Pakistan Expands Exports with New Iran Route Relief

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Pakistan Expands Exports with New Iran Route Relief

The government of Pakistan has announced a temporary policy to support exports through the Iran Route. The move aims to improve trade with regional markets facing access issues.

The decision was shared by the Ministry of Commerce in an official notification. It relaxes certain rules under the Export Policy Order 2022. These rules usually require exporters to follow strict financial procedures.

Under normal conditions, exporters must comply with foreign exchange regulations. These are issued by the State Bank of Pakistan under the Import and Export Control Act, 1950. The new exemption reduces these requirements for a limited time.

The relief will remain active for three months. It started on March 24, 2026, and will continue until June 21, 2026. During this period, exporters can use the Iran Route with fewer financial hurdles.

Earlier, exporters faced serious operational problems. Several banks, including Askari Bank, Soneri Bank, and Habib Bank Limited, had restricted transactions. This created delays and reduced export activity.

With the new policy, Pakistan can export rice to Central Asian Republics and Azerbaijan through the Iran Route. A wide range of goods can also be sent to Iran using this corridor.

These products include seafood, potatoes, meat, onions, and maize. Other items include citrus fruits, bananas, tomatoes, frozen chicken, and pharmaceuticals. Tents are also part of the approved export list.

Exporters must still follow one important condition. They need to submit an undertaking. This confirms that export earnings will return to Pakistan within the required time.

This step comes after disruptions in the Afghanistan trade route. Border closures have affected exports to Afghanistan and nearby regions. As a result, businesses have struggled to maintain trade volumes.

During the first eight months of FY2025-26, exports to Afghanistan dropped sharply. They reached about $219 million between July and December 2025. This shows a decline of over 56 percent compared to last year.

Exports to Central Asia also remained low, around $109 million. Officials say transit challenges are the main reason.

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The government believes the Iran Route will help restore trade flows. It is expected to give exporters better access to regional markets. The temporary relief may also support economic activity in the coming months.

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