TEHRAN – Iran and Pakistan signed a joint statement pledging to expand cooperation in agriculture, trade and food security, with officials setting a goal to boost bilateral agricultural trade to $3.0 billion within two years.

Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh said current exchanges stand at around $1.4 billion, but the two countries have complementary strengths that can be used to secure each other’s needs across different seasons.

He noted that Iran will expand exports of dairy products, nuts, fruits and vegetables to Pakistan, while Islamabad will supply a portion of Iran’s corn and rice demand and provide at least 60 percent of its meat imports under the new plan.

Nouri said the two sides agreed to strengthen cooperation in research on climate change and food security, and to set up a joint agricultural committee that will meet every six months to monitor progress and resolve bottlenecks.

“The construction sector may drive the economy, but agriculture drives food security,” he said, stressing that regional collaboration is key in adapting to global changes.

Rana Tanveer Hussain, Pakistan’s Federal Minister for Industries and Production and National Food Security and Research, described the Tehran meeting as “fruitful,” highlighting agreements on boosting agricultural trade, scientific collaboration and joint efforts to address climate change.

He said increasing imports and exports between the two neighbors would be more economical than relying on distant suppliers such as Brazil, particularly in rice and livestock.

Officials emphasized that trade would involve both the public and private sectors, with mechanisms such as barter and tailored trade facilities under discussion.

They said the initiative not only aimed at ensuring mutual food security but could also contribute to regional stability.

The Iran–Pakistan Business Conference opened in Islamabad on August 3 with Iranian President Masoud Pezeshkian in attendance, alongside a high-ranking delegation. The event was hosted by Pakistan’s Deputy Prime Minister and Foreign Minister, Senator Mohammad Ishaq Dar.

Upon his arrival at the conference venue, Pezeshkian was welcomed by Senator Dar. The gathering brought together numerous business leaders, officials from chambers of commerce, and representatives of major Pakistani investment firms.

In his opening remarks, Pakistan’s Commerce Minister Jam Kamal Khan welcomed the finalization of a draft Free Trade Agreement between the two countries and said both sides are committed to resolving tariff-related issues and enhancing border infrastructure.

He announced that the next session of the Iran–Pakistan Joint Economic Commission will be held in Tehran next month and highlighted the activation of the Pishin–Mand border market as a joint commitment aimed at boosting bilateral trade. He also revealed plans to open a new border crossing at Chadgi–Kouhak.

Iran’s Minister of Industry, Mining and Trade Mohammad Atabak, also addressed the conference, expressing appreciation for Pakistan’s support of Iran during Israel’s recent 12-day offensive, which he said had deeply resonated with the Iranian public.

Atabak noted that while trade volumes between the two countries had increased last year, implementation of current agreements will require expansion of land terminals, improvement of rail connectivity, and enhanced port cooperation.

Senator Dar emphasized the close ties between Iran and Pakistan under the framework of the Economic Cooperation Organization (ECO), and invited Iranian investors to explore opportunities in Pakistan, citing broad economic reforms and the creation of a special investment facilitation council.

Referring to his recent talks with Iranian Foreign Minister Seyed Abbas Araghchi, Dar said both countries are determined to strengthen cooperation in customs and border infrastructure development.

Iran and Pakistan have been striving to expand economic cooperation despite longstanding infrastructure bottlenecks and geopolitical challenges. Both nations are part of the ECO bloc and share strategic interests in regional trade connectivity, especially through initiatives like the Pishin–Mand border market and the INSTC corridor.

In the same day, Reza Masrour, Secretary of Iranian Free Trade, Industrial and Special Economic Zones High Council, who had also traveled to Pakistan, said Iran and Pakistan are exploring joint agricultural ventures and transport corridor integration as part of efforts to boost bilateral trade, including plans for cross-border rice cultivation and connecting Pakistan’s China-backed economic corridor to Iran.

He proposed several initiatives in a meeting with Pakistani Commerce Minister Jam Kamal Khan, held on the sidelines of President Masoud Pezeshkian’s official trip to Pakistan.

Among the key proposals were joint paddy farming in Pakistan and processing the rice in Iran’s Chabahar Free Zone, as a way to address Iran’s severe water shortages while expanding agricultural cooperation.

Masrour also called for multi-entry business visas, the establishment of a joint free zone, and linking the China–Pakistan Economic Corridor (CPEC) through Iran to Russia and Europe via the International North–South Transit Corridor (INSTC).

“These ideas reflect our neighborhood-focused policy, and the potential to unlock joint production and significantly expand trade,” Masrour said, emphasizing the shared cultural and historical ties between the two countries.

Pakistan’s commerce minister welcomed the proposals and said their implementation could substantially boost the current trade volume, which he estimated at around $3.0 billion.

As stated by Hamidreza Karbalaei Esmaeili, the deputy for the Indian Subcontinent at Iran’s Trade Promotion Organization (TPO), Iran enjoys a trade surplus with Pakistan, exporting goods at 3.5 times the volume of its imports from the neighboring country.

Karbalaei Esmaeili shared the figures ahead of President Masoud Pezeshkian’s official visit to Islamabad on August 3, his first bilateral foreign trip since Israel’s 12-day military campaign against Iran. The visit, taking place under ongoing regional uncertainty, is seen by analysts as both a symbolic and strategic move tied to post-conflict diplomacy and regional stability.

“Trade between Tehran and Islamabad is on an upward trajectory,” Karbalaei Esmaeili said in an interview with IRNA. He noted that bilateral trade increased by 13.6 percent in the Iranian year 1403 (March 2024–March 2025) compared to the previous year, reaching a total of $3.129 billion.

Iran exported around $2.423 billion worth of goods to Pakistan during the period, while imports from Pakistan stood at $706 million. The bulk of Iran’s exports included petroleum products, powdered milk, and dates, while major imports from Pakistan were rice, oilseeds, and various meat products.

Despite the positive trade balance, figures for the first quarter of the current Iranian year show a decline, reflecting regional instability. Iran’s exports to Pakistan from March to June 2025 totaled $420 million — a 20 percent drop compared to the same period last year — while imports reached $174 million, down by 4.0 percent.

The TPO official attributed the slowdown to regional conditions but emphasized the need to accelerate efforts to boost trade infrastructure and finalize long-pending trade agreements.

“Free trade between Iran and Pakistan technically began in 2016, but progress has been slow,” he said. “We hope upcoming agreements will fulfill this decade-long expectation and unlock significant growth.”

Karbalaei Esmaeili stressed that enhancing logistical capabilities, customs cooperation, and transport infrastructure would be critical to sustaining long-term trade growth between the two countries.

EF/MA