Parliament Speaker Mohammad Bagher Ghalibaf said that expanding border trade and economic cooperation with Pakistan would help strengthen security and boost growth in both countries while creating new opportunities for mutual development.

Speaking upon his return from a three-day visit to Pakistan on Friday, he said, “If border markets are developed and trade with Pakistan continues to flourish, much of the insecurity and border challenges between the two countries will be addressed, as turning border areas into centers of legitimate and large-scale economic activity would naturally reduce smuggling and insecurity while paving the way for greater stability and mutual prosperity."

The trip, which began on Wednesday at the invitation of Pakistan’s National Assembly Speaker Sardar Sadiq, included meetings with senior officials such as Acting President and Senate Chairman Yusuf Raza Gilani, Prime Minister Shehbaz Sharif, and Chief of Army Staff Asim Munir.

He added that “one of the main purposes of this visit was to express appreciation to the people and officials of Pakistan for their valuable positions during the 12-day war against the Zionist regime (of Israel),” noting that wherever the Iranian delegation met with the public, “they expressed happiness over Iran’s strong and decisive response to the Zionist regime’s aggression.”

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The visit also focused on advancing the implementation of 12 cooperation documents signed during President Masoud Pezeshkian’s recent trip to Pakistan, with “good progress made in this regard, especially in areas such as free trade and barter, which were discussed in detail.”]

Iran, Pakistan, strengthen bilateral cooperation

In recent weeks, Iran and Pakistan have taken significant steps to deepen their bilateral cooperation across economic, trade, transport and security fields. During a high-level meeting in Tehran on 28 October 2025, Iran’s Supreme National Security Council Secretary Ali Larijani affirmed that relations with Pakistan are poised to evolve into a long-term strategic partnership. He emphasised that the two neighbours should strengthen joint work in political, security, economic and defence areas.

One of the major developments is Pakistan’s issuance of a new Statutory Regulatory Order (SRO) to expand barter trade with Iran. Announced on 19 October 2025, the new regulation is designed to address business-community concerns in both countries and to boost economic cooperation by providing a smoother mechanism for barter trade. The move is framed as part of a broader push to diversify trade and circumvent financing and banking restrictions.

On the infrastructure and transit front, Iran and Pakistan signed an agreement in late October 2025 to modernise rail networks and ease customs procedures. Under the deal, the two countries will rehabilitate and expand railway connections, streamline truck movement across the border, and link Pakistan’s ports of Karachi and Gwadar with Iran’s Chabahar port, thereby enhancing connectivity between China, Pakistan, Iran, and Europe.

These economic and transport initiatives are closely tied to security and border-region stability. Earlier in August 2025, Iran and Pakistan signed 12 bilateral cooperation agreements during Iranian President Masoud Pezeshkian’s visit to Islamabad, with trade volume targets raised from about US $3 billion to US $10 billion. At the same time, they discussed the concept of turning border markets into engines of growth and security, thereby reducing smuggling and illicit activity along their frontiers.