A new barter agreement set to transform Iran-Pakistan ties

October 27, 2025 - 20:37
Pakistan’s ambassador to Tehran says the deal ‘significant and valuable’ 

TEHRAN – During a press conference at the Pakistani embassy in Tehran, Pakistan’s Ambassador to Iran, Muhammad Mudassir Tipu, said the two countries are poised for even deeper ties as a recently signed barter agreement begins implementation and expands to include various sectors.

Ambassador Tipu's Q&A session followed an event commemorating 'Kashmir Black Day,' an annual observance by Kashmiris and Pakistanis worldwide. This day, October 27, 1950, marks when Indian troops landed in Srinagar to gain control of the state of Jammu and Kashmir, reportedly killing scores of people. India rejects the 'Black Day' term.

Answering a question from the Tehran Times, the envoy stated that Iran and Pakistan have yet to finalize the specific products that will be exchanged under the new barter agreement, which he noted was signed at Tehran's request. "This deal is very important and significant," he said. "Both countries will particularly benefit if the private sector is involved."

Iran and Pakistan have enjoyed close and cordial ties since Pakistan's independence in 1947. In recent years, economic cooperation has become a central focus in discussions between the two countries' dignitaries, with both sides recognizing immense untapped potential between the neighboring nations. Significant steps taken recently include the inauguration of border markets and ongoing negotiations for a free trade agreement, which Ambassador Tipu stated could be signed soon.

Iran and Pakistan have also become increasingly vocal in supporting each other during times of conflict. Ambassador Tipu noted that Pakistan was the first country to unequivocally condemn Israeli attacks on Iran in June. Iran, for its part, also sought to aid Pakistan during the two conflicts it faced this year. For example, Iranian Foreign Minister Abbas Araghchi offered to mediate between Pakistan and India in May, an offer the envoy stated Islamabad happily accepted but New Delhi rejected.

Border security is another pressing issue in Tehran-Islamabad relations. Pakistan’s Interior Minister, Syed Mohsin Raza Naqvi, is scheduled to arrive in Tehran on Tuesday. While his primary purpose is to attend an Economic Cooperation Organization (ECO) ministerial meeting, he is also expected to hold separate discussions with relevant Iranian officials.