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Why Is Pakistan Interested in Trade With Iran Beyond Just Money?

© Sputnik / Vitaliy Ankov / Go to the mediabankThe FESCO Diomid container ship, the largest one in the history of the far eastern shipping, belonging to Far-Eastern Shipping Company, OJSC, unloaded in the port of Vladivostok
The FESCO Diomid container ship, the largest one in the history of the far eastern shipping, belonging to Far-Eastern Shipping Company, OJSC, unloaded in the port of Vladivostok - Sputnik International, 1920, 04.08.2026
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Pakistan and Iran have reaffirmed their resolve to expand bilateral trade to $10 billion. Iranian Minister Mohammad Atabak called Pakistan a "long-term strategic trade partner" and expressed optimism that the free trade agreement (FTA) would be concluded soon.
Goods transit offers Pakistan more than just revenue — it creates strategic leverage, according to Javed Hassan, former chairman of the Economic Advisory Group.
"By providing one of Iran's most efficient overland corridors, Pakistan becomes a stakeholder in Tehran's commercial connectivity. That strengthens Islamabad's hand on border security, energy cooperation — including future gas imports — and broader economic ties."
Gwadar and Chabahar can become complementary nodes, while infrastructure would also serve Afghanistan and Central Asia, making Gwadar a regional logistics hub, Hassan notes.

Gulf Relations

Pakistan must deepen ties with Iran without upsetting Saudi Arabia and the UAE. The red line: whether Pakistani territory facilitates sanctions evasion.

International Perception

Reputation follows performance. If Gwadar handles Iranian, Afghan and Central Asian trade, Pakistan's narrative as a connectivity hub will gain credibility. Until then, it remains an aspiration.

$10 Billion Target

Raising trade from near $3 billion to $10 billion in five years requires about 28% annual growth. Success depends on three things: a ratified FTA with tariff cuts, sanctions-compliant payment mechanisms, and expanded Gwadar throughput. Until then, this figure is a policy objective, not a forecast.
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