Islamabad (GNP): Federal Minister for the Board of Investment (BOI) Qaiser Ahmed Sheikh met with a senior Iranian business delegation, accompanied by officials from the Iranian Embassy, to discuss expanding bilateral trade and exploring new investment opportunities between the two countries.
The Iranian delegation included Mohammad Reza Chafarallahi, Chairman of Trade Facilitation and Development, Shahrooz Shariat, and representatives from the Kerman and Tehran chambers of commerce. Senior BOI officials, including Director General Mehmood Tufail, also attended.
Emphasis on Shared Ties and Market Potential
Welcoming the delegation, Sheikh spoke about the historical, cultural, and religious bonds between Pakistan and Iran, describing the two nations as neighbors with substantial untapped economic potential. He pointed to Pakistan’s market of over 250 million people as a significant opportunity for trade and investment.
Kerman’s Economic Profile and Trade Corridor Proposal
The Iranian delegation highlighted Kerman province’s economic significance, noting its four economic zones, a chamber of commerce with more than 2,000 members, and its standing as a leading mining region that contributes roughly a quarter of Iran’s agricultural output, particularly in pistachio and date production.
The delegation proposed developing a trade corridor linking Karachi, Rimdan, and Bam, with potential extension to Chabahar, suggesting a joint investment venture along this route to improve connectivity and expand trade between the two countries — a proposal both sides viewed as a promising step toward stronger regional trade integration.
Growing Trade Relationship
The Iranian side noted that Pakistan’s exports to Iran have grown for the first time in the countries’ trade history, expressing interest in building on this momentum. They noted that over 1,000 business meetings have already taken place between Pakistani and Iranian businesspeople in Kerman, laying groundwork for further cooperation.
Shariat highlighted opportunities in the rice trade specifically, noting that Iran requires around 3 million tons of rice annually, with 1 million tons currently imported. He said Pakistan’s share of Iran’s rice imports has grown to roughly 40%, and identified areas where trade processes could be streamlined to further boost exports.
Discussion on Joint Ventures and Trade Mechanisms
Sheikh highlighted potential joint venture opportunities in sectors including rice processing, petrochemicals, steel, engineering, and auto parts, citing Pakistan’s existing rice-processing partnership with Malaysia as a model for similar collaboration with Iran.
Given ongoing banking and sanctions-related constraints, Sheikh proposed exploring barter trade arrangements — such as exchanging rice for chemicals — as a way to sustain and grow bilateral trade despite external limitations. He also shared his personal experience visiting Iran and engaging with Iranian business partners, noting his familiarity with the market and interest in Persian language and culture.
Discussions also covered potential cooperation in engineering services, including testing, inspection, and certification, with Sheikh noting that Pakistani institutions such as the Pakistan Standards and Quality Control Authority could support certification processes for joint ventures with international partners.
Next Steps
The Iranian delegation thanked the Pakistani government for its facilitation efforts and invited Sheikh and BOI leadership to visit Iran to further strengthen institutional ties. Sheikh welcomed the invitation, noting that such a visit is already under consideration as part of broader economic diplomacy efforts.
The meeting took place alongside other ongoing engagement between the two countries, including a visit by Iran’s Minister of Trade to Pakistan and meetings with Pakistan’s Commerce Minister, as well as renewed activity within the bilateral Joint Trade Committee.
BOI Director General Mehmood Tufail thanked the delegation for their visit and reaffirmed the board’s commitment to supporting investors, describing a shared goal of strengthening trade and investment cooperation between the two countries based on mutual benefit.
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Sheikh closed the meeting by reaffirming BOI’s continued commitment to facilitating foreign investment and unlocking further economic potential between Pakistan and Iran.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
