In an effort to reiterate his commitment to enhance bilateral trade with Pakistan, Iranian President Masoud Pezeshkian landed in Pakistan on Saturday.

 

According to reports, his delegation consists of key ministers and senior officials such as Iran’s Foreign Minister Abbas Araghchi, all of whom are in the country to execute outlined plans of raising the bilateral volume of trade between the two neighbours up to a staggering $10 billion.

 

For reference, the official volume of trade between both countries sat at just $2.8 billion in fiscal year (FY) 2024-25 Earlier this year, Pakistan and Iran reportedly agreed to boost bilateral volume of trade over a period of five years.

 

The Iranian president’s intent to boost the volume of trade between both countries comes amid reports suggesting that Iran aims to improve its access to East Asian economies such as China, via Pakistan.

 

This claim holds merit as Iran’s president suggested that Iran could connect itself “to the Silk Road linking Pakistan and China, and the route can then extend through Iran to Europe”. If Tehran remains successful in this initiative, it would prove to be greatly beneficial for Iran as it would become the centre of trade between Europe and China.

 

A “Silk Road” passing through Iran would also give the country significant strategic leverage over major global economies. By becoming a vital trade corridor between Europe and China, Iran could increase the cost of sanctions imposed against it, as these economies would find themselves more economically intertwined with Tehran.

 

Reports indicate that the Iranian president has also outlined the great economic relations both countries have maintained with each other as both “countries cooperate in economic, scientific, cultural and border areas”. Pakistan and Iran have been improving economic relations considerably after tensions between both sides peaked in January 2024, when both countries exchanged airstrikes.

 

In February 2025, Iran revealed that it would take initiatives to boost economic cooperation, such as reducing the costs associated with business visas for Pakistani individuals looking to invest into Iran.