Pakistan and Iran Sign Deals to Boost Trade, Security Cooperation

Islamabad, Pakistan – Pakistan and Iran have signed multiple agreements to increase bilateral trade to $10 billion and enhance cooperation to combat terrorism, marking a significant step in strengthening ties during Iranian President Masoud Pezeshkian’s two-day visit to Pakistan, which concluded on Sunday, August 3, 2025.

The agreements, covering sectors such as energy, trade, information technology, law and justice, climate change, and tourism, were formalized during a joint press briefing in Islamabad. Pakistani Prime Minister Shehbaz Sharif announced the ambitious trade target, emphasizing the goal to elevate bilateral trade from the current $3 billion to $10 billion “as soon as possible.” Discussions also focused on formalizing existing informal trade, including oil and gas, to streamline economic ties.

Sharif condemned Israel’s recent 12-day aggression against Iran in June 2025, supported by U.S. military intervention, calling it unjustified. He reaffirmed Pakistan’s support for Iran’s right to a peaceful nuclear program under the UN charter. Both leaders vowed to counter terrorism and secure their shared border to foster regional peace and prosperity. “We have to protect our borders and take strict steps against terrorism to open the roads to peace and development,” Sharif said. President Pezeshkian echoed the commitment to regional stability, expressing gratitude for Pakistan’s support during the recent Iran-Israel conflict. He highlighted the potential for a Pakistan-Iran trade route to Europe, which analysts described as “efficient and logistically sound.” Pezeshkian also called for improved border management to address security threats, a priority given past tensions, including tit-for-tat missile strikes between the two nations in January 2024. Al Jazeera’s Kamal Hyder, reporting from Islamabad, noted that both countries agreed to enhance border management to prevent violence and discussed Pakistan’s potential role as an intermediary between Iran and the United States to ease tensions. The leaders also called for an immediate ceasefire in Gaza and condemned Israel’s actions in the enclave. Despite historical strains, including cross-border incidents, Pakistan and Iran have maintained diplomatic engagement. In May 2025, Iran’s foreign minister visited Pakistan amid heightened tensions with India, which nearly escalated into a fifth all-out war before a ceasefire halted deadly aerial exchanges. Pakistan has consistently supported Iran’s right to self-defense, including during the recent Iran-Israel conflict. The agreements and discussions signal a renewed commitment to deepen diplomatic and economic ties, with both nations aiming to counter security challenges and boost regional stability.