Pakistan, Aug. 5 -- Iran said on Tuesday negotiations on a long-discussed free trade agreement (FTA) with Pakistan were progressing well and could be concluded "in the near future," as senior officials from the two neighboring countries met in Islamabad to deepen economic ties and advance a target of increasing bilateral trade to $10 billion.

Pakistan and Iran have sought for years to expand economic cooperation despite sharing a 900-kilometer (560-mile) border and longstanding cultural and political ties. Bilateral trade has remained well below the two countries' ambitions because of security concerns along the border, international sanctions on Iran, banking restrictions and limited transport infrastructure. During late Iranian Preside...