Lead

Pakistan and Iran have agreed to further expand trade ties by keeping border crossings open round the clock, improving logistics, and harmonizing customs procedures, according to a statement from the Prime Minister’s Office. The agreement came during a meeting between Prime Minister Shehbaz Sharif and a six-member Iranian delegation led by Iran’s Minister for Industry, Mine and Trade Mohammad Atabak in Islamabad.

Coverage Comparison

Dawn reported the agreement, noting that both sides aim to expand bilateral trade to $10 billion. The meeting also discussed establishing lasting peace in the region and enhancing Pakistan-Iran bilateral relations. The Jerusalem Post focused on Iran’s plan to increase truck trade with Pakistan to 2,000 vehicles per day, framing it as a move to ease the impact of the US blockade of the Strait of Hormuz. It also highlighted Washington’s silence on the trade expansion and Pakistan’s role as a mediator in US-Iran ceasefire talks.

Dawn also reported on the 10th session of the Pak-Iran Joint Trade Committee (JTC) held in Islamabad from August 3-5, co-chaired by Atabak and Pakistan’s Commerce Minister Jam Kamal Khan. Iran expressed interest in expanding trade and economic cooperation through the ports of Karachi and Gwadar, and both sides discussed operationalising joint border markets and finalising the Pak-Iran Free Trade Agreement.

Key Claims

  • $10 billion trade target: Both countries reiterated their resolve to expand bilateral trade to $10 billion, with Commerce Minister Jam Kamal Khan calling for transforming “historic brotherly relations” into a robust economic partnership.
  • Round-the-clock border crossings: The agreement includes keeping border crossings open 24 hours a day, improving logistics, and harmonising customs procedures.
  • Customs and transit measures: Since March, both countries have rolled out measures to facilitate border trade, including easing customs procedures, formalising Taftan as a customs station, notifying six transit routes for goods via Pakistani sea ports, and establishing a new customs station at Jeerak in Panjgur district.
  • Exemption from banking instruments: Pakistan permitted exporters to ship food and pharmaceutical products to Iran via land routes without mandatory banking instruments.
  • Truck trade expansion: Iran plans to increase truck trade with Pakistan to 2,000 vehicles per day, up from the current volume of about 20% of that target.
  • Port cooperation: Iran expressed interest in expanding trade and economic cooperation through the ports of Karachi and Gwadar.

Perspectives

Pakistani Government

Prime Minister Shehbaz Sharif said Pakistan highly values its relations with Iran and will continue its sincere efforts for peace in the region. He expressed hope that sustained efforts would enable both countries to achieve the $10 billion trade target.

Iranian Government

Iranian Minister Mohammad Atabak called Pakistan Iran’s “long-term strategic trade partner” and expressed Tehran’s desire to expand regional trade and logistics cooperation through Karachi and Gwadar ports.

US-Iran Conflict Context

Jerusalem Post noted that the expansion of trade with Pakistan is seen as a “genuine reprieve” from the economic fallout of the Strait of Hormuz blockade, but analyst Roger Macmillan said it offers Iran less breathing room than headlines might suggest.