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Pakistan-Iran FTA Talks Accelerated as $10 Billion Trade Goal Is Targeted

Satisfactory progress has been reported after Pakistan and Iran concluded the three-day 10th Joint Trade Committee meeting. Technical modalities for the proposed Free Trade Agreement were advanced, and groundwork was laid for its early finalisation. The agreement is expected to support the shared target of raising bilateral trade to $10 billion through improved market access, cross-border commerce and stronger economic cooperation.

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Pakistan-US Shipping Costs Surge 200%

Shipping costs for Pakistani exports to the United States have surged by over 200% on some routes amid Iran war-related disruptions. According to SMAP founding chairman Ismail Suttar, Karachi-to-New York container rates have jumped from around $2,000 to $8,000–$9,000. Higher war-risk insurance, fuel costs and limited vessel availability threaten Pakistan’s export competitiveness. SMAP urged the government to introduce an emergency relief strategy.

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Pakistan, Saudi Arabia Target $3bn Food Trade

Pakistan and Saudi Arabia have agreed to increase Pakistani agricultural and food exports to the Kingdom to as much as $3 billion. Rice, red meat, fruits, concentrates, green fodder and water-efficient agricultural technologies were identified as priority sectors. Saudi Arabia also expressed interest in gradually doubling red-meat imports from Pakistan. In 2025, Pakistan supplied the Saudi market with approximately 169,000 tonnes of rice worth $163 million and 30,000 tonnes of red meat valued at around $167 million.

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Exports to Central Asia Decline 4.1%

Pakistan’s bilateral trade with five Central Asian Republics fell 50.62% to $219.125 million in FY26, compared with $443.712 million in FY25. Exports to Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan declined 4.1% to $190.578 million, while imports plunged 88.35% to $28.547 million. Kazakhstan remained Pakistan’s largest regional trading partner, followed by Uzbekistan. Kyrgyzstan was the only country to record growth in bilateral trade. Pakistan’s annual trade with Central Asia generally ranges between $400 million and $500 million, largely through Afghanistan.

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