President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi, has welcomed the signing of 12 ministerial-level agreements between Pakistan and Iran. He said the recent conclusion of negotiations on a Free Trade Agreement (FTA) will boost economic growth and deepen bilateral cooperation.

In a statement issued on Monday, Naqi said current trade stands at $3 billion, with Pakistan’s share only a third. He stressed that with coordinated efforts, trade could rise to $10 billion. Key sectors include textiles, pharmaceuticals, leather, and food. He urged tapping into Iran’s affordable energy to support Pakistan’s industries.

“Pakistan and Iran have historic ties that have grown stronger over time. Our support during the Iran-Israel and Pakistan-India wars reflects our long-standing solidarity,” Naqi stated.

The KATI president urged governments to remove trade barriers and support local businesses seeking to enter the Iranian market. He also called for promoting barter trade to accelerate commercial ties. Naqi said the FTA would reduce tariffs, remove trade obstacles, and energise both economies. He urged stronger business-to-business engagement and recommended regular joint exhibitions and B2B meetings.

He also pressed for policies to attract both domestic and foreign investment, especially in agriculture and industry. “The Pakistan-Iran Free Trade Agreement has the potential to redefine our economic landscape and help both nations meet their growth targets through enhanced regional cooperation,” he concluded.

On Sunday, Pakistan and Iran officially agreed to increase trade from $3 billion to $10 billion in talks held in Islamabad between visiting Iranian President Masoud Pezeshkian and Prime Minister Shehbaz Sharif.

Pezeshkian’s visit marked his first official foreign tour since taking office and follows a 12-day war between Iran and Israel in June.