ISLAMABAD: Pakistan and Iran have pledged to continue discussions and develop action plans to overcome the existing trade barriers and streamline regulations to realise the full potential of bilateral trade.

The understanding was reached between Commerce Minister Jam Kamal Khan and Iran`s Minister for Industry, Mining and Trade Mohammad Atabak on the sidelines of the Shanghai Cooperation Organisation (SCO) summit on Wednesday.

Both ministers held a productive meeting committed to facilitating smoother business interactions between the two countries. During the meeting, the Iranian minister invited his Pakistani counterpart to visit Iran, an official announcement said on Wednesday.

They emphasised the need for boosting economic ties through increased bilateral trade and investment. They also explored avenues for collaborationin sectors of mutual interest.

It was pointed out that there is enormous potential for bilateral trade; however, it is yet to be realised. They discussed the potential for Pakistan and Iran to cooperate more closely in the regional market and beyond, leveraging the SCO platform to facilitate trade growth and regional stability.

According to the announcement, Mr Kamal highlighted the strategic location of both brotherly countries as a gateway to Central Asia and the Middle East. He stressed the need for stronger economic cooperation between Pakistan and Iran to enhance bilateral trade and promote prosperity in the wider region.

The meeting underscored the importance ofregionalcooperation through platforms like SCO as Pakistan and Iran look to strengthen ties and enhance their roles in the global market.

Trade with Iran is chiefly barterbased, and no official data is available to register thefullpotentialof trade.