Billboards displaying flags of the United States, Pakistan and Iran, as Pakistan prepares to host the United States and Iran in the second phase of peace talks in Islamabad, April 18, 2026. Photo: Reuters
ISLAMABAD:
In a major policy change aimed at facilitating regional trade, Pakistan has decided to allow transit of goods to Iran through its territory, according to a notification issued by the Ministry of Commerce.
The notification, titled Pakistan Through Trade in Transit to Iran Order, 2026, came into effect immediately. It allows goods originating from any third country to be transported through Pakistan and delivered to designated locations in Iran, marking an important step towards improving cross-border trade connectivity.
To implement the decision, the federal government introduced amendments to the Import and Export Control Act of 1950, providing the legal framework for the transit agreement. Officials said the order will specifically apply to goods that originate outside Pakistan and are transported through Pakistani territory en route to Iran.
The government has also specified multiple corridors and transit routes to implement the initiative. Major sea and land entry points include Gwadar, Karachi and Port Qasim. From these hubs, shipments will move through a network of Balochistan routes.
The designated routes include the Gwadar-Gabd corridor, along with routes passing through coastal and inland points such as Lyari, Maira, Pasni and Gabd. Additional routes connect Karachi and Port Qasim with Iran via Khuzdar, Dalbandin and Taftan.
A longer inner corridor linking Gwadar with Turbat, Hoshab, Panjgur, Nag, Besima, Khuzdar, Quetta (via Lak Pass), Dalbandin, Nokundi and Taftan has also been approved. Another parallel route connects Gwadar via Lyari, Khuzdar, Quetta, Dalbandin, Nokundi and Taftan.
Officials noted that the Gwadar and Karachi/Port Qasim routes will serve as primary gateways for transit shipments, providing flexibility to traders and logistics operators.
According to the notification, all movement of goods under this agreement will be governed by the norms laid down under the Customs Act, 1969. Further, the transportation process will be carried out strictly in accordance with the procedures prescribed by the Federal Board of Revenue (FBR), ensuring supervision and compliance with regulations.
The decision is seen as a strategic move to position Pakistan as a regional transit hub while strengthening economic ties with neighboring countries and beyond. Officials believe that the new policy will not only streamline trade flows but also generate economic activity along the designated corridors, particularly in Balochistan.
On April 13, Pakistan formally inaugurated the Pakistan-Iran transit corridor, marking a significant step towards improving regional trade connectivity, when the first export consignment was sent from Karachi to Tashkent.
The inaugural shipment, consisting of frozen meat, departed Karachi as part of the newly established route, providing exporters with a more efficient and reliable land alternative to reach Central Asian markets. To mark the occasion, an opening ceremony was held in Karachi.
