ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar presided over a meeting to discuss economic and trade cooperation with Iran, the foreign office said on Friday, as the neighboring countries seek to expand ties.

The development took place during an inter-ministerial meeting on Pakistan-Iran bilateral relations chaired by Dar in Islamabad. Pakistan and Iran have been working to stabilize ties following a period of strained security relations.

Both countries have been working to enhance bilateral trade, setting up border markets and exploring barter trade to circumvent banking and currency restrictions. Sanctions and foreign exchange shortages remain key hurdles for Iran, making these alternative systems central to its trade strategy with Pakistan.

“The meeting reviewed ongoing cooperation across a range of sectors and discussed ways to further enhance economic and trade ties,” the foreign office said in a statement.

“The DPM/FM reaffirmed Pakistan’s commitment to deepening engagement with Iran in key priority areas.”

In December, the foreign ministers of Iran and Pakistan vowed to strengthen bilateral cooperation in trade and connectivity while working for regional peace.

Iranian President Dr. Masoud Pezeshkian also visited Pakistan in August, during which both countries signed agreements to increase bilateral trade to $10 billion by 2028.