With regional economies rattled by the Gulf crisis, Pakistan and Iran are pushing to turn decades of diplomatic warmth into measurable commerce. Their latest bid, a $10 billion trade target, took center stage at the 10th Pak-Iran Joint Trade Committee (JTC) meeting in Islamabad, where both sides pledged to dismantle long-standing logistical hurdles. Main Developments Commerce Minister Jam Kamal Khan co-chaired the two-day session, which runs from August 3-5, alongside Iranian Industry, Mine and Trade Minister Mohammad Atabak. Khan framed the talks as a chance to convert what he called “historic brotherly relations” into a structured economic partnership. Both ministers reviewed the steps already taken since March to ease border trade, including simplified customs procedures and the formalisation of Taftan as a customs station. Khan pushed for a finalised Pak-Iran Free Trade Agreement and urged both governments to clear bottlenecks in border logistics and cargo movement. Read also: 5 trade fronts as Pakistan, Iran convene 10th JTC in Islamabad Joint border markets and an electronic data interchange system could significantly boost trade flows, Khan argued, according to a statement from his ministry. He stressed that the private sector in both countries was ready to expand, but needed a “predictable and favourable” environment from their governments. Atabak called Pakistan Iran’s “long-term strategic trade partner” and voiced Tehran’s interest in expanding logistics cooperation through Karachi and Gwadar ports. He also highlighted electricity trade and regional connectivity as “new avenues of economic opportunity” for both nations. Background The talks come roughly two weeks after Iranian Interior Minister Eskandar Momeni visited Islamabad, where he met Railways Minister Hanif Abbasi and agreed to widen railway cooperation. That discussion included reviving the Islamabad-Tehran-Istanbul freight train service and strengthening cross-border rail links. Since March, Pakistan has moved on multiple fronts to formalise trade with its western neighbour. The government permitted exports of 10 food items—rice, seafood, potatoes, meat, onions, maize, citrus fruits, bananas, tomatoes, and frozen chicken—plus pharmaceuticals and tents to Iran via land routes, without requiring mandatory banking instruments. Islamabad also allowed rice shipments to Central Asian Republics and Azerbaijan through Iranian territory. To manage cross-border flows, a new customs station opened at Jeerak in Panjgur district in March, designated as the fifth crossing point for trade and transit with Iran. That followed the opening of the Kohak Cheedgi crossing in January 2025 and the Gabd Rimdan border point in December 2024. In April, Pakistan’s commerce ministry notified six transit routes for goods moving to Iran via the ports of Gwadar and Karachi. Why It Matters The push for a $10 billion trade volume is not just an economic target—it is a strategic hedge against maritime instability. With the Gulf crisis disrupting sea lanes, land routes through Iran offer Pakistan a critical alternative for food and pharmaceutical exports. Thousands of containers destined for Iran are reportedly awaiting clearance at Pakistani ports, underscoring the urgency of smoother transit systems. Formalising border stations and transit routes helps channel informal trade into the official economy, which benefits both revenue collection and regional stability. For Iran, Pakistan represents a gateway to South Asian markets and a partner in regional logistics, especially through Gwadar and Karachi ports. The FTA, once concluded, could lock in preferential terms that make the $10 billion target achievable rather than aspirational. What's Next Both sides are expected to finalise the Pak-Iran Free Trade Agreement soon, with Atabak expressing optimism about its conclusion. The JTC session is meant to produce a “practical roadmap” for trade connectivity, according to Khan. Upcoming steps likely include implementing the electronic data interchange system and operationalising joint border markets. Railway cooperation, including the ITI freight train revival, will also be a focus in the coming months, alongside the continued rollout of the newly notified transit routes.