Pakistan-Iran Pledge to Boost Border Trade ‘Largely Symbolic,’ Warns Business Forum

By Farzana Chaudhry
LAHORE, The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warned that Pakistan and Iran’s latest commitment to strengthen border infrastructure and expand bilateral trade will remain largely symbolic unless both governments take concrete steps to dismantle long-standing trade barriers and revive stalled regional projects.

BMP Chairman and former FPCCI president Mian Anjum Nisar said that while Islamabad and Tehran have repeatedly vowed to deepen economic cooperation, progress has remained minimal. “We have heard the same promises for over two decades, but tangible results are still missing,” he said. “Every meeting and memorandum ends in goodwill statements, not implementation.”

His comments followed Pakistan’s Commerce Minister Jam Kamal Khan’s visit to Tehran for the 22nd session of the Pakistan–Iran Joint Economic Commission (JEC), where both sides reaffirmed their intent to enhance border markets, streamline customs coordination, and improve transport links.

Nisar cautioned that the new pledges would be meaningless without structural reforms and political will. “Trade between the two countries stands at roughly $3 billion, far below potential,” he said. “The lack of banking channels, cumbersome customs procedures, inconsistent regulations, and over-reliance on informal barter trade continue to block formal business.”

He pointed out that the Iran–Pakistan gas pipeline project remains the most striking example of unfulfilled cooperation. “Iran completed its part years ago, yet Pakistan continues to delay construction under external pressure,” Nisar said. “This pipeline could transform Pakistan’s energy security, but indecision has crippled it.”

The BMP chairman also noted that key border districts such as Taftan, Panjgur, and Mashkhel, once hubs of cross-border trade, are now facing economic decline due to overregulation, inadequate infrastructure, and excessive security restrictions. “Instead of facilitating trade, policies have suffocated it,” he said, warning that such conditions fuel smuggling and erode government revenues.

While welcoming the proposal to expand border markets, Nisar emphasized that genuine facilitation requires digital customs systems, transparent procedures, and modern logistics. He also criticized the pattern of Joint Economic Commission meetings that end with “optimistic press releases but no measurable progress.”

“The time for photo sessions is over. Both governments must demonstrate seriousness through immediate actions such as operationalizing barter trade for select goods, reopening closed routes, and providing traders with access to banking and insurance,” he said.

Nisar warned that Pakistan’s credibility in regional economic diplomacy is at stake. “Repeated failures to deliver on promises damage investor confidence,” he said. “If Islamabad wants to position itself as a trade corridor, it must treat its border with Iran as an opportunity, not a threat.”