Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (), has acknowledged the Ministry of Commerce for its timely decision to temporarily exempt exports to Iran, Central Asian Republics and Azerbaijan from mandatory financial instruments. This waiver, effective from March 24 to June 21, 2026, is a vital lifeline for Pakistani exporters navigating current regional maritime disruptions due to ongoing military conflict.
The Chief emphasized that this relaxation will serve as a necessary catalyst for realizing the ambitious $10 billion bilateral trade target previously set between Pakistan and Iran. Recent customs data also highlights the immense potential of this trade corridor.
By temporarily removing the immediate bottlenecks of formal banking channels, which have historically constrained commercial activity due to strict State Bank of Pakistan (SBP) regulations and international sanctions, the government has unlocked a highly-lucrative, land-based trade route.
With global shipping traffic through the Strait of Hormuz currently experiencing a severe 90% drop amid escalating geopolitical tensions in the Gulf, shifting commercial focus to secure land routes is an absolute economic necessity. This exemption ensures that Pakistan’s supply chains remain uninterrupted, resilient and globally competitive.
The Ministry of Commerce’s recent notification permits the export of several high-demand commodities via the Iranian land route without the usual financial safeguards, provided exporters submit an undertaking to repatriate proceeds within a stipulated time-frame.
SVP anticipates a significant volume boost in the following approved sectors: agricultural products; including milled rice, maize, potatoes, onions, tomatoes, bananas and citrus fruits; protein & seafood; including meat, frozen chicken and various seafood products; value-added & essential goods such as pharmaceuticals and disaster-relief tents.
Easing the stringent requirements of the Export Policy Order 2022 has significantly reduced transaction costs and transit times for the business community. This allows Pakistan not only to export to Iran but also tap into the lucrative land-locked Central Asian economies.
While welcomes this 3-month relief, it urges the federal government to utilize this window to formalize permanent, sustainable solutions, including expanding current limited barter mechanisms into a comprehensive framework that mitigates banking hurdles entirely. Infrastructure development in border logistics and customs stations is also needed to efficiently handle increased cargo volumes and expand transit trade.
stands ready to collaborate with the Ministry of Commerce to ensure the seamless execution of this exemption and advocate for trade and economic policies that secure Pakistan’s macroeconomic stability through export-led, sustainable growth.