Gholamhossein Mousavi, director of investment development and business environment at the Secretariat of Iran’s High Council of Free and Special Economic Zones, put forward the proposal during an online meeting to review and advance bilateral cooperation on the planned free zone, according to Shada, the news outlet of Iran’s Ministry of Economic Affairs and Finance.

Mousavi stressed the need to draw on the two countries’ legal frameworks, economic potential and investment capacities to develop an effective implementation model for the proposed initiative.

He said existing investment, tax and customs-related incentives and legal provisions in both countries could help facilitate cross-border trade, attract investment and expand economic cooperation in the Rimdan–Gabd area.

Mousavi also highlighted the cultural, social and linguistic ties between communities on both sides of the border, saying these shared characteristics, combined with the area’s strategic location and transit potential, could support stronger cross-border economic links and increased bilateral trade.

He identified private-sector participation as a key requirement for designing the investment framework and operational model of the proposed zone. Developing the initiative as an integrated logistics, industrial and commercial park, he said, could create opportunities for business expansion, investment mobilisation and the development of joint value chains between Iran and Pakistan.

The proposal could also draw on regional economic and financial frameworks, including the China–Pakistan Economic Corridor (CPEC), the Economic Cooperation Organization (ECO) and the Islamic Development Bank, Mousavi said.

He further stressed the importance of establishing financial and legal arrangements consistent with the laws and regulations of both countries. Potential mechanisms for consideration include project companies, commodity swaps, and the provision of equipment, machinery, services and technical know-how, subject to applicable regulatory requirements.

Mousavi identified the development of logistics infrastructure and services, the expansion of industrial and commercial activities, and the creation of favourable conditions for private investment as the main priorities for advancing the proposed Iran–Pakistan joint free zone in Rimdan–Gabd.

The initiative remains at the proposal and planning stage, with the development of an implementation framework and the mobilisation of private-sector investment identified as key considerations.