ISLAMABAD: Pakistan and Iran are moving closer to formalizing their long-awaited Free Trade Agreement (FTA), as the final text of the accord has been completed and is now undergoing internal review by Pakistani authorities for formal approval.
The development was revealed during a meeting between Federal Minister for Commerce Jam Kamal Khan and Iranian Ambassador to Pakistan Reza Amiri-Moghaddam, held in Islamabad to discuss ways of strengthening bilateral trade and economic cooperation, according to an official statement.
During the talks, the two sides reviewed ongoing trade initiatives, existing agreements, and new opportunities to further deepen economic integration between the neighboring countries.
Minister Jam Kamal informed the envoy that the text of the Pakistan-Iran FTA, signed earlier in Islamabad, is in its final stages of inter-ministerial review and would soon be presented for official endorsement.
The Iranian ambassador welcomed the progress, noting that flights between Quetta and Zahedan have resumed, facilitating both people-to-people exchanges and trade connectivity. He also shared that Iran has completed rice imports from Pakistan and is now ready to procure animal feed and maize, in line with previously agreed trade commitments covering 400,000 tons of rice, 300,000 tons of meat, 200,000 tons of maize, and 50,000 tons of animal feed.
Minister Jam Kamal extended an invitation to Iranian firms and state-owned organisations to participate in the FoodAg Exhibition, scheduled to be held in Karachi from November 25 to 27, saying that such platforms would enable both sides to explore joint ventures and investments in the agri-food sector.
He further proposed arranging high-level exchanges, including visits by the Chief Minister of Baluchistan and the Governor of Zahedan, to strengthen cross-border trade and improve livelihoods in border areas. The minister also suggested inviting Pakistani ministers from maritime, railways, and communications sectors to Tehran to explore new areas of cooperation.
Highlighting recent progress, the commerce minister noted that positive engagements over the past year had led to stronger trade and economic ties. He appreciated Iran’s recognition of Pakistan’s amendments to the barter trade mechanism, which have simplified business operations.
Both sides reiterated their shared vision to achieve $10 billion in annual bilateral trade by 2028, while expressing satisfaction over the successful 22nd Session of the Pak-Iran Joint Economic Commission, held in Tehran in mid-September.
Mr Jam Kamal also welcomed the reactivation of the Mand-Pishin Joint Border Market in July this year and urged for the swift operationalization of two remaining markets at Chegdi-Kouhak and Gabd-Reemdan. He stressed the need to remove non-tariff barriers through closer cooperation between the National Plant Protection Organization’s (NPPOs) and quarantine agencies of both countries.
The minister said the Ministry of Commerce, in consultation with the FBR and Ministry of Communications, was addressing operational challenges faced by Iranian trucks entering Pakistan.
He also called for the revival of the Pakistan-Iran Joint Business Council to promote business-to-business (B2B) collaboration and support private-sector participation in bilateral trade growth.