Pakistan, Iran launch new push to hit $10 billion trade, target customs, banking hurdles

Pakistan, Iran launch new push to hit $10 billion trade, target customs, banking hurdles
Pakistan’s Commerce Minister Jam Kamal Khan (center) attends the 22nd meeting of the Pakistan-Iran Joint Economic Commission (JEC), in Tehran, Iran, on September 16, 2025. (Commerce Ministry)
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Updated 8 min 10 sec ago

Pakistan, Iran launch new push to hit $10 billion trade, target customs, banking hurdles

Pakistan, Iran launch new push to hit $10 billion trade, target customs, banking hurdles
  • Pakistan’s commerce minister speaks to business leaders, officials and diplomats from both countries at Pak-Iran Business Forum
  • Jam Kamal Khan calls for enhanced foreign direct investment in Pakistan’s energy, minerals, agriculture and manufacturing sectors

ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal Khan on Tuesday highlighted several initiatives to enhance bilateral trade with Iran such as removing impediments in customs, tariffs and removing banking hurdles, the commerce ministry said in a statement. 

Khan arrived in Tehran on a three-day visit to the country on Sunday. The Pakistani minister is attending the 22nd meeting of the Pakistan-Iran Joint Economic Commission (JEC), amid efforts by both countries to forge closer economic, trade and investment relations through border markets and trade links.

Pakistan and Iran, which have remained at odds over instability along their shared border, plan to increase their bilateral trade to $10 billion from the existing figure of around $3 billion. Speaking at the Pak-Iran Business Forum 2025 to business leaders, officials and diplomats from both countries, Khan said the two countries’ bilateral economic partnership should be as deep as their religious, cultural and historical bonds. 

“The minister outlined a series of ongoing and planned initiatives to transform bilateral trade, including: seventeen new protocols under negotiation covering banking facilitation, logistics, shipping, aviation, free zones, high-end manufacturing, agriculture, and investment promotion,” the ministry said. 

The minister also spoke of the need to operationalize border markets and special economic zones to boost livelihoods in border areas. He called for enhanced foreign direct investment in Pakistan’s energy, minerals, agriculture and manufacturing sectors. 

Khan highlighted the need for close technical coordination between the teams of both countries to resolve “long-standing impediments in customs, tariffs, and regulatory processes.”

“Our industrial sector is improving, services and IT are rising, and foreign investment is looking to Pakistan,” Khan noted. 

The minister invited Iranian companies to participate in Pakistan’s upcoming Agriculture Expo in November 2025, calling it “a gateway to explore manufacturing hubs, meet counterparts and discover new markets.”

Farzaneh Sadegh, Iran’s minister for road and urban development, said she was confident that under the vision of both leaderships, Pakistan and Iran are moving steadily toward the $10 billion trade target. She highlighted Iran’s keen interest in joint investment projects in pharmaceuticals, engineered goods, ceramics and other high-value sectors.

“Ms. Sadegh underscored that Iran views the Pakistan–Iran Business Forum as a practical platform for accelerating cooperation and generating concrete outcomes for both nations,” the commerce ministry said. 

Pakistan and Iran have renewed their push to enhance bilateral trade in recent months. The two countries exchanged 12 agreements, memoranda of understanding for bilateral cooperation in diverse fields during Iranian President Dr. Masoud Pezeshkian’s visit to Pakistan last month. 


Pakistan calls for protection of Yemeni civilians as tensions surge between Houthis, Israel

Pakistan calls for protection of Yemeni civilians as tensions surge between Houthis, Israel
Updated 16 September 2025

Pakistan calls for protection of Yemeni civilians as tensions surge between Houthis, Israel

Pakistan calls for protection of Yemeni civilians as tensions surge between Houthis, Israel
  • Israel carried out strikes in Yemen’s Sanaa and Al-Jawf governorate last week, killing at least 35
  •  Pakistan’s UN envoy says Israeli attacks on civilian infrastructures can’t be justified “under any pretext”

ISLAMABAD: Pakistan’s deputy ambassador at the United Nations this week called for the protection of civilians in Yemen amid the ongoing cycle of violence between Israel and Houthi rebels, urging dialogue and diplomacy to resolve conflicts in the Middle East. 

International media reports said at least 35 people were killed after Israel carried out air strikes in the Yemeni capital of Sanaa and Al-Jawf governorate last week. The strikes were carried out a day after Israel targeted Hamas leaders in Doha on Sept. 9, triggering angry reactions from Muslim countries worldwide. 

The strikes were the latest in more than a year of attacks and counterstrikes between Israel and Houthi militants in Yemen, part of a spillover from the war in Gaza. At the UN Security Council briefing on Yemen on Monday, Pakistan’s Deputy Permanent Representative to the UN Usman Jadoon voiced concern at the rising violence between Israel and Houthi militants. 

“Pakistan expresses deep concern on the ongoing cycle of violence between the Houthis and Israel and its repercussions on Yemen and the region,” Jadoon said. “We call for restraint, de-escalation and the protection of civilians.”

Jadoon condemned Israel’s attacks against civilians and civilian infrastructure in Yemen, saying they “cannot be justified under any pretext.”

Houthi militants have detained at least 21 UN personnel from Aug. 31, drawing sharp condemnation from the Security Council. Jadoon condemned the arbitrary detentions and the forced entry into World Food Programme and UNICEF by Houthi members. 

“These actions violate international law, undermine the UN’s ability to operate in Yemen and deliver the much-needed assistance,” he said. “The safety of UN staff and property, and the inviolability of UN premises must be guaranteed at all times.”

The Pakistani envoy said it remains imperative to prioritize sustainable solutions for Yemen through dialogue and diplomacy. 

“We urge all parties to break the stalemate through political will and concrete steps toward an inclusive peace process,” Jadoon said, calling on the Security Council to facilitate the process.


Pakistan PM meets Qatari emir, calls for unity among Muslim nations following Israeli attacks

Pakistan PM meets Qatari emir, calls for unity among Muslim nations following Israeli attacks
Updated 16 September 2025

Pakistan PM meets Qatari emir, calls for unity among Muslim nations following Israeli attacks

Pakistan PM meets Qatari emir, calls for unity among Muslim nations following Israeli attacks
  • Shehbaz Sharif meets Sheikh Tamim bin Hamad Al-Thani after Israel’s Sept. 9 strikes against Hamas in Doha
  • Both leaders agree to remain in close contact in view of unfolding regional situation, says Pakistan PM’s Office 

ISLAMABAD: Prime Minister Shehbaz Sharif this week met Qatar’s emir Sheikh Tamim bin Hamad Al-Thani, condemning Israel’s airstrikes in Doha and calling for unity among Muslim nations in the face of increasing tensions in the Middle East. 

Sharif arrived in Doha on Monday to attend the emergency Arab-Islamic summit organized after Israel targeted Hamas leaders in the Qatari capital on Sept. 9. The strike, which Hamas says killed five of its members but not its leadership, prompted Arab Gulf states to forge a united front against the Israeli attack at the summit. 

The Pakistani prime minister met Al-Thani on the sidelines of the summit on Monday, the Prime Minister’s Office (PMO) said in a statement. He was accompanied by Deputy PM Ishaq Dar and Army Chief Field Marshal Syed Asim Munir.

“The Prime Minister stressed that Israel’s aggression in the Middle East must be stopped immediately, and unity within the Ummah was vitally important, in the face of repeated Israeli provocations,” the PMO said.

Sharif expressed solidarity with Qatar, describing Israel’s attack as a “flagrant violation” of the Gulf nation’s territorial integrity and sovereignty. 

“His Highness the Emir expressed appreciation for the Prime Minister’s participation in the Emergency Arab-Islamic Summit as well as for his visit to Doha on September 12 to express solidarity with Qatar at this difficult time,” Sharif’s office said. 

It added that both leaders agreed to remain in close contact in view of the unfolding situation in the region.

ARAB-ISLAMIC TASK FORCE

At the summit, Sharif called for the creation of an Arab-Islamic task force to keep Israel’s “expansionist designs” in the Middle East in check, demanding the United Nations suspend the Jewish state’s membership of the global body.

“Pakistan reiterates following essential and urgent steps that Israel must be held accountable for its war crimes against humanity, creation of an Arab Islamic task force to adopt effective measures toward Israeli expansionist designs,” Sharif said.

“We reiterate the OIC’s call to suspend Israel’s membership of the United Nations,” he said, adding that member states should actively consider implementing other appropriate measures against Israel.

Sharif also criticized Israel for its military offensives in Gaza. Since the start of the war in October 2023, Pakistan has repeatedly condemned the offensive that has killed nearly 65,000 people, mostly women and children, and called for accountability of Israel’s “war crimes.”


Pakistan assures Shanghai Electric of resolving issues ‘amicably’ after Chinese giant terminates K-Electric deal

Pakistan assures Shanghai Electric of resolving issues ‘amicably’ after Chinese giant terminates K-Electric deal
Updated 16 September 2025

Pakistan assures Shanghai Electric of resolving issues ‘amicably’ after Chinese giant terminates K-Electric deal

Pakistan assures Shanghai Electric of resolving issues ‘amicably’ after Chinese giant terminates K-Electric deal
  • Shanghai Electric last week terminated $1.8 billion deal to acquire majority shares in Pakistan’s K-Electric power utility company
  • Zardari visits Shanghai Electric’s office, witnesses signing of agreement to establish coal gasification plant in Tharparkar district 

ISLAMABAD: President Asif Ali Zardari this week assured Chinese company Shanghai Electric of resolving all of its outstanding issues “amicably,” days after it terminated a $1.8 billion deal to acquire Pakistan’s K-Electric. 

Shanghai Electric’s board of directors decided to terminate the deal to acquire the Pakistani power utility company on Sept. 9, citing Pakistan’s changing business conditions and K-Electric’s failure to meet conditions. The Chinese company was in talks to acquire the majority stake in KE since 2016, delayed due to regulatory approvals and liquidity constraints as a consequence of mounting circular debt plaguing the country’s power sector.

Zardari arrived in China last Friday for a ten-day official visit to the country, which comes on the heels of Prime Minister Shehbaz Sharif’s trip to China last week. The Pakistani president met Shanghai Electric’s Chairman Wu Lei at the company’s office in Shanghai.

He was accompanied by his daughter and First Lady Aseefa Bhutto Zardari and his son, former foreign minister Bilawal Bhutto Zardari. 

“The President thanked him for the contribution of Shanghai Electric in meeting Pakistan’s energy needs, generating employment and supporting socio-economic development,” state broadcaster Radio Pakistan reported on Monday. 

“He assured Shanghai Electric that any outstanding issues would be resolved amicably and in a spirit of mutual cooperation.”

The state broadcaster said Lei expressed gratitude to the Pakistani government for providing security arrangements to Shanghai Electric employees working in Pakistan. In response, Zardari reaffirmed Pakistan’s commitment to enhancing security measures for Chinese nationals in the country.

Chinese nationals working on various projects in Pakistan have been targeted in attacks conducted by separatist militants in the country. These attacks have worried Beijing, which has pressed Islamabad to provide adequate security to its nationals. 

During his visit, Zardari witnessed the signing of a memorandum of understanding for the establishment of a coal gasification plant in Sindh’s Tharparkar district. The Pakistani president invited Shanghai Electric to explore further investment opportunities to modernize Pakistan’s power transmission and distribution network.

Pakistan’s power sector is riddled with challenges which include frequent and lengthy power outages, high transmission losses, dependence on expensive imported fuels, limited renewable energy sources and most of all, a massive circular debt. The circular debt is a cascade of unpaid government subsidies that results in accumulation of debt on distribution companies.

Pakistan has sought help from international partners to improve its energy infrastructure by modernizing its transmission system and promoting renewable energy projects.


Pakistan’s Punjab initiates survey to assess flood damages as death toll reaches 112

Pakistan’s Punjab initiates survey to assess flood damages as death toll reaches 112
Updated 35 min 45 sec ago

Pakistan’s Punjab initiates survey to assess flood damages as death toll reaches 112

Pakistan’s Punjab initiates survey to assess flood damages as death toll reaches 112
  • Over 4.72 million people, more than 4,700 villages in Punjab affected by floods, says disaster management authority
  • Pakistan’s Sindh says Indus River to remain in “high flood level” at Sukkur for next few days as floods flow downstream

KARACHI: The government in Pakistan’s eastern Punjab province announced on Tuesday it had initiated a survey to assess damages caused by devastating floods, as the death toll from deluges since late August rose to 112. 

Heavy monsoon rains and excess water released by Indian dams caused rivers flowing through Punjab to swell last month. Floodwaters inundated over 4,700 villages in Pakistan’s breadbasket Punjab province, destroying large swathes of standing crops, homes and forcing millions to shift to safer locations. 

Water levels in Punjab’s Ravi, Chenab and Sutlej rivers are on the decline now, as floodwaters head toward the southern Sindh province. The Punjab government says it has launched the largest rescue and relief operation in the province to save stranded citizens and livestock. 

“The recent floods have resulted in 112 civilian deaths in various incidents,” the Punjab Disaster Management Authority (PDMA) said in a report. 

Meanwhile, Punjab Relief Commissioner Nabeel Javed said citizens’ losses will be compensated.

“A survey has been initiated to assess the damages caused by the floods,” Javed said. 

Giving a breakdown of the losses inflicted by the floods so far, the relief commissioner said over 4.72 million people have been affected by the deluges. He said in severely flood-affected districts, 363 relief camps and 446 medical camps have been set up.

“A total of 2.608 million people trapped in the floods have been relocated to safe places,” Javed said. 

INDUS RIVER AT ‘HIGH FLOOD LEVEL’

Meanwhile, the PDMA Sindh warned on Monday that River Indus at Sukkur will remain in “high flood” for the next few days. Sindh has been bracing for floods as water levels continue to rise at the Guddu and Sukkur barrages in southern Pakistan. 

The National Disaster Management Authority (NDMA) reported on Monday that the water inflow at Guddu Barrage in Kashmore district was recorded at 624,456 cusecs while the outflow was recorded at 594,936 cusecs. The NDMA said the water inflow at Sukkur Barrage was recorded at 556,217 cusecs while the outflow was recorded at 502,667 cusecs. 

Separately, the NDMA said in its latest situation report on Sept. 15 that the death toll from rain-related incidents since Jun. 26 had surged to 992, with the highest deaths reported in Khyber Pakhtunkhwa (KP), 504, followed by Punjab with 290, Sindh with 80, northern Gilgit-Baltistan (GB) with 41, Azad Kashmir with 38, Balochistan with 30 and Islamabad with nine casualties. 

DENGUE OUTBREAKS

As Punjab’s swollen rivers inundate thousands of villages and settlements in the province, Pakistani authorities have warned of dengue outbreaks in the country’s major cities and other flood-affected areas. 

Dengue is a viral infection caused by the dengue virus, which is transmitted to humans through the bite of infected mosquitoes. While many dengue infections are asymptomatic or produce only mild illness, the virus can occasionally cause more severe cases, and even death.

In an alert issued on Sept. 15, the meteorological department warned that floods have left behind stagnant water and poor drainage, creating conducive environmental conditions for mosquito breeding and transmission of dengue.

“The combined impact of favorable weather thresholds and flood-related waterlogging has made condition conducive from 20th September 2025 for the dengue onset,” the Met Department said. “It is predicted that this season poses an unprecedentedly high-risk of a severe dengue outbreak, particularly in ten major cities of Pakistan i.e., Karachi, Lahore, Islamabad, Faisalabad, Sialkot, Rawalpindi, Peshawar, Sukkur, Hyderabad and Multan as well as in flood affected areas across the country.”

Despite contributing only 1 percent to global greenhouse gas emissions, Pakistan is consistently ranked among countries affected the most by climate change. Devastating floods in 2022 left nearly 1,700 people dead, one-third of the country submerged at one point in time and inflicted damages of over $30 billion, Pakistan estimated. 


Pakistan’s BankIslami recognized as ‘Best Islamic Banking Brand’ at global finance awards

Pakistan’s BankIslami recognized as ‘Best Islamic Banking Brand’ at global finance awards
Updated 16 September 2025

Pakistan’s BankIslami recognized as ‘Best Islamic Banking Brand’ at global finance awards

Pakistan’s BankIslami recognized as ‘Best Islamic Banking Brand’ at global finance awards
  • The development comes months after Pakistan said Islamic banking assets had reached for the first time $40.7 billion by the end of March 2025
  • BankIslami says it remains committed to rolling out new Shariah-compliant tools, reaching more households through technology-driven solutions

KARACHI: Pakistan’s BankIslami has been named the ‘Best Islamic Banking Brand’ at the Global Islamic Finance Awards (GIFA) 2025 in Kuala Lumpur, Malaysia, the bank said on Monday, earning international recognition for innovation, customer-centric services and contribution to the growth of Islamic finance in the country.

GIFA is a globally recognized platform that honors institutions and individuals for contributions to Islamic banking and finance, according to a BankIslami statement.

It recognized BankIslami’s efforts to advance Islamic banking through awareness and access initiatives, interest-free financial solutions, and programs to expand financial inclusion.

The bank has played a pioneering role in developing Pakistan’s Islamic finance landscape, from deploying biometric ATMs to introducing Islamic digital banking solutions.

“Advancing Riba-free (interest-free) banking in Pakistan is a national cause, and as a financial institution, we see it as our responsibility to join hands and contribute,” BankIslami President Rizwan Ata was quoted as saying.

“We remain dedicated to our mission of Saving Humanity from Riba by expanding access, keeping products simple and transparent, and delivering service that earns trust.”

In May this year, the Pakistani central bank said Islamic banking assets had for the first time reached Rs11.5 trillion ($40.7 billion) by the end of March 2025 as the country actively moved toward implementing a fully Shariah-compliant financial system.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027. Following the order, the government and the State Bank have taken several measures ranging from changing laws to issuing sukuk Islamic bonds to replace interest-based treasury bills and investment bonds.

With a network of more than 500 branches in over 210 cities, it offers Shariah-compliant financial products for individuals and businesses, including Hajj savings plans and small-media enterprise (SME) financing.

“BankIslami remains committed to advancing its mission by rolling out new Shariah-compliant financial tools, extending reach to more Pakistani households through technology-driven solutions, building partnerships with community-based organizations, and promoting financial literacy for inclusive and ethical banking,” it said.