Pakistan and Iran are accelerating efforts to transform their shared border from a historically volatile frontier into a hub for trade and investment, as both countries advance plans for a special economic zone and pursue a target of $10 billion in bilateral trade.
The renewed push comes at a potentially significant moment for the region. Following the recent U.S.-Iran peace agreement, officials in Islamabad and Tehran are looking ahead to the possibility of sanctions relief that could unlock economic opportunities long constrained by geopolitical tensions.
During talks in Islamabad on 18 June, Pakistan's Investment Minister Qaiser Ahmed Sheikh and Iranian Ambassador Reza Amiri Moghadam agreed to fast-track implementation of the Rimdan-Gabd Special Economic Zone along the two countries' shared border. The project forms part of a broader framework agreed between Pakistan's Board of Investment and Iran's Supreme Council of Free Trade, Industrial and Special Economic Zones.
Both sides reaffirmed their commitment to increasing bilateral trade to $10 billion in the coming years, a target first outlined in agreements signed last year across multiple sectors.
For years, Pakistan and Iran have struggled to translate political goodwill into substantial economic integration.
Security concerns along their porous border, sanctions on Tehran, banking restrictions and inadequate transport infrastructure have all constrained commerce between the neighbouring countries.
Officials acknowledged that cross-border trade has fallen sharply in recent months. Before the latest regional tensions, between 700 and 800 trucks crossed the border each day. Both governments are now discussing measures to increase that number to as many as 2,000 trucks daily.
The meeting also addressed Iranian containers stranded at Karachi Port for around 100 days, including shipments containing medicines, highlighting the practical challenges that continue to hamper trade.
Both countries believe geography could provide a significant opportunity.
Ambassador Moghadam said Iran was prepared to facilitate greater Pakistani access to Central Asian markets, while Sheikh highlighted the strategic location of the Rimdan-Gabd corridor near major ports and maritime routes.
Iranian Commercial Attaché Murad Nemati argued that stronger connectivity linking Karachi, Gwadar, Bandar Abbas and Chabahar could help connect South Asia, West Asia and Central Asia through new trade and logistics networks.
For Pakistan, the significance extends beyond bilateral trade. As traditional transit routes through Afghanistan face recurring political uncertainty, policymakers increasingly view connectivity with Iran as part of a broader strategy to diversify access to regional markets.
Whether that vision becomes reality will depend less on headline trade targets and more on implementation. The success of the Rimdan-Gabd project, progress on border infrastructure and the pace of any sanctions relief for Iran will ultimately determine whether the latest diplomatic momentum can be transformed into lasting economic integration.
Ukrainian forces struck a Russian oil refinery in Siberia and a seaport in Dagestan in the past 24 hours, President Volodymyr Zelenskyy s...
GITEX AI Türkiye opened in Istanbul on Wednesday, bringing the international technology exhibition network to the country for the first time....
U.S. President Donald Trump put himself and the Iran war at the centre of the Republican midterm campaign on Wednesday, rallying voters in Dallas w...
Four people were killed, including a child, in Ukrainian strikes on the Russian port city of Novorossiysk overnight, according to the governor of the Krasnodar region. Ukraine's drone forces commander, Robert Brovdi, said Russian military ships were destroyed in the attacks.
A TV channel was struck during a live broadcast on Tuesday, Ukrainian President Volodymyr Zelenskyy said, as Russian strikes on Kyiv killed at least three people, the city's Mayor Vitali Klitschko said. Meanwhile, drones hit civilian infrastructure in Russia's southwestern Saratov region.
Wildfires have broken out in Türkiye’s Antalya province, forcing hundreds of people to evacuate as strong winds fuelled the flames.
U.S. Central Command (CENTCOM) said its forces destroyed five Iranian crude oil carriers after the Islamic Revolutionary Guard Corps (IRGC) allegedly launched two ballistic missile attacks against a U.S. Navy warship over the past two days.
Iran’s Revolutionary Guards (IRGC) said on Wednesday they attacked two U.S. vessels and eight oil tankers in the Persian Gulf, calling the strikes a response to a U.S. attack on five Iranian tankers.
Overnight Iranian strikes on an air base in Jordan damaged multiple U.S. aircraft and left one without a wing, American media reported. Meanwhile, explosions were heard across parts of southern Iran according to local media reports.
Azerbaijan's education system is showing some of its strongest signs of progress in years, with the latest Programme for International Student Assessment (PISA) results revealing significant improvements in mathematics, science and reading.
At least 14 people were killed and 11 others injured after a powerful explosion ripped through a temporary weapons storage facility near the northern Syrian city of Sarmada in Idlib province on Wednesday, according to Syrian authorities.
Kazakhstan is stepping up investment in the Middle Corridor as rising freight volumes and demand for more diverse trade links drive the rapid expansion of the route connecting Asia and Europe.
Georgia’s International Maritime Forum has closed in Batumi with officials setting out investment targets, timelines and technical plans aimed at expanding the Middle Corridor and strengthening the country’s role in global trade.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment