Iran and Pakistan agreed to increase their bilateral trade to $10 billion annually and speed up their current projects, their officials said.
Current bilateral trade volume is about $1.5 billion.
The agreements came following Monday meetings between visiting Pakistani Prime Minister Syed Yousuf Raza Gilani and Iranian First Vice President Mohammad Reza Rahimi, Iran's Mehr News Agency reported.
Gilani arrived in Tehran Sunday, leading a high-ranking delegation including Pakistani Foreign Minister Hina Rabbani Khar.
Rahimi was quoted as saying Iran and Pakistan should tighten security along their border. He said implementing the proposed Iran-Pakistan gas pipeline project would help strengthen bilateral relations.
Under the pipeline project, which is opposed by the United States, Iran will supply as much as 750 million cubic feet of its natural gas to Pakistan by 2015.
Rahimi told Gilani their countries, along with Afghanistan, are capable of working out a solution to the Afghanistan issue.
Iranian President Mahmoud Ahmadinejad, who met with Gilani Monday, said the common enemies of Iran and Pakistan seek to undermine security and hinder progress in the region , the news agency said. The Iranian leader said Tehran and Islamabad should make more serious efforts to root out terrorism.
Gilani praised Pakistan's efforts in fighting terrorism and extremism and called for increased cooperation between Pakistan and Iran in this regard, the report said.
Pakistani media reported Gilani and Ahmadinejad agreed the gas pipeline project, as well as the importation of 1,000 megawatts of electricity from Iran should be expedited to resolve Pakistan's acute shortage of energy.