This collaboration will cover key areas of mutual advantage, including crop research, livestock breeding, water management, and innovation for farmers’ benefit,” the PID said.

Both sides reached a consensus on a wide range of facilitation measures aimed at easing agricultural trade, including faster customs clearance, establishment of warehouses and cold chain systems, and improvements in border

infrastructure to ensure perishable commodities reach markets efficiently and in prime quality.

“To ensure that these historic decisions are implemented effectively, a Joint Committee on Agricultural Cooperation was formally established,” the PID said. “The Committee will meet every six months to review progress, resolve emerging issues, and maintain the momentum of cooperation.”

The development comes more than a week after Pakistan and Iran signed agreements in the fields of politics, economy, culture and other vital sectors during Iranian President Dr. Masoud Pezeshkian’s visit to Pakistan, aimed at raising their bilateral trade to $10 billion.

Pakistan and Iran, which have remained at odds over instability along their porous border, have attempted to forge closer economic and investment ties through border markets and trade links in recent years.

“My deep belief is that we can easily, in a short time, increase the volume of our trade relations from the current $3 billion to the projected goal of $10 billion,” Pezeshkian told reporters during a joint press conference with Prime Minister Shehbaz Sharif and high-level delegations from both countries in attendance.

Both countries also discussed militancy along their shared border and exchanged 12 agreements and memorandums of understanding (MoUs) for cooperation in science, technology and innovation, cooperation in information and communications technology, exchange programs for culture, art, tourism, youth, mass media and exports, cooperation in meteorology, climatology, tourism cooperation and other fields.


Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies

Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies
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Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies

Pakistan cancels Eni LNG cargoes, seeks to renegotiate Qatar supplies
  • Move comes amid surplus gas in Pakistan due to lower industrial demand, higher renewable output
  • Islamabad also in talks with Qatar to defer or resell LNG cargoes under existing supply agreements

KARACHI: Pakistan has struck a deal to cancel 21 liquefied natural gas cargoes under its long-term contract with Italy’s Eni as part of a plan to curb excess imports that have flooded its gas network, according to an official document and two sources.

The document from state-owned Pakistan LNG Ltd. (PLL) to the country’s Ministry of Energy dated October 22 said 11 cargoes planned for 2026 and 10 for 2027 would be canceled at the request of gas distributor SNGPL.

Only the planned January shipment in both years, and the December shipment in 2027, would be retained to meet peak winter demand, according to the document, reviewed by Reuters.

Two sources familiar with the matter in Pakistan said that Eni had agreed to the move under the contract’s flexibility provisions. LNG is in strong demand globally, and suppliers typically stand to earn more by selling cargoes in the spot market than under long-term contracts.

Eni declined to comment. PLL, SNGPL, and Pakistan’s petroleum ministry did not reply to requests for comment.

RENEGOTIATING SUPPLIES FROM QATAR

PLL’s move marks one of Pakistan’s most significant steps yet to rein in LNG purchases as rising renewable generation and lower industrial demand leave it with surplus imported gas.

Eni signed a long-term LNG supply deal with PLL in 2017, committing to deliver one cargo per month until 2032, with the option to divert shipments to other destinations.

The first source, and a third, said that Pakistan was also in talks with Qatar about gas supplies from the Gulf state, with options including deferring some cargoes or reselling them under existing contract clauses. Last week a technical team visited Karachi to schedule the cargoes. The talks are ongoing and no decision has been reached, the first and third sources said.

QatarEnergy did not immediately respond to a request for comment.

TOO MUCH GAS, TOO LITTLE DEMAND

Pakistan’s long-term LNG supply deals with Qatar and Eni together cover around 120 cargoes a year, including on average nine a month from two Qatari contracts and one from Eni.

But Pakistan’s LNG imports have fallen sharply this year as demand from power producers dropped amid higher solar and hydropower output.

Lower gas use by power plants and industrial units generating their own electricity have added to the surplus, leaving the system significantly oversupplied for the first time in years.

The glut has forced Pakistan to sell gas at steep discounts, curb local production, and consider offshore storage or reselling excess cargoes, according to government presentations reviewed by Reuters.

Eni’s last delivered cargo to Pakistan was received at the GasPort terminal on January 3, according to Kpler data. The first source, and a fourth one, said Pakistan had also agreed a deal with Eni not to receive any further cargoes in 2025.

Eni shipped out 12 cargoes to Pakistan in 2024.