KARACHI: The Ministry of Commerce has approved a temporary waiver of financial instruments for exports to Iran and Central Asian states, in a bid to ease trade flows and boost regional connectivity.
Pakistan will allow exporters to ship goods to Iran, Azerbaijan and Central Asian countries without bank guarantees or letters of credit for a limited period, according to an official statement on Saturday, marking a rare relaxation of financial safeguards aimed at supporting cross-border trade.
The three-month waiver, effective from March 24 to June 21, permits exports via land routes and is designed to reduce transaction costs and delays for businesses, particularly in the absence of formal banking ties with Iran. The move partially exempts exporters from State Bank of Pakistan (SBP) regulations, while maintaining the requirement to repatriate export proceeds within a prescribed timeframe.
The concession applies to a range of goods including rice, seafood, meat, vegetables and fruits, as well as pharmaceutical products and tents, the Ministry of Commerce said. Officials expect the measure to strengthen trade linkages with neighbouring markets and improve access to Central Asia through Iran.
Commerce Minister Jam Kamal Khan said the government would continue to introduce measures to facilitate exporters and expand regional trade. He added that the initiative would help lower logistics costs and transit times, while enabling Pakistan to tap demand in landlocked Central Asian economies.
