By S.M. Inam/Asghar Ali Mubarak
ISLAMABAD: The Ministry of Commerce has approved a temporary exemption from financial instruments, including bank guarantees and letters of credit, for exports to Iran, the Central Asian Republics, and Azerbaijan via Iran’s land route, officials said on Saturday.
The decision follows a March 24 notification by the Ministry of Commerce received by The Express Tribune. The exemption, issued under the Import and Export Control Act 1950, waives the requirement under Paragraph 3 of the Export Policy Order 2022, which mandates compliance with Foreign Exchange Rules set by the State Bank of Pakistan (SBP).
The concession will remain in effect for three months, from March 24 to June 21. The ministry stated that the federal government had taken the step to facilitate exporters and boost regional trade.
Under the exemption, rice may be exported to the Central Asian Republics and Azerbaijan through Iran’s land route. Exports of rice (milled), seafood, potatoes, meat, onions, maize, citrus, bananas, tomatoes, frozen chicken, pharmaceuticals, and tents to Iran via land were also permitted.
However, the exemption from financial instruments requires exporters to submit an undertaking confirming that the export proceeds will be submitted within the stipulated period.
Commerce Minister Jam Kamal Khan said Pakistan would now be able to export rice to Central Asia and Azerbaijan via Iran. He added that removing barriers to pharmaceutical exports remained a government priority.
He noted that trade through Iran would significantly reduce costs and time for exporters, while increasing exports would contribute to economic stability.
The Ministry of Commerce said it was using all available resources to enhance regional connectivity and trade volume, stressing that the measure would strengthen trade links across the region.
Last week, Pakistan’s Ambassador to Iran, Mudassir Tipu, said bilateral and transit trade between the two countries remained operational despite regional tensions. He thanked the Iranian government for providing “full facilitation” to Pakistan’s trade, including transit trade, during challenging times.
He added that land border crossings between Pakistan and Iran were functioning “optimally,” with green channels at multiple routes ensuring swift movement of goods, and noted Pakistan was cooperating fully with Tehran to ensure trade flows remain uninterrupted.
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