ISLAMABAD:
The Ministry of Commerce has approved a temporary exemption from financial instruments, including bank guarantees and letters of credit, for exports to Iran, the Central Asian Republics and Azerbaijan via Iran’s land route, it appeared on Saturday.
The development arose from a March 24 notification from the commerce ministry received by The Express Pakinomist.
The exemption, issued under the Import and Export Control Act 1950, waived the requirement in Clause 3 of the Export Policy Order 2022, which mandates that all exports from Pakistan must be made in accordance with foreign exchange rules, regulations and procedures notified by the State Bank of Pakistan (SBP).
The concession will remain effective for three months, from March 24 to June 21. The ministry stated that the federal government had taken the step to facilitate the exporters and improve regional trade.
Under the exemption, rice can be exported to the Central Asian Republics and Azerbaijan through Iran’s land route. Export of the following goods to Iran by land was also allowed: rice (milled), seafood, potatoes, meat, onion, corn, citrus, banana, tomato, frozen chicken, pharmaceuticals and tents.
However, according to the notification, the exemption for financial instruments will be conditional on the exporter giving an undertaking that the export proceeds will be presented within the set deadline.
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 exporters’ costs and time, and that increasing exports would steer the country towards economic stability.
The Commerce Ministry said it was using all resources to improve regional connectivity and increase trade volume, adding that the measure 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 extending “full facilitation” to Pakistan’s trade, including transit trade through Iran in “challenging times”.
He added that land border crossings between Pakistan and Iran were functioning “optimally”, with green channels on several routes ensuring rapid movement of goods on both sides. Further, Tipu said that Pakistan extended maximum cooperation to Tehran to ensure that trade flows remain unaffected by the evolving situation.
