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They saw significant activity in the southern and western Asian areas in the months of May and June 2025. On May 7, India invaded Pakistan and was repelled. Iran supported Pakistan in the conflict. The Iranian Foreign Minister visited both Pakistan and India to calm the situation. A ceasefire implemented on May 10 [lease verify this].
On June 13, Israel made a surprising attack on key military and nuclear facilities in Iran. Iran responded with missile launches. Pakistan extended diplomatic support for Iran and resolutions condemning Israeli aggression in both the Houses of Parliament were approved.
There were reports that when the US administration was consulted on the matter, Pakistan advised the United States to end the dispute. Pakistan’s election and measures were abolished on the Iranian people or their representatives. Along with the streets, the slogans of “thanks, Pakistan” were raised in the Iranian parliament.
President Masood Pazeshkian visited Pakistan from August 2 to 3, and several MOS were signed in the fields of information technology, law and justice, climate change and tourism. It is expected that formal agreements in these sectors will be followed soon.
The high point of the Iranian president’s visit was a contract that the trade between the two should be increased from the current $ 3 billion to $ 10 billion annually.
The cheapest trade is always with someone’s neighbors. There is plenty of informal trade between Iran and Pakistan – which is equivalent to formal trade.
Iran and Pakistan have a lot to offer each other. Pakistan is already buying 200 MW of electricity from Iran for its Makran Division and Gwadar. Iran is the fourth largest oil reserves and the second largest gas reserves so that energy exports make up 82 % of its export revenue. Other Iranian exports include chemicals, plastics, fruits, ceramic products and metals, Persian carpet, saffron, turquoise jewelry and small paintings. Iran grains (wheat, rice, and corn), fruits (dates, figs, pomegranates, melons and grapes), vegetables, cotton, sugar, dried fruits and nuts (pistachios, almonds, walnuts, walnuts, raisins and rash), petrochemical products, etc.).
If the volume of trade is to be increased, appropriate steps should be taken on the ground. Most importantly, there is a question of demand and supply from both sides. Digital products can have trade production avenue.
Iranian food products are of high quality and Makran Coastal Belt is full of Iranian products. Iran demands Pakistani rice, mango and orange. Iranian markets also have a place for sports gear and medical equipment. However, Pakistan’s textile products have not yet made any mark in Iran.
The Joint Economic Commission conducts annual meetings along with the Chamber of Commerce meetings on both sides. A preferential trade agreement (PTA) was signed between the two countries in 2004, despite the numerous rounds of the Free Trade Agreement (FTA). Also, the shortage of proper banking channels between the two countries hinders trade.
Suitable, to take appropriate steps on the ground for the rapid increase in the volume of trade. Most importantly, there is a question of demand and supply from both sides. Trade in digital products can be a good avenue. These are the goods, services or fees provided by digital sources or facilitates. These include automated and encoded services and digital mediation fees. Downloading the video game, streaming the film or buying ads in a social media platform are examples of digital trade. Both Pakistan and Iran are developing in digital industries and big youth markets.
Played by a young and tech lover and the growing use of technology in various sectors, Iran’s digital industry is growing rapidly. The Iranian government expects the digital economy to increase at a rate of 35 % annually.
Similarly, Pakistan’s IT sector is an important part of exports. It has enjoyed steady growth and has a significant potential for further expansion.
The textile industry is the foundation stone of Pakistan’s economy. Being a significant assistant in the largest manufacturing sector and exports, it is about 8.5 % of GDP and 60 % of export revenue.
In terms of quality, Pakistan’s textile products compete with other countries in the region.
There are a variety of routes to enhance bilateral trade. There are also challenges challenges to overcome it, but profit is higher than barriers.
Author is a communication strategy in the Institute of Regional Studies, Islamabad. It can be arrived at Reema.asim81@gmail.com.
