Iran and Pakistan Forge Ambitious Path Towards $10 Billion Trade Partnership
In a significant development for regional cooperation, Iran and Pakistan are laying the groundwork for a substantial expansion of their economic ties, with a bold target of raising bilateral trade to $10 billion. The announcement came during a high-level visit by Iran’s Parliament Speaker, Mohammad Bagher Ghalibaf, to Islamabad, highlighting a shared commitment to deepen the historical bonds between the two nations.
A Foundation of Mutual Support
Addressing members of the Pakistan Chamber of Commerce, Ghalibaf opened his remarks by extending formal gratitude. He thanked the people, government, parliament, and all political groups of Pakistan for their “robust support” and condemnation of “foreign aggression” during a recent period of challenge for Iran. He emphasized that this demonstration of solidarity and principled stance would be permanently etched in the memory of the Iranian people, reinforcing the deep-rooted cultural, historical, and social relations that form the bedrock of the bilateral relationship.
Embracing a Digital Future Together
Ghalibaf positioned technological advancement as a critical priority for both nations. “We are in an era of technology, knowledge-based economies, and digital commerce,” he stated. “These technologies are creating a massive transformation in people’s lives, and Islamic countries must not fall behind in leveraging this potential.” He argued that by combining their unique strengths and acting as complementary economies, Iran and Pakistan can secure a more prosperous future for their citizens.
Ambition to Transform Economic Relations
A central theme of the discussions was the current state of trade, which the Iranian Parliament Speaker deemed insufficient. “A trade volume ceiling of around $3 billion is not acceptable for Iran and Pakistan,” Ghalibaf asserted. He pointed out that with Iran’s population of 90 million and Pakistan’s 250 million, the potential for a much broader economic relationship remains largely untapped.
He identified numerous sectors for immediate collaboration, including agriculture, livestock, and essential goods, where Pakistan holds significant opportunities. Conversely, he highlighted Iran’s capacity to meet Pakistan’s agricultural needs, such as supplying urea fertilizer, and its advancements in medicine, nanotechnology, oil, gas, and petrochemicals—achievements he noted were secured despite “the unjust sanctions imposed by America.”
Paving the Way for a New Chapter
To achieve the ambitious $10 billion trade goal, Ghalibaf outlined a clear action plan. He called on both governments to act as facilitators for the private sector, streamlining monetary, banking, and logistical processes to give businesses the confidence to engage. The recent signing of 12 cooperation documents, including one on free trade, was hailed as a “very good beginning.”
Practical measures proposed include promoting a barter trade system to circumvent banking challenges, removing pre-order registrations to facilitate border transactions, and modernizing border markets to operate on a 24/7 mechanized basis. The recent launch of a direct flight between Tehran and Islamabad was also cited as a concrete step towards enhancing connectivity, alongside a focus on developing tourism and improving land and rail transportation.
The Iranian official further suggested the potential for trilateral projects involving China, indicating a broader vision for regional economic integration. This renewed push signals a strong political will from both Tehran and Islamabad to transform their historical ties into a powerful and mutually beneficial economic partnership for the future.