Pakistani business community hopes for an early end to the Iran war to restore trade and energy cooperation

BlockBeats News, July 22—According to The New York Times, the ongoing escalation of the Iran conflict is putting tremendous pressure on Pakistan’s business community. With the breakdown of the ceasefire agreement, large quantities of goods such as mangoes and textiles destined for Iran are stranded at the border, with some fruit already rotting and spoiling. Business leaders stated that peace would not only lead to energy prices falling, but also give Pakistan the opportunity to fully develop the trade potential across its approximately 900-kilometer border with Iran.

Due to strained relations with India and Afghanistan, Pakistan’s economy continues to face pressure. The business community originally hoped to alleviate their difficulties by deepening trade with Iran. However, the long-term U.S. sanctions against Iran have severely restricted banking settlements, energy cooperation, and trade between the two countries, forcing much of the trade to rely on barter, transshipment through third countries, or smuggling channels.

Pakistan's business circles believe that if sanctions on Iran are eased in the future, trade between the two countries could expand significantly. Pakistan could export rice, textiles, pharmaceuticals, and medical equipment to Iran, while Iran could provide Pakistan with cheaper oil and natural gas, as well as create opportunities for Pakistani enterprises to participate in Iran's post-war reconstruction. At present, several entrepreneurs have stated that they will continue to take a wait-and-see approach until the situation becomes clearer.