Pakistan grants Iran route export exemption
Business
Pakistan allows temporary export exemption via Iran route, easing financial requirements to boost regional trade and reduce costs for exporters.
ISLAMABAD (Dunya News) - The government of Pakistan has granted a temporary exemption from bank guarantee and letter of credit requirements for exports routed through Iran, in a move aimed at boosting regional trade.
According to the Ministry of Commerce, exporters will be allowed to ship goods via land routes to Iran, Azerbaijan, and Central Asian states without mandatory financial instruments. The special relaxation will remain in effect for three months, from March 24 to June 21, 2026.
The exemption is designed to facilitate exporters and strengthen regional trade links. A wide range of goods—including rice, seafood, potatoes, meat, onions, maize, and fruits—can be exported to Iran under this policy. Pharmaceutical products and tents are also included in the relaxation.
While exporters will receive partial exemption from State Bank regulations, the requirement to repatriate export earnings within the stipulated time will remain in place. The Ministry of Commerce stated that the initiative would enhance trade connectivity across the region.
Federal Minister for Commerce Jam Kamal Khan said the government is committed to promoting exports and easing business processes. He added that Pakistan will now be able to export rice to Central Asia and Azerbaijan via Iran, while removing barriers in pharmaceutical exports remains a top priority.
He further emphasized that the government is utilizing all available resources to increase regional connectivity and trade volume. Trade through Iran is expected to significantly reduce costs and transit time for exporters, ultimately contributing to economic stability.
