Pakistan and Iran have signed a memorandum of understanding (MoU) aimed at increasing their bilateral trade volume to $10 billion. The agreement comes as Pakistan seeks to enhance trade and investment while navigating economic recovery under a $7 billion International Monetary Fund (IMF) program, secured in September of last year. In the last fiscal year, bilateral trade between the two countries reached $2.8 billion, according to Radio Pakistan. The MoU was signed during a high-level meeting between the Federation of Pakistan Chambers of Commerce and Industry and Iran’s Mashhad Chamber of Commerce and Industry. During the meeting, Iran assured Pakistan that it would reduce business visa fees and facilitate trade activities to promote deeper economic cooperation. This move is part of both countries’ efforts to strengthen ties, especially after years of tensions, including a military exchange of airstrikes in January 2024 over border instability and militancy concerns. The agreement builds on a series of diplomatic efforts to improve relations. Iran’s late president Ebrahim Raisi visited Pakistan in April 2024, where both countries signed multiple MoUs across sectors like trade, agriculture, health, and science. Raisi had also stressed the importance of increasing trade between the two nations, describing their current trade volume as “not acceptable.” Separately, a nine-member International Monetary Fund (IMF) mission, led by Nathan Porter, is set to arrive in Pakistan on March 3 to conduct a crucial economic review. The talks will continue until March 15 and will play a key role in shaping the country’s 2025-26 fiscal policies. According to finance ministry sources, the negotiations will be held in two phases-technical-level discussions followed by policy-level talks. The mission will engage with officials from the finance ministry, State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority (OGRA), and National Electric Power Regulatory Authority (NEPRA), among others. A key issue on the agenda is tax relief for the salaried class, which sources say remains conditional on IMF approval. The review will also assess Pakistan’s budgetary framework, fiscal consolidation efforts, and revenue generation measures. Additionally, separate discussions will be held with all four provinces to align fiscal targets. Pakistan’s economic policies, including taxation, energy pricing, and structural reforms, are expected to be scrutinised closely by the IMF before any further financial commitments are made. Previously, a technical delegation from the International Monetary Fund (IMF) has arrived in Islamabad to discuss climate financing and related policy measures with Pakistani officials on Monday.