Pakistan has eased export regulations to permit shipments of food, pharmaceuticals, and tents to Iran, as well as onward transit to Central Asia via Iranian territory, the commerce ministry declared on Saturday. The move is aimed at strengthening declining exports and redirecting trade affected by regional tensions.
The temporary measure, in effect from March 24 to June 21, removes the requirement for bank guarantees and letters of credit (LCs) for certain overland exports to Iran. It also facilitates the transit of Pakistani goods—particularly rice—to Central Asian Republics (CARs) and Azerbaijan through Iranian routes.
As reported by Arab News, “The Federal Minister for Commerce has been pleased to provide exemption from Para 3 of Export Policy Order 2022, which requires all exports from Pakistan to be made in compliance of foreign exchange rules, regulations and procedures,” the ministry stated.
The exemption applies to exports of milled rice, seafood, potatoes, meat, onions, maize, citrus fruits, bananas, tomatoes, frozen chicken, pharmaceutical products, and tents.
Under the revised framework, exporters are granted relief from certain financial obligations, including bank guarantees and letters of credit, for land‑based trade. However, the requirement to repatriate export proceeds within the stipulated timeframe remains in force under State Bank regulations. Officials noted that the initiative is designed to lower transportation costs and reduce transit time for exporters, while also strengthening regional trade connectivity by utilizing Iran as a transit hub.
Commerce Minister Jam Kamal said the government is taking proactive steps to boost exports and assist the business community. He noted that Pakistan can now export rice to Central Asia and Azerbaijan via Iran, adding that efforts are underway to address challenges in pharmaceutical exports.
Earlier, Iranian authorities permitted two Pakistani cargo vessels to transit through the Strait of Hormuz.
Pakistan’s exports fell by 7% to $20.5 billion in July–February FY26, down from $22.1 billion during the same period last year, according to data from the Pakistan Bureau of Statistics.
In the previous fiscal year, the country recorded a trade deficit exceeding $26 billion, with exports increasing 5% to $32.1 billion against imports of $58.4 billion.
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