Pakistan & Iran Strike $10 Billion Deal: Trade, Security & Peace on the Agenda

In a major diplomatic move, Pakistan and Iran have agreed to boost trade and strengthen border security during Iranian President Masoud Pezeshkian’s two-day visit to Islamabad.

The two neighbours signed several key agreements aiming to raise their annual trade volume to $10 billion, up from the current $3 billion. The deals also cover energy, security cooperation, tourism, law, IT, and more.

At a joint press briefing, Prime Minister Shehbaz Sharif said both countries will work together to eliminate terrorism and open the doors to peace and development in the region.

“We have set a target of $10 billion in trade and hope to achieve it as soon as possible,” Sharif said.

President Pezeshkian echoed this optimism, calling the trade boost possible “in a short time.” He thanked Pakistan for supporting Iran during the recent 12-day conflict with Israel and the U.S., which Tehran described as “terrorist aggression.”

Trade, Energy & Beyond

The leaders discussed ways to formalise the large informal trade already happening between the two nations especially in oil and gas. Experts believe this could even create a new trade route from Pakistan to Europe, improving logistics across the region.

“It would be an efficient and logistically sound route,” said analyst Ammar Habib Khan from Karachi’s Institute of Business Administration.

 

Tough Talk on Security

The two leaders agreed to tighten border security and stop any terrorist activities on either side of the border. Cross-border tensions have previously flared up, including missile strikes exchanged in early 2024.

“We must protect our borders and take strong steps against terrorism,” Sharif said.

President Pezeshkian also stressed the need for better border management and cooperation, a key point of discussion between the countries' defence and foreign ministers.

Regional Peace & Diplomacy

Despite past tensions, both countries are keeping diplomatic doors open. Pakistan even hinted at acting as a mediator between Iran and the U.S., as part of global efforts to reduce tensions.

Pakistan also showed strong support for Iran during its standoff with Israel, and both countries called for an immediate ceasefire in Gaza. 

What’s Next?

The signed MoUs (Memorandums of Understanding) span:

• Energy and trade
• Information technology
• Law and justice
• Climate change
• Tourism

With regional tensions slowly easing and both countries showing willingness to collaborate, this visit could mark a turning point for Pakistan-Iran ties—focusing more on trade, peace, and prosperity rather than conflict.