The Iranian President, Masoud Pezeshkian, visited Pakistan to meet Prime Minister Shehbaz Sharif on August 3, 2025, to discuss bilateral issues. During the visit, the two countries agreed to increase the yearly trade to a value of $10 billion, and 12 memoranda of understanding were signed between the two nations on key areas.
At a joint press conference, Prime Minister Sharif confirmed that discussions covered trade, energy cooperation, regional security, and shared cultural and religious ties.
MoUs Finalized During the Visit
1. Trade and Border Markets Development
The two countries agreed to put in place systems of rice and meat export and fruit importing, and also settle into utilizing an official system of barter-based trade. Development of bilateral markets of the border at Mand/Pishin, Chadgi/Kuhak, and Gabd/Rimdan was also part of it. It reopened the Mand-Pishin border market before the visit.
2. Mutual Standards and Certification
An MoU signed for mutual recognition of testing, inspection, and product certification to ease trade processes and reduce non-tariff barriers.
3. Air Services Expansion
The 2013 Air Services MoU supplemented by a second MoU, by which flight links were increased between the two nations.
4. Judicial and Criminal Matters
Agreements over procedures of judicial cooperation in criminal matters signed between the two countries, including extradition procedures.
5. Maritime Safety and Firefighting Cooperation
A bilateral agreement was signed in safety services of the sea and firefighting support systems.
6. Meteorology and Climate Cooperation
The two agreed to collaborate in weather forecasting, climate modelling and disaster risk reduction with emphasis on flood forecasting and drought forecasting.
7. Youth, Culture, and Tourism Exchange
Iran and Pakistan signed an agreement for bi-annual tourism workflow and cultural exchanges involving youth, arts, and media between 2025–2027.
8. ICT and Technology Collaboration
Collaborative programs were finalized for innovation, ICT fairs, and knowledge-sharing in science and technology sectors.
Joint Trade Action Plan and FTA in Progress
Pakistan and Iran issued a joint ministerial statement confirming progress on a Pakistan–Iran Free Trade Agreement. The framework is substantively finalized, with tariff and logistics revisions pending. Commerce ministers from both countries confirmed plans to implement reforms for faster trade facilitation.
A barter trade system B2B was improved, and a list of products extended, and obstacles in the form of pre-approval were eliminated. The measure focuses on sanctions-linked limitation of payments and increases volume of domestic trade.
Energy, Transit, and Nuclear Cooperation
The two leaders reiterated their support to the regional cooperation on energy and talked about the need to widen the Gwadar and Chabahar transit route. The power linkage between Polan-Gabd (a 100 MW power connection to Gwadar) made operational and the upcoming expansions are still under consideration.
Prime Minister Sharif reiterated Pakistan’s support for Iran’s right to peaceful nuclear energy. He also condemned the June 2025 Israeli strike on Iran and called for a Gaza ceasefire, linking the situation in Gaza to that in Indian-administered Kashmir.
Pakistan and Iran are due to hold their 22nd Joint Economic Commission in the second half of August or in early September 2025. It will complete the implementation plans on the MoUs and the FTA. Regulatory reforms, i.e. joint e-customs interface and tariff rationalization, were prioritized.