BMP hails $10bn Pakistan-Iran trade target, demands removal of trade barriers
LAHORE: The Federation of Pakistan Chambers of Commerce & Industry’s Businessmen Panel (BMP) has welcomed the announcement of an $10 billion annual trade target between Pakistan and Iran, calling it a step in the right direction for regional economic cooperation.
However, it warned that such targets will remain only on paper unless both countries move swiftly to remove longstanding trade barriers, implement practical steps on the ground, and most importantly, complete the Iran-Pakistan gas pipeline project that has already suffered years of costly delay.
FPCCI former president and BMP Chairman Mian Anjum Nisar said here on Sunday that while the trade target reflects a positive political atmosphere and renewed interest in economic ties, the business community has witnessed many similar pledges in the past that failed to translate into real trade growth.
Pakistan, Iran set $10bn trade target
He said the central problem is not the lack of interest but the presence of systemic bottlenecks, regulatory restrictions, security issues, and inadequate infrastructure at the border, which continue to choke potential trade despite close cultural and geographical proximity.
He emphasised that the two countries have all the ingredients to become natural trade partners, but this potential will remain wasted unless both governments show seriousness in execution and build reliable commercial linkages beyond announcements.
He stated that one of the most crucial elements is the incomplete gas pipeline project, which, if operationalized, could provide Pakistan with a stable and cost-effective source of energy while boosting bilateral trust and regional interdependence. He reminded that Iran has already completed the construction of its portion of the pipeline years ago, but Pakistan’s side remains frozen due to external pressure and internal indecision.
Anjum Nisar said it is no longer feasible to delay the project under the pretext of international sanctions, as energy insecurity in Pakistan has now reached a critical stage, requiring bold and independent decision-making. He stressed that unless Pakistan finds a way to move forward with the gas pipeline, all talk of economic integration will remain hollow.
He said the government must urgently engage in constructive diplomacy with international stakeholders to carve out a viable space for pipeline completion without breaching global obligations.
He warned that further delay could lead to financial liabilities through arbitration proceedings already initiated by Iran, which could result in penalties running into billions of dollars. He said that economic sovereignty demands practical action, not just caution and postponement.
Nisar pointed out that trade volume between the two countries has remained disappointingly low for years, despite repeated expressions of interest from both sides. He said non-tariff barriers, lack of banking channels, absence of trade insurance, inconsistent customs policies, and severe border restrictions have made even basic trade difficult.
He cited the example of border areas like Mashkhel, where legal trade has collapsed due to over-regulation and tight fencing, depriving thousands of people of livelihoods and pushing commerce into informal or smuggling routes. He said a country cannot boost regional trade if it suffocates its own border economy.
He said both countries should work on reactivating legal trade routes under strict but facilitative regulation, ensuring that cross-border movement of goods does not become hostage to political or bureaucratic roadblocks. He urged both sides to develop joint border terminals, improve road links, and modernize customs procedures to reduce delays and encourage licensed trade.
He also called for the introduction of barter trade systems in permitted categories that could function without needing conventional banking links, which remain limited due to sanctions-related financial isolation.
He said BMP strongly believes that the $8 billion target is achievable but only if supported by a series of bold, clear, and time-bound actions. He emphasized that announcements made at the top level should now be matched by technical and logistical work on the ground.
He noted that the frequent change of governments, economic crises, and shifting regional dynamics often interrupt such initiatives, and that is why the private sector must be made a permanent stakeholder in any bilateral trade plan. He offered the full support of FPCCI’s BMP to facilitate sector-specific dialogue, organize trade exhibitions, and help solve practical challenges faced by exporters and importers on both sides.
Copyright Business Recorder, 2025