ISLAMABAD: Pakistan and Iran agreed on Wednesday to expand border trade by extending operating hours at border crossings, improving customs coordination and logistics, and enhancing cooperation in the mining sector, as the two neighbors push ahead with negotiations on a free trade agreement.
Pakistan and Iran share a roughly 900-kilometer (560-mile) border but annual trade remains well below the $10 billion target the two governments set in 2024. Economic ties have long been constrained by international sanctions on Iran, banking restrictions, security concerns along the border and limited transport infrastructure. Both countries have in recent years sought to boost formal commerce through joint border markets, barter trade arrangements and negotiations on a free trade agreement.
On Wednesday, Iran’s Industry, Mine and Trade Minister Seyed Mohammad Atabak, who is leading a six-member delegation visiting Pakistan, met Prime Minister Shehbaz Sharif in Islamabad a day after co-chairing the 10th Pakistan-Iran Joint Trade Committee with Pakistan’s Commerce Minister Jam Kamal Khan.
“Pakistan and Iran agreed to promote border trade by expanding facilities, keeping border crossings open 24 hours a day, improving logistics, and harmonizing customs procedures,” the Prime Minister’s Office said in a statement after the meeting.
The statement said both sides also agreed to expand cooperation in the mining sector, particularly in the processing and value addition of precious gemstones.
Sharif expressed confidence that sustained efforts by both governments would help achieve the longstanding target of increasing annual bilateral trade to $10 billion.
The prime minister also said expanding trade in food, agricultural commodities and agricultural products would benefit both countries.
The meeting followed Tuesday’s session of the Pakistan-Iran Joint Trade Committee, where officials from both sides said negotiations on a proposed free trade agreement were progressing well. Atabak said technical-level talks on the agreement were continuing and expressed hope they would conclude successfully in the near future.
Pakistan and Iran have been working to deepen economic cooperation despite geopolitical and financial constraints. The two countries have opened several joint border markets to encourage formal trade in frontier areas and have explored barter trade mechanisms to facilitate commerce despite banking restrictions linked to sanctions on Iran.
