Islamabad, Aug 3 (PTI) Pakistan and Iran on Sunday agreed to enhance bilateral trade volume to USD 10 billion from the current USD 3 billion annually as they signed 12 agreements and MoUs after talks between Prime Minister Shehbaz Sharif and Iranian President Masoud Pezeshkian.

Prime Minister Sharif announced the new bilateral trade target while addressing a joint press meeting with President Pezeshkian after their talks during which they also agreed to strengthen cooperation to combat militancy along their shared border, according to the state-run Associated Press of Pakistan (APP).

The agreement to enhance bilateral trade volume to USD 10 billion was reached earlier in the morning during a meeting between Commerce Minister Jam Kamal Khan and Iranian Minister for Industry, Mines and Trade Mohammad Atabak.

Sharif also said that Iran has the right to the peaceful use of nuclear energy, which had been at the heart of the current conflict with Israel.

“Pakistan stands with Iran for the acquisition of peaceful nuclear power,” Sharif said as he condemned recent Israeli attacks against Iran and appreciated Tehran for its forceful defence of the country.

Pakistan and Iran exchanged 12 agreements and MoUs in the presence of Sharif and Pezeshkian. These included cooperation in trade, agriculture, science, technology and innovation, information and communications, and maritime safety, among other issues, the APP said.

“Prime Minister Sharif on Sunday said that the leadership of Pakistan and Iran were keen to enhance the bilateral trade volume to the target of USD 10 billion as soon as possible,” the APP said.

The two leaders also discussed issues related to terrorism and agreed to strengthen cooperation to combat militancy along their shared border, it said.

On his part, Pezeshkian said that the MoUs signed included one about finalisation of the free trade agreement at the earliest between the two sides.

President Pezeshkian expressed satisfaction that “serious and sincere efforts were being initiated by both sides for cooperation in diverse fields, and to take their current trade volume of USD 3 billion to the projected target of USD 10 billion,” the APP said.

President Pezeshkian landed in Lahore on Saturday afternoon and flew to the capital later in the evening.

Meanwhile, after Khan's meeting with Atabak, a statement by Pakistan's Commerce Ministry said the high-level discussion between the two leaders marked a renewed commitment from both sides to accelerate trade, remove border bottlenecks, and build trust-based partnerships across priority sectors.

The meeting emphasized maximising the potential of neighbourhood trade, with Khan highlighting how ASEAN countries have benefited enormously by trading within their region.

“Geography is an advantage. Pakistan and Iran must utilise this discount of distance. If we don’t, we lose both time and cost benefits,” he stated.

The Pakistani minister suggested organising targetted trade delegations that include representatives from federal and provincial chambers of commerce, enabling focused discussions on market access and regulatory facilitation, according to the statement.

The ministers also expressed a shared commitment to increasing the use of existing trade corridors and border facilities.

Atabak also highlighted ongoing discussions about increasing Pakistani exports to Iran and encouraged swift follow-up on newly signed agreements.

Khan said that beyond bilateral gains, such connectivity could expand to Turkey, Central Asia, Russia, and even parts of West Asia, creating an economic bloc of substantial power and resilience.

Atabak supported the idea of holding a dedicated B2B day during every high-level visit and offered to bring Iranian business groups to Pakistan for in-depth meetings, the statement said.

Both ministers agreed on the importance of identifying specific sectors such as agriculture, livestock, services, energy, and cross-border logistics for future collaboration, the statement said.

“With high-level political alignment and mutual trust, Pakistan and Iran appear poised to enter a new phase of strategic economic partnership that could reshape regional trade dynamics,” it added.

Centre for Strategic and Contemporary Research, a policy think tank in Islamabad, said the total volume of formal bilateral trade between Pakistan and Iran reached around USD 2.3 billion in 2022, with the trade balance largely tilted towards Iran.

“Iranian exports to Pakistan stood at USD 1.488 billion, mainly petroleum gas, electricity and petroleum coke. Pakistan’s exports to Iran amounted to USD 842.8 million, primarily comprising Iron pipes, medical instruments and utility meters,” it said in a September 2024 brief titled 'Pakistan and Iran’s Struggle for Economic Cooperation'. PTI SH NPK ZH NPK NPK

Bilateral trade target increased with MoUs to finalise a free trade agreement and deepen economic and border-security cooperation. Agreement to increase the bilateral trade target and execution of twelve MoUs set a framework to expand economic exchange and coordinate border security. The instruments include an MoU to finalise a free trade agreement, commitments to remove border bottlenecks, maximise existing trade corridors and facilities, organise targeted B2B days and trade delegations, and focus on priority sectors such as agriculture, livestock, services, energy and cross-border logistics to operationalise the signed measures.