Pakistan, Iraq eye increased trade, religious tourism through ferry service agreement

Pakistan Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry (2L) gestures during a meeting with Iraq’s Deputy Head of Mission Abdulqadir Sulyman Alhimiri (3R) in Islamabad on August 6, 2025. (Handout/Ministry)
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Updated 07 August 2025
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Pakistan, Iraq eye increased trade, religious tourism through ferry service agreement

  • Pakistan signs a memorandum of understanding with Iraq for ferry service between Umm Qasr, Gwadar port cities
  • Minister proposes expanding goods trade by increasing Pakistani exports of medicines, meat and oil imports from Iraq

KARACHI: Pakistan and Iraq have agreed to strengthen their maritime cooperation by exploring new sea routes after signing a memorandum of understanding (MoU) to launch a ferry service between the port cities of Umm Qasr and Gwadar, Pakistan’s maritime affairs ministry said this week.

Islamabad this week granted its first-ever ferry service license to an international operator, Sea Keepers, for routes connecting Pakistan with Iran and Gulf Cooperation Council (GCC) countries. Pakistan’s Maritime Affairs Minister Junaid Anwar Chaudhry said the move would boost regional connectivity, religious tourism and economic activity via sea routes.

The agreement to launch the ferry service between Umm Qasr and Gwadar was reached in a meeting between Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, and a three-member delegation from the Iraqi Embassy in Islamabad, led by its deputy head of mission, Abdulqadir Sulyman Alhimiri.

“Welcoming the initiative, Minister Junaid Anwar Chaudhry described it as ‘a new chapter’ in bilateral relations, emphasizing that maritime passenger and cargo links could build on expanding economic ties and religious travel between the two countries,” Pakistan’s maritime affairs ministry said in a statement on Wednesday.

Chaudhry highlighted that Islamabad can meet Baghdad’s potassium sulphate needs through the ferry service, noting that a manufacturing facility is present in the southwestern Gwadar Free Zone.

“The ferry connection can leverage our shared cultural and religious bonds while unlocking new business opportunities,” the minister said.

He underscored the potential for increased port activity and expansion of the supply chain under Pakistan’s blue economy strategy.

The ministry said last year, over 88,000 Pakistani pilgrims visited Iraq to observe the Ashura religious occasion.

Chaudhry informed the Iraqi delegation that Pakistan was also working to set up ferry routes with Iran and GCC countries.

He said similar arrangements with Iraq could complement these plans, fostering a regional maritime network that meets both economic and strategic goals.

“The minister proposed expanding goods trade by boosting Pakistani exports of medicines, meat and rice to Iraq while increasing Iraqi oil imports into Pakistan, which could help elevate bilateral trade well beyond current levels,” the ministry said.

Alhimiri expressed “strong support” for the minister’s proposals, calling the maritime sector a “key enabler” for future collaboration, the Pakistani ministry said.

Chaudhry said the proposed ferry link would serve as a vital corridor to access broader Asian markets for Iraq, reduce transportation costs, improve logistics, and significantly boost bilateral trade between the two countries.


US says trade with Pakistan could top $8 billion in 2025

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US says trade with Pakistan could top $8 billion in 2025

  • US chargé d’affaires links rising trade to deeper economic engagement with Pakistan
  • Visit comes amid broader effort by Islamabad and Washington to improve bilateral ties 

ISLAMABAD: Trade between the United States and Pakistan is projected to exceed $8 billion in 2025, the US Embassy said on Tuesday, as Washington signaled confidence in Pakistan’s export base and economic potential during a high-profile visit to the industrial city of Sialkot.

The projection was highlighted by US Chargé d’Affaires Natalie A. Baker during meetings with Pakistani exporters and business leaders, underlining the importance Washington places on trade, investment and supply-chain cooperation as the two countries seek to stabilize and expand their economic relationship.

“Highlighting the growth in trade between the United States and Pakistan, which was projected to reach over $8 billion in 2025, Baker said, ‘Expanding trade reflects a strong foundation that highlights the positive impact of US economic engagement in Pakistan and globally. The United States and Pakistan are pursuing a fair and balanced trade relationship that creates prosperity for both our nations’,” the US embassy said in a statement.

The envoy said the United States had been Pakistan’s largest export market and a leading investor, presenting significant opportunities for expanded trade and shared prosperity. 

“The United States remains deeply invested in Pakistan and its people,” Baker said, “building on a partnership that dates back to Pakistan’s independence and continues to grow through trade, innovation, education, and cultural exchange.”

The visit comes amid a broader effort by Islamabad and Washington to improve bilateral ties under US President Donald Trump’s second term, after years of uneven engagement. Since mid-2025, the two sides have stepped up diplomatic contacts, including meetings between Prime Minister Shehbaz Sharif, Pakistan’s military leadership and US officials, alongside discussions on trade, minerals, security cooperation and regional stability.

Pakistan has also sought to re-energize economic diplomacy with Washington as it works to boost exports, attract foreign investment and stabilize its economy under an IMF-backed reform program. 

In July 2025, the two countries agreed to a bilateral trade deal that included reciprocal tariff reductions and frameworks for US investment in Pakistan’s energy and mineral sectors, a step Islamabad has hailed as opening new avenues for economic collaboration.

During her visit, Baker toured leading exporters including Forward Sports, First American Corporation (FAC) and CA Sports, companies that are deeply embedded in global supply chains. The embassy said nearly 70 percent of FAC’s exports go to the United States, illustrating sustained US consumer demand for Pakistani-made goods.

Baker also visited Sialkot International Airport and met with the leadership of AirSial, highlighting private-sector-led infrastructure and logistics as key to Pakistan’s export growth.