TEHRAN – Speakers at a seminar on the future of Iran-Pakistan relations and regional connectivity emphasized the need for constructive dialogue between officials from both countries to navigate administrative and logistical complexities. They stressed that securing mutual benefits and improving the well-being of the Iranian and Pakistani people require strong political will and reciprocal practical measures.

The seminar, titled "Iran-Pakistan Relations: Trade Outlook and Strengthening Connectivity," was held on Friday with the participation of the Iranian Embassy and hosted by the Institute of Strategic Studies Islamabad (ISSI).

The event brought together prominent experts from Pakistan’s diplomatic, media, economic, and political spheres, along with several foreign diplomats.

Among the keynote speakers were Iran’s Ambassador to Pakistan Reza Amiri Moghadam, Pakistan’s Ambassador to Tehran Muhammad Mudassir Tipu, ISSI Chairman Sohail Mahmood, and former Pakistani Ambassador to Iran Riffat Masood.

They underscored the $10 billion trade target and key energy projects as crucial steps toward strengthening bilateral relations.

Acknowledging the challenges hindering smooth trade between the two nations—stemming from administrative complexities, logistical barriers, and regional and global developments—speakers emphasized that structured engagement, fostering trust, and mutual respect form the foundation for a resilient and adaptable partnership between Tehran and Islamabad.

Pakistani experts highlighted the importance of enhancing border security, building mutual trust, and advancing projects such as linking the Gwadar and Chabahar ports and collaborating on the Belt and Road Initiative (BRI) to unlock greater trade potential.

Strategic synergy with neighbors: a key policy of Iran’s government

Addressing the seminar, Iran’s Ambassador to Pakistan Reza Amiri Moghadam stated that trade and connectivity are two fundamental pillars of both global and domestic economies, significantly influencing each other. Reliable and secure transportation, he noted, is a facilitator of sustainable trade, making investment in transit corridors both essential and highly beneficial for investors.

“In today’s rapidly evolving landscape, the international community faces two new concepts: tariff wars and corridor wars, both targeting key economic pillars,” he said. “Tariff wars, aimed at disrupting supply chains and obstructing trade among Global South nations, threaten international trade and the livelihoods of millions. Meanwhile, corridor wars—through the creation of competing routes, destructive rivalries, economic terrorism, insecurity, and instability—are designed to sustain unilateralism and hinder sustainable development goals.”

Amiri Moghadam highlighted the strategic geographic position of Iran and Pakistan, which play a vital role in connecting the vast networks of Asian and European countries. He stressed that developing transportation infrastructure and strengthening bilateral connectivity would facilitate broader regional interactions.

“With their transit capacities, diverse production sectors, and complementary economies, Iran and Pakistan can enhance their bilateral supply chains as well as those with other countries,” he added. “Iran serves as the gateway to Eurasia and the Caucasus, while Pakistan is the entry point to South and Southeast Asia. This unique positioning distinguishes the two countries from their other neighbors.”

The Iranian envoy further noted that the two nations share a 1,000-kilometer land and maritime border, with markets and border crossings fostering interdependence. The Rimdan-Gabd and Pishin-Mand border crossings have been activated to ease trade and facilitate smoother movement, while plans for additional border terminals and marketplaces are underway. However, he pointed out that bureaucratic and logistical hurdles remain, requiring joint efforts to address.

“Iran’s Chabahar Port and Pakistan’s Gwadar and Karachi ports hold immense potential for strengthening economic linkages between the two nations and the broader region,” Amiri Moghadam said. “Strategic and geopolitical concerns from certain external actors have led to misleading narratives portraying these ports as rivals, whereas, in reality, they are complementary according to all economic, geological, and strategic indicators.”

He reaffirmed Iran’s support for any initiative that fosters regional integration, strengthens bonds of peace and friendship among nations, and promotes economic prosperity. “Iran has consistently welcomed China’s Belt and Road Initiative (BRI) and related projects in line with this policy and is prepared to actively participate,” he added.

Iran-Pakistan trade: complementary, not competitive

Amiri Moghadam highlighted ongoing efforts to enhance transit routes, including the Islamabad-Tehran-Istanbul (ITI) freight train, as well as port cooperation and infrastructure development for East-West and North-South corridors. “These initiatives hold immense strategic and economic significance for both countries,” he said.

Under the Economic Cooperation Organization (ECO) framework, the ITI freight train is currently operational, offering significant opportunities for Iran and Pakistan to expand transit and transport collaboration through these corridors. He also pointed to the near-term completion of Iran’s railway link to Herat in Afghanistan and the Rasht-Astara railway connection, which are expected to transform transit in the region.

Despite a post-pandemic recovery in bilateral trade volume, Amiri Moghadam noted that current trade levels remain below potential. “Senior officials from both countries have set a $10 billion trade target, and achieving this goal requires intensified efforts,” he stated.

He emphasized that the Iranian and Pakistani markets are complementary rather than competitive. “Pakistan’s economy is driven by its textile and agricultural industries, while Iran’s economy is based on oil and semi-industrial production. Even in agriculture, the two countries are not competitors. Pakistan produces crops such as corn, sugarcane, rice, tropical fruits, sesame, and animal fodder, while it relies on Iran for petroleum products, gas, and agricultural and industrial machinery.”

“If Pakistan needs energy, Iran has an abundance of it. If Iran needs water management solutions, Pakistan is a fertile land with vast agricultural and livestock resources,” he explained. “These comparative advantages and complementary sectors strengthen economic ties between the two nations.”

With a combined population of over 340 million, Amiri Moghadam stressed that Iran and Pakistan must take concrete steps to fully harness their economic potential. “Strengthening ties with neighbors is a fundamental policy of the Islamic Republic of Iran and a key roadmap for our government,” he stated.

Amiri Moghadam concluded by emphasizing the need for further steps to enhance bilateral ties, including resolving bureaucratic barriers, expanding direct flights, improving transport infrastructure, and launching leisure cruise lines. “These measures will help strengthen connectivity, expand trade, and drive economic growth between the two nations,” he said.

EF/MA