Anadolu Agency� - Pakistan and Iran on Tuesday agreed to enhance their trade relations and improve rail connectivity to achieve a target of $5 billion annual bilateral trade, foreign office said

The decision was made at a bilateral political consultation meeting attended by Pakistan�s Foreign Secretary Tehmina Janjua and Iran�s Deputy Foreign Minister Syed Abbas Araghchi in Pakistan capital's Islamabad.

"Pakistan and Iran have agreed to enhance bilateral trade to achieve the annual target of $5 billion through facilitation of business communities and scaling down all trade barriers," Mohammad Faisal, Foreign Ministry spokesman, said in a statement.

Both countries also agreed that their Joint Economic Commission should meet early next year.

During the meeting, both sides discussed the situation in Afghanistan and reiterated their full support for an Afghan-owned, Afghan-led peace and reconciliation process.

"Pakistan and Iran have been affected adversely by the 40-year conflict and instability in Afghanistan, which has resulted in serious challenges including millions of Afghan refugees, the narcotics trade, illegal migration, and the rise of new terrorist outfits like Daesh in the war-ridden country," Faisal added.

Both sides stressed a coordinated approach to safeguard the core interests of both countries in the current situation, the statement concluded.