Pakistan relaxes banking requirements to facilitate exports to Iran and Central Asia.
ISLAMABAD:
The Ministry of Commerce has granted a temporary exemption from financial instruments, such as bank guarantees and letters of credit, for exports to Iran, the Central Asian Republics, and Azerbaijan via Iran’s land route, officials confirmed on Saturday.
The move follows a March 24 notification issued under the Import and Export Control Act 1950, waiving the requirement under Paragraph 3 of the Export Policy Order 2022, which mandates compliance with State Bank of Pakistan (SBP) foreign exchange rules. The exemption will remain effective for three months, from March 24 to June 21, aimed at facilitating exporters and boosting regional trade.
Under the concession, rice can be exported to Central Asia and Azerbaijan via Iran, while exports to Iran by land now include rice (milled), seafood, potatoes, meat, onions, maize, citrus, banana, tomato, frozen chicken, pharmaceuticals, and tents. The exemption is contingent on exporters submitting an undertaking to remit proceeds within the stipulated period.
Commerce Minister Jam Kamal Khan said the step would enable rice exports to Central Asia and Azerbaijan, reduce costs and transit time, and remove barriers to pharmaceutical exports, emphasizing its role in promoting economic stability.
The Ministry highlighted that the measure strengthens regional connectivity and trade volume. Pakistan’s Ambassador to Iran, Mudassir Tipu, noted that bilateral and transit trade is fully operational despite regional tensions, praising Iran for providing “full facilitation” and maintaining optimal land border operations with green channels for swift cargo movement.
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