Pakistan & Iran Push for Free Trade Agreement to Boost Agriculture & Exports

Pakistan and Iran to Boost Agricultural Trade to $3 Billion, Eye Free Trade Agreement

ISLAMABAD: Pakistan and Iran have agreed to significantly expand their agricultural trade, setting a target of $3 billion within the next two years. The decision came during a high-level ministerial visit to Tehran, where both countries signed a joint communique to strengthen cooperation in food security and agricultural development.

The Pakistani delegation, led by Federal Minister for National Food Security and Research, Rana Tanveer Hussain, successfully negotiated key agreements with Iranian officials. Among the major breakthroughs was Iran’s commitment to import a large share of its rice needs directly from Pakistan. This arrangement is expected to provide Pakistani rice exporters with a stable and reliable market.

According to the Ministry of National Food Security and Research, Minister Hussain also obtained assurances from Tehran to resolve long-standing obstacles in mango exports, including delays in the issuance of import permits and problems linked to foreign exchange allocations.

Expanding Bilateral Trade Opportunities

Iran’s Minister for Agriculture, Gholamreza Nouri Ghezeljeh, highlighted that current agricultural trade between the two neighbors stands at $1.4 billion. However, he emphasized that both countries have complementary agricultural strengths that can be used to meet each other’s seasonal needs.

Under the new framework:

Pakistan will supply corn, rice, and up to 60% of Iran’s meat imports.

Iran will expand its exports of dairy products, fruits, nuts, and vegetables to Pakistan.

Both sides also agreed to deepen cooperation in research on climate change and food security. For this purpose, a Joint Agriculture Committee will be established, meeting every six months to review progress and address trade challenges.

Removing Trade Barriers

The Pakistani minister secured agreements on several facilitation measures to smoothen agricultural trade flows. These include:

Faster customs clearance procedures

Development of warehouses and cold chain facilities

Upgrades to border infrastructure to ensure timely delivery of perishable goods

These initiatives are designed to improve trade efficiency, reduce wastage, and guarantee that agricultural exports from both sides reach markets in top quality.

Free Trade Agreement in Focus

Both countries reaffirmed their determination to move forward with a long-term Free Trade Agreement (FTA). Officials noted that the FTA would serve as a framework for scaling up bilateral trade, particularly in the agriculture sector.

The next round of the Iran–Pakistan Joint Economic Commission is scheduled to take place in Tehran next month, where officials are expected to further discuss the FTA and additional measures for trade expansion.