Pakistan, Iran reaffirm $10b trade goal as regional tensions dominate high-level talks

• Iranian Interior Minister Eskandar Momeni, Mohsin Naqvi discuss trade expansion and evolving regional security

• Visiting minister to meet PM Shehbaz, Field Marshal Asim Munir during key Islamabad visit

• Pakistan reiterates commitment to sustaining diplomacy as US-Iran tensions threaten peace efforts

• Talks focus on border infrastructure, economic cooperation and deepening bilateral engagement

 ISLAMABAD: Pakistan and Iran on Monday reaffirmed their commitment to raising bilateral trade to $10 billion, as Iranian Interior Minister Eskandar Momeni held high-level talks with Federal Interior Minister Mohsin Naqvi in Islamabad, with both sides also exchanging views on the evolving regional security situation amid renewed tensions between Tehran and Washington.

Momeni's visit comes at a critical juncture as renewed hostilities between the United States and Iran, after more than a week of fighting, have threatened to derail Pakistan-led diplomatic efforts to end the conflict that began in February and have heightened concerns over the possibility of a wider regional escalation.

The visit also underscores the growing momentum in Pakistan-Iran relations, with the two neighbouring countries having signed several agreements and memorandums of understanding in recent months aimed at increasing bilateral trade from the existing around $3 billion to $10 billion.

Speaking after his meeting with Interior Minister Mohsin Naqvi, Momeni said achieving the ambitious trade target would require a significant increase in cross-border commercial activity and corresponding improvements in infrastructure on both sides of the border.

وفاقی وزیرِ داخلہ محسن نقوی کی ایرانی ہم منصب اسکندر مومنی کے ہمراہ میڈیا سے گفتگو pic.twitter.com/L0kt79QMU7

— Ministry of Interior GoP (@MOIofficialGoP) July 20, 2026

"To achieve this goal [of $10 billion trade volume], in practice around 2,000 trucks or containers need to move between the two countries every day on average. At present, only about 20 percent of that target is being realized," Momeni said, according to a statement issued by Pakistan's Interior Ministry.

He stressed that both countries would need to develop the necessary infrastructure to facilitate increased trade flows.

"Therefore, the necessary infrastructure must be provided on both sides of the border. This is one of the topics under discussion," he said.

Referring to the broader regional environment, the Iranian minister added: "Naturally, regional developments are also among the subjects that will come up on this trip."

According to the Interior Ministry, Momeni is accompanied by a high-level delegation comprising the Governor-General of Iran's Sistan and Baluchestan Province, the Iranian Deputy Interior Minister, the Deputy Minister for Urban Development and Transport, and the head of the National Iranian Oil Company.

The ministry said the visiting minister is also scheduled to meet Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of the Army Staff Field Marshal Syed Asim Munir during his visit to Pakistan.

ایرانی وزیر داخلہ اسکندر مومنی وزیر اعظم محمد شہباز شریف اور فیلڈ مارشل سید عاصم منیر سے ملاقات کریں گے
وفاقی وزیرداخلہ محسن نقوی سے ایرانی ہم منصب اسکندر مومنی سے ملاقات

اپنے بھائی محسن نقوی سے دوبارہ ملاقات کرکے بہت خوشی ہوئی ہے۔ ایرانی وزیر داخلہ

— Ministry of Interior GoP (@MOIofficialGoP) July 20, 2026

Pakistan, alongside Qatar and other regional partners, spearheaded months of diplomatic engagement that culminated in the Islamabad Memorandum of Understanding between the United States and Iran in June.

The agreement committed both Washington and Tehran to cease hostilities and begin negotiations on broader bilateral disputes. It was followed by talks in Bürgenstock, Switzerland, where officials established a High-Level Committee and adopted a 60-day roadmap covering negotiations on Iran's nuclear programme, sanctions relief and a dispute-resolution mechanism.

However, that diplomatic process has come under renewed strain following the latest round of fighting and competing accusations by Washington and Tehran that each side violated the agreement. Despite the renewed tensions, Pakistan has maintained that diplomatic channels remain open and reiterated its commitment to facilitating dialogue between the two countries.

Visit Would Contribute Positively To Regional Diplomacy

Welcoming his Iranian counterpart to Islamabad, Interior Minister Mohsin Naqvi expressed hope that the visit would contribute positively to regional diplomacy.

"I hope that Iranian Interior Minister Eskandar Momeni has brought good news," Naqvi was quoted as saying by the Interior Ministry.

ایران کے وزیر داخلہ اسکندر مومنی اعلی سطح کے وفد کے ہمراہ پاکستان کے دورہ پر اسلام آباد پہنچ گئے

وفاقی وزیرداخلہ محسن نقوی نے ائرپورٹ پر اپنے ایرانی ہم منصب اسکندر مومنی کا خیر مقدم کیا

وزیر مملکت داخلہ طلال چوہدری نے ایرانی وزیر داخلہ اسکندر مومنی کو گلدستہ پیش کیا pic.twitter.com/vUYuuMfaJV

— Ministry of Interior GoP (@MOIofficialGoP) July 20, 2026

He added: "I also hope for progress on the regional situation."

The visit also reflects Pakistan's increasingly delicate diplomatic position in a rapidly evolving regional landscape. While Islamabad has actively sought to facilitate dialogue between Tehran and Washington, it also maintains a longstanding strategic partnership with Saudi Arabia, including close security cooperation under a mutual defence framework.

At the same time, renewed attacks by Yemen's Iran-aligned Houthi movement on Saudi Arabia have heightened concerns about the risk of a broader regional conflict, adding further complexity to Pakistan's efforts to maintain balanced relations with both Tehran and Riyadh.

Pakistan has consistently called on all parties to exercise restraint and has repeatedly maintained that sustained dialogue and diplomacy remain the only viable path to preventing a wider regional conflict and preserving regional peace and stability.