Pakistan allows exports via Iran to Central Asia
Government grants temporary waiver to boost regional trade
Amid Iran US war, Pakistan on Saturday approved a temporary policy allowing exports to Central Asian states and Azerbaijan through Iran, removing key financial conditions to facilitate trade flows.
The Ministry of Commerce said the federal government has granted a temporary exemption from bank guarantee and letter of credit requirements for exports routed via Iran. The decision aims to ease constraints faced by exporters and accelerate regional trade integration.
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The exemption will remain in effect for three months, from March 24 to June 21, 2026, according to the minister. Officials said the move is designed to provide immediate relief to exporters while testing new trade corridors through land routes.
Under the revised framework, exporters can ship goods overland to Iran, Azerbaijan, and other Central Asian countries without mandatory financial instruments. However, the condition to repatriate export proceeds within the prescribed time under State Bank regulations will remain in place.
Jam Kamal Khan said the government is prioritizing export growth and trader facilitation through practical policy interventions. He added that reducing procedural barriers will help Pakistani businesses access new regional markets more efficiently.
The ministry confirmed that a wide range of goods will be eligible for export under the relaxation. These include rice, seafood, potatoes, meat, onions, maize, and fruits destined for Iran and beyond.
Pharmaceutical products and tents have also been included in the exemption, reflecting efforts to remove bottlenecks in high-potential export sectors. The minister said addressing hurdles in pharmaceutical exports remains a key priority for the government.
Officials noted that allowing transit through Iran will significantly cut transportation time and logistics costs for exporters. The land route is expected to offer a faster and more economical alternative compared to traditional shipping channels.
The Ministry of Commerce said the initiative will strengthen trade linkages across the region and improve connectivity with landlocked Central Asian economies. Enhanced access is expected to support higher trade volumes and diversify Pakistan’s export destinations.
Jam Kamal Khan said the government is mobilizing all available resources to expand regional connectivity and increase trade volumes. He added that sustained export growth is essential for achieving long-term economic stability.
The minister emphasized that Pakistan can now export rice to Central Asia and Azerbaijan via Iran, opening new opportunities for the agriculture sector. He said the policy shift reflects a broader strategy to integrate Pakistan into regional supply chains.
The government expects the temporary relaxation to boost export activity in the coming months while providing valuable insights for long-term policy decisions. Authorities will assess the impact of the measure before considering any extension or permanent changes.
Pakistan’s push to expand trade through Iran signals a renewed focus on regional commerce, with policymakers aiming to lower costs, improve efficiency, and enhance competitiveness in international markets.