Pakistan, Iran resolve to strengthen trade cooperation, work for regional peace

Prime Minister Shehbaz Sharif (left) meets Iranian President Masoud Pezeshkian in Tehran, Iran, on December 12, 2025. (Government of Pakistan)
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Updated 21 December 2025
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Pakistan, Iran resolve to strengthen trade cooperation, work for regional peace

  • Pakistan Foreign Minister Ishaq Dar speaks to Iranian counterpart Seyyed Abbas Araghchi
  • Pakistan, Iran have attempted to enhance bilateral trade to $10 billion in recent years

ISLAMABAD: The foreign ministers of Iran and Pakistan vowed on Sunday to strengthen bilateral cooperation in trade, connectivity, various other sectors and work for regional peace, the Pakistani foreign ministry said in a statement.

Pakistan and Iran have attempted to enhance bilateral trade and commerce in recent years. The two neighbors have set up border markets and discussed barter trade to get around banking and currency restrictions.

Sanctions and foreign exchange shortages remain key hurdles for Iran, making barter systems and cross-border markets central to its trade strategy with Pakistan.

Deputy Prime Minister Ishaq Dar, who also serves as Pakistan’s foreign minister, spoke to Iran’s Foreign Minister Seyyed Abbas Araghchi over the phone on Sunday during which the two discussed regional developments. 

“Both leaders reaffirmed their commitment to further strengthening cooperation in trade, connectivity and people-to-people ties, and reiterated their resolve to work closely together for regional peace and development,” the Pakistani foreign office said in a statement. 

Pakistan and Iran have attempted to enhance bilateral trade to $10 billion. However, apart from sanctions and foreign exchange shortages, ties between the two countries remain complicated due to security issues. 

Pakistan and Iran have remained at odds over instability along their shared, porous border that even led to a missile exchange between them in 2024. Both countries, however, were quick to move to ease tensions.

Iranian President Dr. Masoud Pezeshkian visited Pakistan in August this year, during which the two countries signed agreements to enhance bilateral trade to $10 billion by 2028. 

Both countries have also consistently criticized Israel for its war on Gaza and repeated violations of a fragile ceasefire brokered by world powers, including the US. 


Pakistan puts border districts on high alert amid Iran protests — official

Updated 10 min 22 sec ago
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Pakistan puts border districts on high alert amid Iran protests — official

  • The development comes as Iranian authorities try to suppress protests over faltering economy, with over 2,600 killed
  • Militancy in Balochistan has declined following the return of nearly 1 million Afghans, the additional chief secretary says

QUETTA: Pakistan has heightened security along districts bordering Iran as violent protests continue to engulf several Iranian cities, a top official in Pakistan’s southwestern Balochistan province said on Thursday, with authorities stepping up vigilance to guard against potential spillover.

The development comes as Iranian authorities try to suppress protests, which began late last month over the country’s faltering economy and the collapse of its currency, with more than 2,600 killed in weeks of violence in the Islamic republic.

The clampdown on demonstrations, the worst since the country’s 1979 Islamic revolution, has drawn threats from the United States (US) of a military intervention on behalf of the protesters, raising fears of further tensions in an already volatile region.

Pakistan, which shares a 909-kilometer-long border with Iran in its southwest, has said that it is closely monitoring the situation in the neighboring country and advised its citizens to keep essential travel documents with them amid the unrest.

“The federal government is monitoring the situation regarding what is happening in Iran and the provincial government is in touch with the federal government,” Hamza Shafqaat, an additional chief secretary at the Balochistan Home Department, told Arab News in an exclusive interview on Thursday.

“As far as the law and order is concerned in all bordering districts with Iran, we are on high alert and as of now, the situation is very normal and peaceful at the border.”

Asked whether Islamabad had suspended cross-border movement and trade with Iran, Shafqaat said trade was ongoing, but movement of tourists and pilgrims had been stopped.

“There were few students stuck in Iran, they were evacuated, and they reached Gwadar,” he said. “Around 200 students are being shifted to their home districts.”

SITUATION ON PAKISTAN-AFGHANISTAN BORDER

Pakistan’s Balochistan province has long been the site of an insurgency by ethnic Baloch separatists and religiously motivated groups like the Tehreek e Taliban Pakistan (TTP). Besides Iran, the province shares more around 1,000-kilometer porous border with Afghanistan.

Islamabad has frequently accused Afghanistan of allowing its soil for attacks against Pakistan, an allegation denied by Kabul. In Oct., Pakistan and Afghanistan engaged in worst border clashes in decades over a surge in militancy in Pakistan. While the neighbors agreed to a ceasefire in Doha that month, relations between them remain tensed.

Asked about the government’s measures to secure the border with Afghanistan, Shafqaat said militancy in the region had declined following the return of nearly 1 million Afghan nationals as part of a repatriation drive Islamabad announced in late 2023.

“There is news that some of them keep on coming back from one border post or some other areas because we share a porous border and it is very difficult to man every inch of this border,” he said.

“On any intervention from the Afghanistan side, our security agencies which are deputed at the border are taking daily actions.”

LAW AND ORDER CHALLENGE

Balochistan witnessed 167 bomb blasts among over 900 militant attacks in 2025, which killed more than 400 people, according to the provincial government’s annual law and order report. But officials say the law-and-order situation had improved as compared to the previous year.

“More than 720 terrorists were killed in 2025 which is a higher number of operations against terrorists in many decades, while over a hundred terrorists were detained by law enforcement agencies in 90,000-plus security operations in Balochistan,” Shafqaat said.

The provincial government often suspended mobile Internet service in the southwestern province on various occasions last year, aimed at ensuring security in Balochistan.

“With that step, I am sure we were able to secure hundreds of lives,” Shafqaat said, adding it was only suspended in certain areas for less than 25 days last year.

“The Internet service through wireless routers remained open for the people in the entire year, we closed mobile Internet only for people on the roads because the government understands the difficulties of students and business community hence we are trying to reduce the closure of mobile Internet.”