Billboards displaying the flags of the United States, Pakistan and Iran, as Pakistan prepares to host the United States and Iran for the second phase of peace talks in Islamabad, April 18, 2026. Photo: Reuters
ISLAMABAD:
In a significant 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 commerce ministry.
The notification, titled Pakistan to Iran Transit Trade Ordinance, 2026, came into force immediately. It allows goods originating from any third country to be transported through Pakistan and delivered to designated locations in Iran, marking a major step towards improving cross-border trade connectivity.
To implement this decision, the Federal Government introduced amendments to the Import and Export Control Act, 1950, providing the legal framework for the transit agreement. Officials said the order would specifically apply to goods originating outside Pakistan and transported through Pakistani territory en route to Iran.
The government has also specified several corridors and transit routes to operationalize the initiative. The main sea and land entry points include Gwadar, Karachi and Port Qasim. From these centers, the consignments will travel through a network of roads in Balochistan.
Among the designated roads, the Gwadar-Gabd corridor is included, along with roads passing through coastal and inland points such as Lyari, Maira, Pasni and Gabd. Additional routes connect Karachi and Port Qasim to Iran via Khuzdar, Dalbandin and Taftan.
A longer internal corridor was also approved, connecting Gwadar to Turbat, Hoshab, Panjgur, Nag, Besima, Khuzdar, Quetta (via Lak Pass), Dalbandin, Nokundi and Taftan. Another parallel road connects Gwadar via Lyari, Khuzdar, Quetta, Dalbandin, Nokundi and Taftan.
Officials noted that Gwadar and Karachi/Port Qasim routes will serve as major gateways for transit shipments, providing flexibility to traders and logistics operators.
According to the notification, all movement of goods under this arrangement will be governed by the rules laid down under the Customs Act, 1969. Further, the transportation process will be carried out in strict accordance with the procedures prescribed by the Federal Board of Revenue (FBR), thereby ensuring monitoring and compliance with regulations.
The move 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, especially in Balochistan.
On April 13, Pakistan officially launched the Pakistan-Iran Transit Corridor, marking a significant step towards strengthening regional trade connectivity, as the first export batch was shipped from Karachi to Tashkent.
The first shipment, consisting of frozen meat, departed from Karachi under the newly established route, providing exporters with a more efficient and reliable overland alternative to reach Central Asian markets. An opening ceremony was held in Karachi to mark the occasion.
