Pakistan-Iran trade increases despite tensions

Islamabad: Trade relations between Pakistan and Iran are progressing despite the tense situation in the region. Latest data shows that Pakistan’s imports from Iran have increased continuously over the past few years.

According to sources in the Ministry of Commerce, Pakistan’s imports from Iran reached $248 million in July and August 2026. This volume was $212 million in the same period last year. Thus, imports were recorded at around 17 percent in two months.

This development is significant in that during the said period, tensions in the Middle East affected regional trade and transportation. Despite this, trade activities between Pakistan and Iran did not stop completely. According to recent reports, border trade with Iran also continued and the movement of export goods from Pakistan continued.

The trend of imports in Iran-Pakistan trade remained strong in the last fiscal year as well. In the fiscal year 2025-26, Pakistan imported goods worth $1.395 billion from Iran, which is about 12 percent more than the $1.241 billion in the fiscal year 2024-25. Available trade data also indicates a gradual increase in imports in recent years.

Pakistan and Iran have also taken steps to further enhance trade cooperation this year. In August, the two countries’ joint trade committee meeting agreed to improve barter trade, border markets, customs cooperation, transport and logistics. Both sides also reiterated the target of taking annual bilateral trade to $10 billion.

A major reason for the increase in trade is the geographical proximity of the two countries and the business links linked to border markets. Iran is an important regional source of energy, agricultural and some industrial products for Pakistan, while Pakistan also sees potential in the Iranian market for rice, mangoes and other products. In June, the two countries also discussed increasing agricultural trade.

Pakistan’s overall imports have also increased during the first two months of the current fiscal year. In July and August 2026, the country’s imports stood at $12.575 billion, up 13 percent from the same period last year.

According to experts, border infrastructure, payment mechanisms and customs systems will need to be made more effective to increase trade with Iran. In the current regional situation, it is also important for both countries to keep trade routes safe and functional.

Recent trade moves by Pakistan and Iran show that despite regional tensions, both countries are interested in maintaining and expanding economic ties.