Pakistan has eased export conditions for trade with Iran and Central Asian countries, offering temporary relief to exporters facing logistical challenges.
The Ministry of Commerce announced a three-month exemption from bank guarantees and letters of credit (LCs) to facilitate smoother trade flows.
According to the Ministry of Commerce, exporters have been granted a temporary exemption from bank guarantees and letters of credit from March 24 to June 21.
Officials said the decision was taken to support exporters dealing with disruptions and to ensure continuity in regional trade.
The exemption will remain in place for three months as a facilitation measure.
New export route via Iran
The ministry confirmed that Pakistan will now be able to export rice to Central Asia and Azerbaijan through Iran. With the closure of the Afghan border, the land route via Iran has become the only viable option for exports to Central Asian markets.
This shift highlights the growing importance of Iran as a transit corridor for Pakistani goods.
In addition to rice, several other products will be exported through Iran under the relaxed conditions. These include seafood, potatoes, meat, onions, corn, fruits, and medicines, according to the ministry’s statement.
The move is expected to benefit multiple sectors, including agriculture, food exports, and pharmaceuticals.
Profit repatriation requirement remains
Despite the relaxation in financial requirements, exporters will still be required to bring back their profits to Pakistan within a specified period.
This condition ensures that foreign exchange earnings are properly routed back into the country’s economy. Officials said the decision to relax conditions was taken specifically to facilitate exporters amid changing regional trade dynamics.
With traditional routes disrupted, particularly due to the Afghan border closure, the government is seeking alternative pathways to sustain export activity.
