Iran on Tuesday expressed interest in expanding trade and economic cooperation with Pakistan through the ports of Karachi and Gwadar, as the two neighbouring countries sought to deepen bilateral commercial ties during a high-level meeting in Islamabad, state-run Radio Pakistan reported.

The commitment came during the 10th session of the Pakistan-Iran Joint Trade Committee, co-chaired by Iranian Minister of Industry, Mine and Trade Mohammad Atabak and Pakistan’s Commerce Minister Jam Kamal Khan.

Atabak said Iran attached the highest priority to expanding comprehensive cooperation with Pakistan, describing it as a brotherly country.

He said negotiations on a Pakistan-Iran Free Trade Agreement were progressing well and expressed confidence they would be concluded successfully in the near future.

Meanwhile, Jam Kamal said operationalising joint border markets was essential to strengthening local livelihoods and promoting cross-border commerce.

He added that the private sectors of both countries had confidence in one another and were ready to expand trade, noting that it was the responsibility of both governments to provide a seamless, structured and predictable business environment.

The commerce minister also stressed the need to finalise practical roadmaps to elevate the economic partnership between Pakistan and Iran to a new level, Radio Pakistan reported.

Read: Pakistan-Iran trade revival faces hurdles

Pakistan and Iran have been working to deepen economic cooperation since the 22nd session of the Pakistan-Iran Joint Economic Commission held in Tehran last year. During the meeting, both sides reaffirmed their commitment to raising bilateral trade to $10 billion, agreed to remove trade barriers, operationalise border markets and expand cooperation in sectors including energy, transport, investment and agriculture.

The two countries also signed a comprehensive protocol outlining a roadmap for strengthening economic ties.

Pakistan and Iran enjoyed robust trade relations before sanctions on Tehran intensified more than a decade ago, with bilateral trade surpassing $1.2 billion in FY10. However, tightening restrictions, including banking and financial sanctions, severely curtailed formal trade flows. Both countries could revive trade supported by greater economic engagement and the planned development of border Special Economic Zones, according to a report by Topline Securities.

Before sanctions disrupted trade, Pakistan exported rice, meat, paper, textiles, fruits and surgical goods to Iran, while importing chemicals, plastics, oil, iron and steel products.

The Iran-Pakistan gas pipeline would deliver up to 750 million cubic feet of natural gas per day, addressing Pakistan’s chronic energy deficit and driving industrial growth, KTrade analysts said. However, Topline cautioned that the long-delayed pipeline is unlikely to see immediate progress. Any revival would require not only the easing of sanctions but also a renegotiation of pricing and contractual terms to make it commercially viable for Pakistan.