On August 3, 2025, Pakistan and Iran reached an agreement to increase their annual bilateral trade volume to $8 billion, a substantial rise from the $2.8 billion recorded in the fiscal year ending June 2025.
During a meeting in Islamabad, Pakistan’s Minister for Commerce, Jam Kamal Khan, and Iran’s Minister for Industry, Mine, and Trade, Mohammad Atabak, pledged to strengthen economic cooperation and expedite trade initiatives.
The ministers emphasised the importance of leveraging geographical proximity to enhance economic collaboration, particularly in agriculture, energy, livestock, logistics, and IT services. They underscored the necessity of optimising border facilities and trade corridors to facilitate smoother exchanges. Additionally, both sides agreed to expedite the upcoming session of the Pakistan-Iran Joint Economic Commission to advance these initiatives.
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Iran pledges to increase trade with Pakistan to $10 Billion, rejecting Indian trade proposal. pic.twitter.com/8VHiHvRvjC
— Tactical Tribune (@TacticalTribun) August 2, 2025The meeting highlighted the increasing trust between the business communities, with plans for a new series of B2B meetings aimed at fostering collaboration. Jam Kamal characterised the relationship between Pakistan and Iran as a symbol of trade, culture, and brotherhood, emphasising that strong economic ties are essential for strengthening these fraternal bonds.
This agreement supports the efforts of both nations to improve regional economic integration. The ambitious $8 billion target demonstrates a mutual commitment to enhancing trade opportunities and fostering cross-border cooperation. This initiative has the potential to stimulate investment and create jobs, benefiting both economies in the face of global challenges.
