KARACHI: Pakistan’s Commerce Minister Jam Kamal Khan on Friday urged Muslim nations to strengthen economic cooperation amid increasing regional tensions and supply disruptions, stressing that members of the Organization of Islamic Cooperation (OIC) possessed significant economic potential that they could use to their advantage.

Khan was speaking at the closing session of the 42nd session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) of the OIC in Istanbul. The event focused on developing more effective trade financing tools to boost exports among member states.

The Pakistani minister spoke about the regional tensions and supply disruptions triggered by the US-Israel’s war on Iran since February, urging Muslim states to strengthen economic collaboration.

“The commerce minister emphasized that growing geopolitical tensions, supply chain disruptions, financial vulnerabilities and increasing protectionism had made economic cooperation and collective action among Islamic countries more important than ever,” Pakistan’s commerce ministry said.

Khan said OIC countries possessed “significant” economic potential, geographical advantages, human resources and natural endowments that could be transformed into shared prosperity through stronger partnerships and coordinated policies.

He observed that while OIC member states had made considerable progress in sustainable development, technological advancement and economic prosperity over the decades, emerging global challenges required them to work together and develop practical solutions suited to their circumstances.

“Highlighting the outcomes of the session, Jam Kamal Khan said the deliberations had identified important areas for collective action, including intra-OIC trade, transport connectivity, sustainable tourism, agricultural productivity, food security, poverty alleviation and digital transformation,” the commerce ministry said.

The minister stressed the need to strengthen legal, regulatory and supervisory frameworks to facilitate cross-border transactions and improve access to trade financing among Muslim states.

He also called for diversification of trade financing instruments, stronger export credit guarantee mechanisms and innovative financial arrangements tailored to the requirements of exporters and technology-driven enterprises.

Khan urged OIC member states to promote Shariah-compliant trade financing through enhanced institutional capacity, risk-sharing arrangements, Islamic export credit insurance and closer cooperation among Islamic financial institutions.

“He encouraged greater interaction among business communities across OIC countries to unlock new opportunities for trade, investment and joint economic initiatives,” the ministry said.

Pakistan has sought closer economic and defense ties with regional Muslim states, such as Türkiye and Saudi Arabia, since the US-Iran war broke out this year. Pakistan signed a trilateral defense pact, known as the Makkah Joint Defense Agreement, with Riyadh and Ankara, which stipulates that an attack on any of the three states will be considered an attack against them all.