Pakistan and Iran sign five-year plan to achieve $5 billion trade target

Pakistan and Iran strengthened their economic ties with the announcement of a five-year trade cooperation plan, targeting $5 billion in bilateral trade.

The plan was unveiled during Iranian Foreign Minister Hossein Amir Abdollahian’s first bilateral visit to Pakistan, upon the invitation of Pakistani Foreign Minister Bilawal Bhutto-Zardari.

At a press conference in Islamabad, FM Bilawal expressed optimism about the plan’s potential to enhance economic partnership and address barriers in trade between the two nations. The key goals include finalizing a free trade agreement and establishing closer links between the private sectors of both countries.

“We consider this as a first step towards strengthening our multidimensional cooperation especially in the economic domain. Today, countless schools, hospitals and households in Gwadar are run on electricity being provided by Iran,” he said.

Abdollahian, in his remarks, affirmed the commitment of both countries to boost bilateral trade and disclosed plans to establish a special economic free trade region along their common border points.

“We have to find lasting solutions for existing banking and financial problems. We have reached an agreement on opening up new market points on border and special economic free trade region at border points,” he said.

List of Bilateral Projects

FM Bilawal Bhutto announced the following bilateral projects to strengthen the alliance between the two countries in the coming months and years:

  • The Five-Year Trade Cooperation Plan between Pakistan and Iran (2023-28), which inter alia, sets a bilateral trade target of US$ 5 billion; prioritizes removing impediments on bilateral trade, finalization of the FTA, and establishment of institutional linkages between our respective private sectors;
  • Protocol on Bilateral Economic Consultations, encompassing the rich and in-depth sectoral discussions held between our sides;
  • Protocol on the 3rd meeting of the Joint Investment Committee (JIC) between Pakistan and Iran, on issue of bilateral investments.
  • Humanitarian issues concerning prisoners and fishermen in each other’s jails were also addressed between the two countries.

In addition to economic matters, the two ministers also discussed repatriating sentenced prisoners and setting fishermen from both countries free, while waiving any imposed fines. They further agreed to cooperate in countering Islamophobia and anti-Muslim hatred, particularly considering recent unfortunate events in Europe.

The meeting also addressed the human rights situation in India-occupied Kashmir, with Pakistan thanking Iran for its consistent support for the cause of the Kashmiri people.

The issue of Afghanistan was not left untouched during the talks. Both nations pledged to actively engage with Afghanistan to promote peace and stability and ensure the well-being of the Afghan population. Additionally, Abdollahian stressed the importance of completing the Pakistan-Iran gas pipeline, highlighting its potential benefits for both countries.

The visit culminated with the signing of memoranda of understanding (MOUs) between Pakistan and Iran in various sectors. Both leaders planted a Pine tree sapling on the premises of the Ministry of Foreign Affairs, symbolizing their commitment to nurturing a strong and sustainable relationship.


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