ISLAMABAD:
The Ministry of Commerce approved a temporary exemption on financial instruments, including bank guarantees and letters of credit, for exports to Iran, the Central Asian Republics and Azerbaijan via the Iranian land route, it was learned on Saturday.
The development emerged from a March 24 notification from the commerce ministry received by The Express PAkGazette.
The waiver, issued under the Export and Import Control Act, 1950, waived the requirement of paragraph 3 of the Export Policy Order, 2022, which requires that all exports from Pakistan be made in accordance with the foreign exchange rules, regulations and procedures notified by the State Bank of Pakistan (SBP).
The concession will be valid for three months, from March 24 to June 21. The ministry claimed that the federal government had taken the step to facilitate exporters and improve regional trade.
Under the exemption, rice can be exported to the Central Asian Republics and Azerbaijan via the Iran land route. Exports of the following products to Iran by land were also allowed: rice (blanched), seafood, potatoes, meat, onions, corn, citrus fruits, bananas, tomatoes, frozen chicken, pharmaceuticals and tents.
However, as per the notification, exemption from financial instruments would be subject to submission of an undertaking by the exporter that the export proceeds would be delivered within the stipulated time frame.
Commerce Minister Jam Kamal Khan said Pakistan could now export rice to Central Asia and Azerbaijan through Iran, adding that removing barriers to pharmaceutical exports was the government’s top priority.
He added that trade through Iran would significantly reduce costs and time for exporters, and that increased exports would lead the country towards economic stability.
The Commerce Ministry said it was using all resources to improve regional connectivity and increase trade volume, adding that the move would strengthen trade links in the region.
A week ago, Pakistan’s ambassador to Iran Mudassir Tipu said bilateral and transit trade between the two countries remained operational despite ongoing regional tensions.
The envoy expressed gratitude to the Iranian government for extending “full facilitation” to Pakistan’s trade, including transit trade through Iran during “difficult times”.
He added that land border crossings between Pakistan and Iran were functioning “optimally”, with green channels on multiple routes ensuring quick movement of goods on both sides. Additionally, Tipu said Pakistan was extending maximum cooperation to Tehran to ensure that trade flows are not affected by the evolving situation.
