ISLAMABAD:
The Ministry of Commerce has approved a temporary exemption of financial instruments, including bank guarantees and letters of credit, for exports to Iran, Central Asian republics and Azerbaijan via the Iranian land route, it was learned on Saturday.
The development follows a March 24 notification from the Commerce Ministry received by The Express PK Press Club.
The exemption, issued under the Import and Export Control Act, 1950, waived the requirement of paragraph 3 of the Export Policy Ordinance, 2022, which requires all exports from Pakistan to be carried out in accordance with the foreign exchange rules, regulations and procedures notified by the State Bank of Pakistan (SBP).
The concession will remain in effect for three months, from March 24 to June 21. The ministry said the federal government had taken steps to facilitate exporters and strengthen regional trade.
Under this exemption, rice can be exported to the Central Asian republics and Azerbaijan via Iranian land route. Exports of the following products to Iran by land were also permitted: rice (milled), seafood, potatoes, meat, onions, corn, citrus fruits, bananas, tomatoes, frozen chicken, pharmaceuticals and tents.
However, according to the notification, the exemption of financial instruments would be subject to the presentation of an undertaking from the exporter that the export proceeds would be presented within the stipulated period.
Commerce Minister Jam Kamal Khan said Pakistan would now be able to export rice to Central Asia and Azerbaijan via 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 lead times for exporters, and increased exports would lead the country towards economic stability.
The Ministry of Commerce said it was using all resources to improve regional connectivity and increase trade volume, adding that the move would strengthen trade ties 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 providing “full facilitation” to Pakistan’s trade, including transit trade through Iran during “a difficult period”.
He added that the land border crossings between Pakistan and Iran were functioning “optimally”, with green channels on several routes ensuring rapid movement of goods on both sides. Furthermore, Tipu said Pakistan was extending maximum cooperation to Tehran to ensure that trade flows were not affected by the developing situation.
