At an impressive business outreach initiative, a high-level Iranian delegation invited Pakistani entrepreneurs to explore investment opportunities in Iran’s rapidly developing free trade zones – Kish and Chabahar among them – during President Masoud Pezeshkian’s state visit to Pakistan. Led by Reza Masrour from Iran’s Supreme Council of Free Trade-Industrial and Special Economic Zones, this delegation met with officials from Islamabad Chamber of Commerce and Industry as well as prominent Pakistani business leaders during an official state visit by Pezeshkian himself on August 3 2025 iranpress.com
Masrour provided a roadmap for greater economic cooperation by proposing the formation of a Memorandum of Understanding between Chabahar Free Trade-Industrial Zone and Pakistan Chamber of Commerce and Industry. Under this proposal, organizing joint exhibitions and cross-border trade initiatives, as well as plans to establish a joint border free zone near Iran-Pakistan frontier Rimdan Gabd would all take place as well as plans to establish joint border free zone in Rimdan Gabd and Rimdan Gabd (Wikipedia +2) in exchange for economic cooperation and trade initiatives between Iran-Pakistan border free zones (Wiki+2Wiki +2 IRNA English +2 W3 W4W8+2 W3+2 W3 +2 W3 +2 W3W3 W3W3W3 W3 +2Wikipe IRANPRESS +2 Iranpress.com +2 W3
Pakistani business representatives and the chamber’s leadership reacted positively, inviting Iranian officials to participate in an industrial expo hosted by Islamabad next month. Both sides showed great enthusiasm in collaboration across multiple fields such as trade, industrial investment, agriculture and energy while reinforcing mutual solidarity amid recent geopolitical tensions (IRNA English).
Iran Is Utilizing FTZ/SEZs To Drive Economic Development
Iran has taken advantage of Iran’s extensive network of free trade and special economic zones (FTZ/SEZ), such as Kish Island, Chabahar, Qeshm, Arvand, and Aras zones, to spur investment and economic development. These zones offer attractive incentives such as long tax holidays (up to 20 years), complete foreign ownership rights with visa exemptions for investors, flexible banking products that cater specifically to attract foreign capital as well as legal protections designed specifically to attract investors. Wikipedia.
Chabahar stands out as an outstanding location on the Gulf of Oman, placing Iran as a maritime gateway to South Asia, Central Asia, and beyond. Additionally, its closeness to Pakistan’s Gwadar enhances opportunities for complementary logistics and transit cooperation, according to Wikipedia.
Iran and Pakistan Have Set Economic Aims and Trade Targets
Iranian and Pakistani officials made clear during joint press conferences their aim of increasing annual bilateral trade from US $3 billion currently to US $8-10 billion within five years, via border markets, joint exhibitions and new corridor frameworks. Trade facilitation through border markets was highlighted as key element to reaching this growth trajectory – Arab News added +1
Commerce Minister Jam Kamal Khan noted that momentum must now be translated into tangible trade outcomes, proposing action plans such as designating sector-specific delegations, B2B events and expedited regulatory facilitation for investor participation (Dunya News).
Building Economic Bridges Through Free Zones
Iran’s proposal provides Pakistani businesses with an avenue for expanding into new markets while taking advantage of structured investment environments, like Kish Free Zone in Iran which currently handles over 15% of Iran’s imports and attracts over 12 million visitors per year – Kish is already handling 15% of Iran’s imports and attracting 12 million annual visitors alone! Kish provides a blueprint for enterprise expansion with its established consumer infrastructure and regulatory flexibility (Wikipedia).
Chabahar’s development blueprint aligns perfectly with transit corridor aspirations – supporting investments such as transit and logistics investments, industrial parks and energy-related projects which serve as anchor points for regional connectivity.
Regional Security and Connectivity Context
Economic zones within Pakistan’s Balochistan region can also serve to improve regional stability. Agreements establishing free trade zones at border crossings–like Rimdan-Gabd–have been used as tools to achieve wider goals of border peace, anti-smuggling cooperation, and anti-militancy measures (Wikipedia/iranpress.com, Apnews.com).
Following these meetings, Pakistani officials confirmed that they will send a delegation to Iran’s Rimdan border crossing area within two weeks in order to assess its feasibility as a joint free zone, considering factors like area size, infrastructure needs, investment models and regulatory frameworks (iranpress.com).
Iran and Pakistan now appear poised to turn diplomatic goodwill into strategic economic partnerships. Investment frameworks have already been discussed between them while high-level political alignment exists – signifying real economic integration rather than rhetoric. A proposed free zone collaboration marks this shift away from rhetoric towards economic integration.
Summary: Iran has extended a formal invitation to Pakistani businesspeople interested in investing in its free zones – particularly Kish and Chabahar – as potential investment sites.
Chabahar FTZ and Pakistan Chamber of Commerce. The invitation also involves the establishment of a Memorandum of Understanding between them.
Plans call for joint industrial exhibitions, cross-border trade events and the creation of a free zone at Rimdan-Gabd.
FTZs such as Kish and Chabahar offer many compelling incentives: tax holidays, full foreign ownership rights, visa-free entry and legal protections.
Pakistan and Iran aim to increase bilateral trade to between US $8-10 billion each year.
Implementation is dependent upon feasibility visits, regulatory alignment and infrastructure development – with early indicators showing strong mutual interest.
The initiative marks an historic turn in Pakistan-Iran relations, connecting traditional links with modern economic ambition.