Pakistan, Iran Agree to Boost Agriculture Trade to $3 Billion in 2 Years

In a significant step towards strengthening economic ties, Pakistan and Iran have agreed to increase bilateral agricultural trade to $3 billion within the next two years. The agreement was formalized on Monday through a joint communique signed after a high-level ministerial visit to Tehran, led by Pakistan’s Minister for National Food Security and Research, Rana Tanveer Hussain. The visit marked a breakthrough in trade negotiations, with Pakistan securing Iran’s commitment to import a substantial portion of its rice requirements from Pakistan. This agreement is expected to provide a stable and consistent export market for Pakistani rice, according to a press release from the Ministry of National Food Security and Research. Under the new arrangement, Iran’s government and private sector will prioritize Pakistan as their primary source for rice imports. Additionally, Mr. Hussain obtained assurances from Iranian officials to address long-standing hurdles in mango exports, including delays in import permits and foreign exchange allocations. “This agreement is a major milestone for Pakistan’s agriculture sector, as it opens up new opportunities for our farmers and exporters,” said Mr. Hussain. Iran’s Minister for Agriculture, Gholamreza Nouri Ghezeljeh, highlighted the complementary strengths of the two countries, noting that the current volume of agriculture trade stands at $1.4 billion. He emphasized the growth potential, stating that Iran will expand exports of dairy products, nuts, fruits, and vegetables to Pakistan. In return, Pakistan will supply a portion of Iran’s corn and rice imports, as well as 60% of its meat imports under the new plan. The two sides also agreed to enhance cooperation in research on climate change and food security. A joint agriculture committee will be established to meet every six months, ensuring progress and addressing any bottlenecks in trade. The Pakistani delegation secured consensus on several facilitation measures aimed at easing agricultural trade. These include: “These measures will not only boost trade but also ensure that commodities reach markets in top quality,” said Mr. Nouri. Both countries reaffirmed their commitment to advancing towards a Free Trade Agreement (FTA), which will provide a long-term framework for expanding bilateral agriculture trade. The FTA is expected to further solidify economic ties and create a more predictable trading environment. The next session of the Iran–Pakistan Joint Economic Commission is scheduled to take place in Tehran next month, where further progress on the FTA and other trade initiatives is expected.