Pakistan and Iran are finalizing a landmark Free Trade Agreement aimed at boosting bilateral trade, improving border connectivity, and expanding cooperation in agriculture, transport, and industry. The deal, currently under review by Pakistani authorities, marks a major step toward achieving $10 billion in annual trade by 2028.
Islamabad, November 2, 2025
Pakistan and Iran are on the verge of signing a landmark Free Trade Agreement (FTA) aimed at boosting bilateral commerce and regional connectivity. According to the Ministry of Commerce, the final draft of the accord has been completed and is currently under internal review by Pakistani authorities, with formal approval expected soon.
The progress was revealed during a high-level meeting between Federal Minister for Commerce Jam Kamal Khan and Iranian Ambassador Reza Amiri-Moghaddam in Islamabad, where both sides discussed new opportunities to strengthen bilateral trade and economic cooperation.
Minister Jam Kamal confirmed that the finalized FTA text, signed earlier in Islamabad, will soon be presented for government approval. Once operational, the agreement is expected to simplify trade procedures and expand the volume of goods exchanged between the two neighboring countries.
Iran Eyes Major Imports from Pakistan
Ambassador Amiri welcomed the development and praised Pakistan’s efforts to expand economic collaboration. He noted that flights between Quetta and Zahedan have resumed, improving people-to-people contact and enhancing trade logistics.
The envoy highlighted that Iran has completed its imports of 400,000 tons of rice from Pakistan and is now preparing to purchase animal feed and maize, further deepening agricultural trade.
Pakistan Set to Export Corn and Expand Agri Cooperation
Minister Jam Kamal invited Iranian enterprises and government bodies to take part in the FoodAg Exhibition 2025, scheduled from November 25 to 27 at the Karachi Expo Center. The exhibition is expected to serve as a major platform for trade, investment, and joint ventures in the agri-food industry.
He also proposed high-level visits between the Chief Minister of Balochistan and the Governor of Zahedan to facilitate cross-border commerce, improve livelihoods in the border areas, and explore new opportunities in maritime, railways, and communications sectors.
Target: $10 Billion in Annual Trade by 2028
The two sides reaffirmed their commitment to achieving $10 billion in annual bilateral trade by 2028, in line with the shared vision of the leadership of both nations.
Minister Jam Kamal expressed satisfaction with recent engagements, particularly the 22nd Session of the Pakistan-Iran Joint Economic Commission held in Tehran in September 2025, which laid the groundwork for enhanced cooperation in energy, transport, and industrial sectors.
He also appreciated Iran’s acknowledgment of Pakistan’s recent amendments to the barter trade mechanism, which have made cross-border transactions more efficient and transparent.
Joint Border Markets and Trade Facilitation
Highlighting new developments in border trade, the minister welcomed the reactivation of the Mand-Pishin Joint Border Market on July 30, 2025, and called for the quick operationalization of two more border markets at Chegdi-Kouhak and Gabd-Reemdan.
The commerce minister also emphasized the need to minimize non-tariff barriers, urging closer coordination between National Plant Protection Organizations (NPPOs) and quarantine agencies of both nations to ensure smoother movement of agricultural goods.
Both sides also discussed reactivating the Pakistan-Iran Joint Business Council to promote direct B2B engagement, which is expected to open up new channels of private-sector collaboration.
With this FTA nearing completion, Pakistan and Iran appear set to embark on a new era of economic partnership, deepening cooperation that extends far beyond trade into infrastructure, connectivity, and people-centered development.
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