Islamabad says Iran to prioritize Pakistani rice, mango and meat exports under ‘landmark’ understanding

In this picture taken on March 31, 2021 workers fill a sack with rice at the Al-Barkat Rice Mills on the outskirts of Lahore. (AFP/ file)
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Updated 18 August 2025
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Islamabad says Iran to prioritize Pakistani rice, mango and meat exports under ‘landmark’ understanding

  • The development comes more than a week after Pakistan and Iran signed agreements aimed at raising bilateral trade to $10 billion
  • The two countries have attempted to forge closer economic and investment ties through border markets and trade links in recent years

ISLAMABAD: Iran will prioritize Pakistan’s rice, meat, mango and other exports as part of a “landmark” trade understanding reached between the two countries in Tehran, the Pakistani government said on Monday.

The statement came after a high-level ministerial meeting between both sides on food security and agricultural cooperation. National Food Security Minister Rana Tanveer Hussain led the Pakistani side. The meeting was co-chaired by his Iranian counterpart, Mr. Gholamreza Nourozi, and attended by senior representatives of key ministries, research institutions, and trade authorities from both countries.

Both sides reached an agreement for Iran to source a major portion of its rice imports from Pakistan for both government and private sector procurement, while the Iranian side assured of addressing longstanding challenges faced by Pakistani fruit exporters, particularly delays in issuance of import permits and foreign exchange allocations in Iran, according to Pakistan’s Press Information Department (PID).

“With these measures in place, exports of Pakistani mangoes to Iran are set to rise substantially,” the PID said, adding that the discussion also focused on Pakistan’s livestock and meat sector. “Iran agreed to focus on Pakistan as a principal supplier and to ensure that around 60 percent of its meat procurements are sourced from Pakistan.”

Similarly, Iran agreed to import large volumes of maize from Pakistan, with a commitment to resolve technical and procedural issues on priority and within the shortest possible time, according to the PID.

Recognizing the need for science-driven solutions in agriculture, both sides agreed to enhance cooperation between the Pakistan Agricultural Research Council (PARC) and Iranian research institutions.

“This collaboration will cover key areas of mutual advantage, including crop research, livestock breeding, water management, and innovation for farmers’ benefit,” the PID said.

Both sides reached a consensus on a wide range of facilitation measures aimed at easing agricultural trade, including faster customs clearance, establishment of warehouses and cold chain systems, and improvements in border

infrastructure to ensure perishable commodities reach markets efficiently and in prime quality.

“To ensure that these historic decisions are implemented effectively, a Joint Committee on Agricultural Cooperation was formally established,” the PID said. “The Committee will meet every six months to review progress, resolve emerging issues, and maintain the momentum of cooperation.”

The development comes more than a week after Pakistan and Iran signed agreements in the fields of politics, economy, culture and other vital sectors during Iranian President Dr. Masoud Pezeshkian’s visit to Pakistan, aimed at raising their bilateral trade to $10 billion.

Pakistan and Iran, which have remained at odds over instability along their porous border, have attempted to forge closer economic and investment ties through border markets and trade links in recent years.

“My deep belief is that we can easily, in a short time, increase the volume of our trade relations from the current $3 billion to the projected goal of $10 billion,” Pezeshkian told reporters during a joint press conference with Prime Minister Shehbaz Sharif and high-level delegations from both countries in attendance.

Both countries also discussed militancy along their shared border and exchanged 12 agreements and memorandums of understanding (MoUs) for cooperation in science, technology and innovation, cooperation in information and communications technology, exchange programs for culture, art, tourism, youth, mass media and exports, cooperation in meteorology, climatology, tourism cooperation and other fields.


Pakistan PM orders accelerated privatization of power sector to tackle losses

Updated 15 December 2025
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Pakistan PM orders accelerated privatization of power sector to tackle losses

  • Tenders to be issued for privatization of three major electricity distribution firms, PMO says
  • Sharif says Pakistan to develop battery energy storage through public-private partnerships

ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.

Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain. 

Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery. 

“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.

The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.

In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.

Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.

State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.