In a significant move to boost regional trade, Pakistan has allowed the export of multiple goods to Iran and Central Asian countries through land routes. The government has also introduced a temporary exemption from bank guarantees and letters of credit, making it easier for exporters to send goods without strict financial conditions. This decision aims to support businesses facing challenges due to disrupted trade routes and complex banking requirements.
According to the Ministry of Commerce, the exemption applies to exports going through Iran to countries like Azerbaijan and other Central Asian states. A wide range of products has been approved for export under this policy, including rice, seafood, potatoes, meat, onions, maize, fruits, pharmaceutical products, and tents. This step is expected to open new markets for Pakistani exporters and improve trade connectivity in the region.
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The policy also includes partial relaxation of regulations set by the State Bank, although exporters are still required to bring back their earnings within a specified time. Officials believe that this balance will help maintain financial discipline while encouraging trade growth. By simplifying export procedures, the government hopes to reduce delays and make cross-border trade more efficient.
Federal Minister for Commerce Jam Kamal Khan stated that this special relief has been granted for three months, from March 24 to June 21, 2026. He emphasized that using Iran as a trade route will significantly cut transportation costs and save time for exporters. This, in turn, is expected to increase export volumes and contribute to economic stability.
This initiative highlights Pakistan’s efforts to strengthen economic ties with neighboring regions and explore alternative trade routes. By reducing barriers and encouraging exports, the country aims to improve its economic position and support local businesses during challenging times.
