On Sunday, August 3, 2025, President Asif Ali Zardari welcomed Iranian President Dr. Masoud Pezeshkian to Islamabad for a two-day official visit, marking a significant step in strengthening the longstanding ties between Pakistan and Iran. The leaders held productive discussions at the Presidency, focusing on deepening bilateral cooperation across various sectors, including energy, trade, and regional security.
Deepening Bilateral Ties
Pakistan and Iran share a deep-rooted bond grounded in shared culture, religion, and mutual respect. During the meeting, both leaders reaffirmed their commitment to expanding collaboration in mutually beneficial areas. President Zardari emphasized the brotherly relationship between the two nations, highlighting the importance of joint efforts to promote peace, stability, and prosperity in the region. The discussions also covered major regional and global developments, with both sides advocating for coordinated diplomatic efforts to prevent conflict escalation.
President Zardari expressed appreciation for Iran’s consistent support on regional issues, particularly its solidarity during critical moments, such as Pakistan’s conflicts with India. He also thanked Iranian Supreme Leader Ayatollah Ali Khamenei for his steadfast support for the people of Indian-occupied Kashmir. Additionally, Zardari condemned Israel’s unprovoked aggression against Iran during the recent 12-day conflict, praising the courage and unity of the Iranian people.
President Pezeshkian, in turn, expressed gratitude for Pakistan’s unwavering support during the conflict, commending Islamabad’s advocacy for de-escalation, dialogue, and diplomacy. He emphasized that the deep ties between the two nations, rooted in history, religion, and culture, provide a strong foundation for further collaboration. Quoting the revered poet Allama Muhammad Iqbal, he stressed the importance of unity among Muslim nations to address global challenges.
Economic Cooperation and Trade Goals
A key focus of the visit was boosting economic ties, with both nations aiming to increase bilateral trade to $10 billion. Prime Minister Shehbaz Sharif, addressing a joint press conference with President Pezeshkian, announced the signing of 12 agreements and memoranda of understanding (MoUs) to advance cooperation in areas such as energy, agriculture, technology, and trade. These agreements aim to transform potential into actionable outcomes, with delegations from both sides tasked with detailed follow-up discussions to achieve the $10 billion trade target.
The leaders also condemned Israel’s attack on Iran’s nuclear facilities on June 13, 2025, which, according to Iranian authorities, resulted in 610 deaths, though rights groups estimate a higher toll of 974. Prime Minister Sharif expressed solidarity with Iran, offering condolences for the loss of Iranian generals, scientists, and civilians during the conflict. He praised Iran’s resilience and strategic response, which exposed vulnerabilities in Israel’s defense systems through retaliatory missile strikes.
Pakistan reiterated its support for Iran’s right to a peaceful nuclear program under the UN Charter and emphasized a zero-tolerance stance on terrorism, stating that an attack in Iran is as significant as one in Pakistan. Both leaders vowed to take concrete steps to combat terrorism and enhance regional security.
High-Level Business Forum and Free Trade Agreement
A high-level business forum was convened in Islamabad, attended by President Pezeshkian, Deputy Prime Minister and Foreign Minister Ishaq Dar, and prominent business leaders from both countries. The forum, hosted by Dar, focused on finalizing a Pakistan-Iran Free Trade Agreement (FTA) to boost trade. Commerce Minister Jam Kamal Khan highlighted progress in resolving tariff issues and improving border infrastructure to facilitate seamless trade. President Pezeshkian stressed the importance of Muslim unity and self-reliance, urging both nations to leverage their resources for development.
Dar underscored that economic diplomacy is a cornerstone of Pakistan’s foreign policy, with the FTA and platforms like the business forum serving as vital tools for enhancing collaboration in key sectors. The 12 agreements and MoUs signed during the visit covered diverse areas, including plant protection, science and technology, maritime safety, tourism, and meteorology, among others. These agreements also included provisions for judicial assistance, product certification, and a joint ministerial statement to finalize the FTA.
Strengthening Trade Corridors
In a separate meeting, Commerce Minister Jam Kamal and Iranian Minister for Industry, Mines, and Trade, Mohammad Atabak, discussed accelerating trade by removing border bottlenecks and fostering trust-based partnerships. Kamal proposed targeted trade delegations involving federal and provincial chambers of commerce to enhance market access and regulatory cooperation. He cited successful trade models used with Belarus and emphasized the strategic advantage of Pakistan and Iran’s proximity, which could reduce time and cost barriers.
Atabak echoed the need for clear facilitation mechanisms to support traders and industrialists, suggesting regular business-to-business exchanges and dedicated trade days during high-level visits. Both ministers agreed to prioritize sectors such as agriculture, energy, and logistics, with plans to fast-track the next session of the Joint Economic Commission (JEC). They also explored expanding connectivity to Turkey, Central Asia, Russia, and the Middle East, envisioning a robust regional economic bloc.
A New Era of Partnership
The visit underscored the historic and cultural ties between Pakistan and Iran, with both sides expressing optimism about a new phase of strategic economic partnership. The shared commitment to peace, prosperity, and mutual respect, coupled with concrete steps toward trade and security cooperation, positions Pakistan and Iran to reshape regional dynamics. As Minister Kamal noted, “The iron is hot, and we must act swiftly.” With high-level political alignment and private-sector enthusiasm, the two nations are poised to unlock their full economic potential.
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