Pakistan Eases Export Banking Rules for Regional Trade

Pakistan grants temporary banking exemption for exports to Iran, Central Asia and Azerbaijan to boost regional trade.

The Ministry of Commerce has approved a temporary exemption from key financial requirements for exports to Iran, Central Asian Republics and Azerbaijan via Iran’s land route.

Issued under the Import and Export Control Act 1950, the measure waives the requirement for financial instruments such as bank guarantees and letters of credit. It also relaxes compliance with foreign exchange rules governed by the State Bank of Pakistan.

The exemption will remain in effect for three months, from March 24 to June 21, and is aimed at facilitating exporters and strengthening regional trade links.

Under the policy, Pakistan can export a range of goods including rice, seafood, meat, fruits, vegetables, pharmaceuticals and other commodities through Iran’s land route. Exporters must, however, provide an undertaking to ensure that export proceeds are repatriated within the required timeframe.

Jam Kamal Khan stated that the move would reduce costs and transit time for exporters while supporting economic stability through increased trade volumes.

Officials added that the initiative is part of broader efforts to enhance regional connectivity and maintain trade flows despite ongoing geopolitical challenges.