Pakistan, Iran Agree to Establish Joint Free Trade Zone at Rimdan-Gabd Border

ISLAMABAD/TEHRAN — Pakistan and Iran have agreed to establish a Joint Free Trade Zone at the Rimdan-Gabd border crossing. The agreement was reached during the visit of Iranian President Dr. Masoud Pezeshkian to Islamabad, accompanied by a high-level delegation.

According to official sources, the decision aims to promote bilateral trade, facilitate cross-border investment, and develop modern infrastructure at the strategic border point.

The agreement was finalized during discussions between the Secretary of Iran’s High Council for Free and Special Economic Zones and Pakistan’s Minister of Commerce. It was mutually decided that within two weeks, a Pakistani delegation would visit the Rimdan border area to assess ground realities, identify investment opportunities, and outline a framework for operational collaboration.

The two sides also explored practical aspects of the Joint Free Zone, including:

• Administrative mechanisms
• Customs and tax incentives
• Attraction of local and foreign investment
• Provision of necessary utilities and logistics infrastructure

The proposed free zone is expected to serve as a gateway for regional trade, providing a seamless route for goods movement between South Asia and the Middle East.

Separately, the Iranian Secretary held an online meeting with Ms. Iqbal, Secretary of Pakistan’s Special Economic Zones and Investment Committee. He emphasized that President Pezeshkian’s foreign policy prioritizes enhanced cooperation with neighboring countries.

“Iran’s economic diplomacy is focused on regional integration, and we see this free zone as a milestone for long-term partnership with Pakistan,” the Iranian official noted.

He further explained that following the signing of a cooperation agreement, approval from both Iran’s Cabinet and Parliament will be required to formally launch the joint free zone initiative.