Key Takeaways
- Pakistan’s top business body, FPCCI, targets $10 billion in bilateral trade with Iran within three to five years.
- Current trade stands at $2.8 billion, with Pakistan exporting $684 million and importing $2.1 billion from Iran.
- FPCCI urges both nations’ private sectors to forge robust industrial partnerships.
Pakistan’s top business body, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has set a target for bilateral trade with Iran to reach $10 billion annually within the next three to five years. This ambitious goal is aimed at significantly boosting current trade levels, which currently stand at approximately $2.8 billion.
Atif Ikram Sheikh, President of FPCCI, stated that while Pakistan and Iran share deep-rooted historical ties, their economic cooperation remains underutilised. He highlighted the potential for growth in various sectors, including agriculture, petrochemicals, mining, engineering, household appliances, and renewable energy.
The recent engagement of a high-profile Iranian business delegation from Arak Province with FPCCI is seen as a positive step towards achieving this target. The delegation was led by Naser Beigi, President of the Arak Chamber of Commerce, Industries, Mines and Agriculture. According to Beigi, Arak province offers heavy machinery, engineering equipment, automotive parts, agricultural technology, and mining solutions that are highly complementary to Pakistan’s evolving industrial sectors.
Murad Nemati, Commercial Attaché of Iran in Pakistan, emphasised the importance of formalising commercial partnerships through strategic business dialogues. He highlighted opportunities for joint ventures across diverse sectors such as agriculture, food processing, petrochemicals, mining, engineering, household appliances, and renewable energy.
Saquib Fayyaz Magoon, SVP FPCCI, stressed the need for a strategic shift in how both nations conduct business. He called on authorities to prioritise simplifying trade procedures, establishing formal banking channels and payment mechanisms, and strengthening logistics and transportation networks. Magoon stated that FPCCI will extend all-out assistance to Iranian and Pakistani businessmen seeking to formalise commercial partnerships.
Sheikh explained that the current volume of bilateral trade between Pakistan and Iran falls significantly short of its true potential. He noted that while Pakistan exports $684 million to Iran, it imports $2.1 billion from Iran, indicating a significant imbalance in trade flows. Sheikh urged both nations’ private sectors to move beyond conventional trade and forge robust industrial partnerships.
The FPCCI’s roadmap includes several key steps: strengthening industrial partnerships, improving banking channels, and simplifying cross-border trade procedures. These measures are expected to facilitate smoother business transactions and encourage more investment between the two countries.
Bilateral trade with Iran could rise to $10 billion annually within the next three to five years.
Atif Ikram Sheikh, President of FPCCI
Arak province provides heavy machinery, engineering equipment, automotive parts, agricultural technology, and mining solutions which are highly complementary to Pakistan’s evolving industrial and manufacturing sectors.
Naser Beigi, President of the Arak Chamber of Commerce, Industries, Mines and Agriculture
FPCCI will extend all-out assistance to Iranian and Pakistani businessmen seeking to formalise commercial partnerships.
Saquib Fayyaz Magoon, SVP FPCCI
