Pakistan, Iran Sign MoUs to Boost Trade, Security Ties

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Pakistan and Iran signed 12 Memoranda of Understanding (MoUs) during Iranian President Dr. Masoud Pezeshkian’s visit, aiming to elevate bilateral trade to $10 billion annually and enhance cooperation in security, energy, and cultural sectors.

During a two-day state visit concluding on August 3, 2025, Pakistan and Iran formalized 12 MoUs covering trade, technology, agriculture, tourism, and security, as reported by Radio Pakistan. The agreements, signed in the presence of Pakistani Prime Minister Shehbaz Sharif and President Pezeshkian, aim to transform bilateral trade from $3 billion to $10 billion, with a focus on finalizing a Free Trade Agreement (FTA). Sharif, addressing a joint press conference, expressed hope that the MoUs would soon become binding agreements, emphasizing joint efforts to combat terrorism along the shared border, according to Arab News. Pezeshkian highlighted the agreements’ role in fostering economic and cultural ties, noting Pakistan’s potential as a trade route to China and Europe, per Press TV.

The Foreign Office (FO) of Pakistan stated that the MoUs provide a framework for knowledge exchange and regional synergy, covering sectors like judicial cooperation, transportation, and cultural heritage. Pezeshkian’s visit, which included meetings with President Asif Ali Zardari and Senate Chairman Yousaf Raza Gillani, underscored Pakistan’s support for Iran during the June 2025 Iran-Israel conflict. Zardari condemned Israel’s attacks on Iran’s nuclear facilities, reaffirming Pakistan’s stance on Iran’s right to peaceful nuclear energy, as per Dawn. Both leaders called for a Gaza ceasefire, highlighting shared regional concerns.

Security cooperation was a key focus, with commitments to joint border patrols and intelligence sharing to counter militant groups like Jaish al-Adl, active in the Balochistan region, according to The Defense Post. The agreements build on prior efforts, including those from late Iranian President Ebrahim Raisi’s 2024 visit, which also targeted $10 billion in trade, per The Media Line. Pakistan’s strategic balancing act was evident, as it navigates ties with Iran while maintaining relations with the United States and Saudi Arabia, as noted by the Atlantic Council. The visit, marked by a state banquet hosted by Zardari, signals a renewed push for stability and prosperity in the region.