ISLAMABAD: Pakistan and Iran have reaffirmed their commitment to significantly strengthen economic cooperation by increasing bilateral trade to $10 billion and accelerating efforts to finalize a long-awaited Free Trade Agreement (FTA). The understanding was reached during the 10th meeting of the Pakistan-Iran Joint Trade Committee, held in Islamabad on Tuesday. The session was jointly chaired by Federal Minister for Commerce Jam Kamal Khan and Iranian Minister for Industry, Mine and Trade Dr. Mohammad Atabak, with senior officials from both countries participating in discussions aimed at expanding trade and investment ties. During the meeting, both sides reviewed the current state of bilateral trade and explored practical measures to unlock its full potential. The two countries agreed that stronger economic integration, improved connectivity, and enhanced cross-border cooperation are essential for achieving the ambitious trade target of $10 billion. Speaking on the occasion, Commerce Minister Jam Kamal said Pakistan and Iran enjoy longstanding historical, cultural, and religious ties, but stressed that these relations should now be translated into a robust economic partnership. He emphasized that expanding trade and investment would bring mutual economic benefits and contribute to regional prosperity. The minister underscored the importance of completing the Pakistan-Iran Free Trade Agreement at the earliest opportunity, describing it as a key step toward facilitating commerce between the neighboring countries. He also called for the removal of bottlenecks affecting border logistics, customs procedures, and cargo movement to ensure smoother and faster trade flows. Jam Kamal noted that bilateral trade could be further enhanced through the development of joint border markets, greater use of electronic data interchange systems, and closer coordination between relevant government agencies. He said modernizing trade infrastructure and simplifying customs procedures would help businesses on both sides benefit from increased commercial activity. The Joint Trade Committee also agreed to formulate a practical roadmap aimed at strengthening economic cooperation across multiple sectors. The roadmap will focus on trade facilitation, infrastructure development, logistics, and investment opportunities while encouraging closer collaboration between the public and private sectors. Iranian Minister Dr. Mohammad Atabak described Pakistan as one of Iran’s key long-term strategic trade partners and expressed confidence that bilateral economic relations could expand considerably in the coming years. He highlighted the importance of increasing regional trade and logistics cooperation, particularly by utilizing Pakistan’s Karachi and Gwadar ports to improve connectivity and facilitate the movement of goods. Dr. Atabak also voiced optimism about the early conclusion of the Pakistan-Iran Free Trade Agreement, saying it would create new opportunities for businesses in both countries. He added that cooperation in electricity trade, transport networks, and regional connectivity projects could open new avenues for economic growth and strengthen commercial links across the region.

The federal government has taken a significant step towards implementing its newly introduced contributory pension system by approving 16 eligible Pension Fund Managers (PFMs) under the Defined Contribution Pension Fund Scheme-2024 for newly recruited federal employees. According to an official notification issued by the Ministry of Finance, the approved Pension Fund Managers have successfully completed all required legal and administrative agreements with the federal government. Following the completion of these formalities, they are now authorized to receive, manage, and invest pension contributions under the new pension framework. The move marks an important milestone in the government’s broader pension reform agenda, aimed at ensuring the long-term financial sustainability of the country’s pension system while reducing the growing fiscal burden associated with traditional pension payments. The Defined Contribution Pension Fund Scheme-2024 was introduced under the Federal Government Defined Contribution Pension Fund Scheme Rules, 2024, replacing the long-standing defined benefit pension model for newly appointed federal government employees. Under the previous system, retired employees received pensions funded entirely by the government. The new framework, however, shifts to a contributory model in which both employees and the government make regular monthly contributions toward retirement savings. As per the scheme, every newly recruited federal employee will contribute 10 percent of their pensionable salary each month to an individual pension account. In addition, the federal government will contribute 12 percent of the employee’s pensionable salary, creating a combined retirement fund that will be professionally managed by the approved Pension Fund Managers. The accumulated contributions will be invested in a diversified portfolio of financial instruments and investment opportunities with the objective of generating long-term returns. Upon retirement, employees will receive pension benefits based on the total value of their accumulated savings and the investment returns earned over the course of their service, rather than relying on a fixed government-funded pension. Officials believe the reform will help establish a financially sustainable pension system by encouraging long-term savings and reducing future pension liabilities on the national exchequer. The appointment of the 16 Pension Fund Managers is expected to facilitate the smooth rollout of the scheme and provide newly inducted federal employees with multiple professionally managed investment options for their retirement savings.

The federal government has extended the latest reduction in petroleum prices by lowering the cost of kerosene oil, providing additional relief to consumers who rely on the fuel for household and commercial use, particularly in remote and off-grid areas. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the price of kerosene has been reduced by Rs3.58 per litre. Following the latest revision, the new retail price of kerosene has been fixed at Rs301.64 per litre, down from the previous rate of Rs305.22 per litre. The reduction comes as part of the government’s broader revision of petroleum product prices aimed at passing on the benefit of changes in international oil markets to consumers. Earlier, the Petroleum Division announced fresh prices for major petroleum products effective from August 4, confirming a decrease in the prices of both petrol and high-speed diesel. Under the revised rates, petrol has become cheaper by Rs4.80 per litre, bringing its new price down to Rs331.95 per litre. Likewise, the price of high-speed diesel (HSD) has been reduced by Rs2.45 per litre, setting the new rate at Rs389.93 per litre. The latest cuts are expected to provide modest relief to motorists, transporters, and businesses facing high operating costs, while the reduction in kerosene prices is likely to benefit households in regions where the fuel remains a primary source for cooking, heating, and lighting.