0321 GMT October 15, 2019
The agreement was reached during a visit by the regional director of Iran's Rail Transportation Company, Mostafa Davoudi to Pakistan, Press TV reported.
The two sides agreed to recommence rail freight transport between Zahedan, the provincial capital of Sistan-Baluchistan in Iran's southeast and Quetta, the main city in Pakistan's southwestern Balochistan Province.
The deal reopens route for weekly freight train transport which has mostly been blocked over the past few years.
In March, Iranian President Hassan Rouhani paid a two-day state visit to Pakistan. His trip was aimed at enhancing trade and economic ties with the neighboring country.
President Rouhani described Iran's relations with Pakistan as strategic, adding that the two nations shared many commonalities.
Tehran and Islamabad agreed to adopt necessary strategies and make use of their capacities to increase trade between the two sides.
Speaking at a business conference with Rouhani on March 26, Pakistani Prime Minister Nawaz Sharif said Islamabad and Tehran had signed an agreement to increase annual trade to $5 billion by 2021.
Trade between Pakistan and Iran fell to $432 million in 2010-11 from $1.32 billion in 2008-09, according to the Pakistan's Trade Development Authority.
In a ceremony attended by the Iranian president and the Pakistani prime minister, the two countries signed six documents on cooperation in the fields of trade and commerce, insurance, culture, higher education, health and medicine.