ISLAMABAD: Pakistan’s Investment Minister Qaiser Ahmed Sheikh and Iranian Ambassador Reza Amiri Moghadam on Thursday reaffirmed their commitment to raise bilateral trade to $10 billion through the operationalization of special economic zones (SEZs) at the border region and greater economic engagement, Pakistan’s food ministry said.
Pakistan and Iran signed agreements last year across various fields and economic sectors to take their bilateral trade to $10 billion. Both countries have attempted to forge closer economic and investment ties through border markets and trade links in recent years.
However, they have remained at odds over the years due to instability along their shared, porous border.
Pakistan’s Board of Investment and Iran’s Supreme Council of Free Trade, Industrial and Special Economic Zones have already signed a memorandum of understanding to establish SEZs at the two countries’ shared border region.
“Both sides reaffirmed their commitment to achieving the agreed bilateral trade target of USD 10 billion in the coming years,” the Pakistani food security ministry said about Sheikh’s meeting with Moghadam.
“It was noted that the SEZ initiative, particularly around the Rimdan–Gabd border region, along with previously agreed border markets, will play a pivotal role in improving livelihoods in border areas and boosting cross-border commerce.”
The Iranian envoy stressed the need for a joint visit to finalize and notify the boundaries of the economic zone. The statement said that while Iran has already completed demarcation on its side, Pakistan’s side requires coordination to move forward. Both sides agreed that a joint technical visit would be undertaken as a first step, followed by the development of Terms of Reference (TORs).
Sheikh highlighted the strategic importance of the location, noting that the Rimdan–Gabd area enjoys proximity to key maritime routes and major ports, making it a highly viable hub for trade and investment.
“He further observed that the area offers comparatively better security conditions than other border points, enhancing its attractiveness for investors,” the statement said.
Both discussed the issue of Iranian containers currently stuck at Karachi Port for approximately 100 days, with Moghadam requesting Pakistan’s support for their early release, particularly as some consignments include essential goods such as medicines.
Sheikh assured the Iranian envoy that the Board of Investment would obtain detailed information and coordinate with relevant ministries to resolve the matter on priority.
Both sides expressed concern over declining trade, noting that prior to recent tensions, approximately 700–800 trucks were crossing the border daily, which has now decreased “significantly.”
Separately, Iran’s Commercial Attaché Iran Murad Nemati stressed the need for the two countries to capitalize on their geographical advantages and forge stronger joint ventures to transform bilateral ties into a long-term strategic economic partnership.
These comments from Nemati came during his visit to the Karachi Chamber of Commerce and Industry (KCCI), where he met Pakistani businesspersons. The Iranian envoy noted that Pakistan and Iran both possess unique strategic advantages that can position them as gateways connecting South Asia, West Asia and East Asia.
“He particularly emphasized the importance of strengthening connectivity between Karachi, Gwadar, Bandar Abbas and Chabahar in addition to enhancing infrastructure at border regions to facilitate smoother trade flows,” the KCCI said.
