Iran Press/Asia: Economic experts are optimistic about the 8% increase in Iran-Pakistan trade in 2023, predicting even greater growth ahead. This encouraging trend is supported by several strategic actions from both countries. These include frequent high-level visits, an ambitious $10 billion trade target, the development of border markets, the initiation of barter trade mechanisms, and the organization of numerous trade fairs to showcase their products. By the end of March 2025, these efforts could potentially lead to unprecedented trade volumes between the two nations.
Pakistan, with a population of over 240 million, ranks among the largest markets in the region. Its primary exports to Iran encompass agricultural products, textiles, and industrial raw materials. On the other hand, Iran's significant contributions to this trade relationship include petrochemical products and agricultural goods.
The uptick in economic cooperation between Iran and Pakistan can be attributed to a convergence of regional and domestic factors. The ongoing Ukraine-Russia conflict has disrupted global trade routes, prompting traders to look closer to home for stable markets. Simultaneously, Pakistan's economic struggles, coupled with its depleting foreign reserves, have driven a renewed focus on bolstering exports and streamlining trade relations with neighboring Iran.
However, challenges such as high transportation costs, seasonal tariffs, and the lack of banking infrastructure between the two countries have hindered trade development. These issues have particularly impacted sectors like agriculture and food exports.
Iranian customs data reveals that exports to Pakistan are dominated by petrochemical products and industrial goods. However, agricultural and livestock products also hold a significant place in the trade portfolio between the two countries.
Iranian customs officials announced that in April-July of 2024, Pakistan has become Iran’s fourth largest trading partner, following the UAE, Turkey, and Iraq. According to these officials, the trade volume between Iran and Pakistan exceeded one billion dollars during this period.
Among Iran's 15 neighbors, Pakistan stands out as one of the top five countries with the highest purchase of Iranian goods during this period. This trend highlights the continuation of a positive trade balance for Iran in its relations with Pakistan.
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