Iranian Minister Arrives in Islamabad as Pakistan, Iran Gear Up for Historic Trade Agreement

ISLAMABAD - Iranian Minister of Industry, Mines and Trade Mohammad Atabak has arrived in Islamabad as Pakistan and Iran prepare for what could become one of their most significant trade and economic cooperation agreements in years.

🚨🇵🇰🇮🇷 BREAKING

Iranian Minister of Industry, Mines and Trade Mohammad Attabak arrives in Islamabad as Pakistan and Iran prepare for what could become one of their most significant trade and economic cooperation agreements in years. pic.twitter.com/Yjuk6QJomx

- Zard si Gana (@ZardSi) August 3, 2026

Atabak is leading a high-level delegation for the 10th session of the Pakistan-Iran Joint Trade Committee (JTC) , being held in Islamabad from August 3-5 . The meeting is being co-chaired by Pakistan's Commerce Minister Jam Kamal Khan .

$10 Billion Trade Target on the Table

At the JTC meeting, both countries reaffirmed their commitment to expanding bilateral trade to **$10 billion** - a significant increase from the current annual trade volume of approximately $3 billion .

Atabak called Pakistan Iran's "long-term strategic trade partner," expressing Tehran's desire to expand regional trade and logistics cooperation through Karachi and Gwadar ports .

Commerce Minister Jam Kamal Khan underscored the urgency to finalize the Pakistan-Iran Free Trade Agreement (FTA) , calling for the removal of barriers in border logistics and cargo movement .

New Transit Routes Reshaping Regional Trade

The trade push comes as Pakistan has already implemented a new "Transit of Goods Through Pakistan Order 2026," designating six trade corridors linking Gwadar, Karachi, and other Pakistani ports to Iranian border points like Gabd and Taftan .

The shortest route from Gwadar to Iran's Gabd port is just 89 kilometers, reducing transport costs by 45-55% compared to traditional sea routes - a game-changer amid disruptions to maritime trade in the region .

Landmark Agreement Expected

A 16-member Iranian business team representing food, agribusiness, logistics, shipping, transportation, energy, and manufacturing sectors is also attending the JTC .

Officials are expected to finalize a roadmap for the FTA, strengthen customs and banking cooperation, and improve transport connectivity .

Pakistan has also recently permitted exports of 10 food items - including rice, seafood, potatoes, meat, onions, and fruits - to Iran via land routes without mandatory banking instruments .

Broader Strategic Context

The economic push follows Iran's appreciation of Pakistan's mediation efforts in the US-Iran conflict. The Islamabad Memorandum of Understanding (MoU), signed in June 2026, has helped de-escalate tensions and created space for deeper bilateral engagement .