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Cabinet officials

Pakistan and Iran Commit to Boosting Bilateral Trade to $10 Billion by 2028

Strategic Insights

— 1 min read

Pakistan's Federal Minister for Commerce, Jam Kamal Khan, has reaffirmed the country's commitment to expanding trade and economic relations with Iran, with the goal of reaching $10 billion in bilateral trade by 2028. This announcement was made during the Pakistan-Iran Business Forum in Islamabad, which was attended by high-level Iranian and Pakistani officials, including Iranian President Dr. Masoud Pezeshkian and Pakistan's Deputy Prime Minister Ishaq Dar. The event highlighted the strong historical, cultural, and geographic ties between the two neighboring countries, as well as the significant untapped potential in sectors such as minerals, agriculture, and energy.

Key Takeaways:

  • The Pakistan-Iran Free Trade Agreement (FTA) has been finalized, providing a structured framework for expanding trade between the two countries.
  • The barter trade mechanism will be implemented to address currency and payment-related constraints.
  • The removal of non-tariff barriers, enhanced customs coordination, improved transport connectivity, and border infrastructure development will be prioritized to facilitate trade.
  • Pakistani Minister Jam Kamal Khan invited Iranian businesses to explore investment opportunities in the country's minerals, agriculture, and energy sectors.
  • The Government of Pakistan will facilitate trade through policy reforms and private-sector engagement.
  • The Pakistan-Iran Joint Economic Commission will be expedited to resolve trade issues and unlock new areas of cooperation.

Statistics:

  • $10 billion: Target for bilateral trade between Pakistan and Iran by 2028.
  • 2 joint border markets: Already operationalized, with the Mand-Pishin Joint Border Market reactivated on July 30, 2023.
  • 2 more joint border markets: To be operationalized at Chaghi-Kouhak and Gabd-Reemdan.
  • $10 billion: Potential for untapped investment opportunities in Pakistan's minerals, agriculture, and energy sectors.

Sources:

  • [Pakistan's Express Tribune, July 30, 2023]
  • [Dawn News, July 31, 2023]
  • [Pakistan Daily, August 1, 2023]
  • [Radio Pakistan, July 31, 2023]
  • [Pakistan-Iran Joint Economic Commission, July 30, 2023]

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