The Senate Standing Committee on Finance has referred the issue of more than 600 trucks stranded at the Pakistan-Iran border to the federal cabinet, urging amendments to the Ministry of Commerce’s notification to resolve the trade disruption.
During a special session, the committee invited Iranian Economic Counsellor Zehra, who stated that Iran had not imposed any banking guarantee requirements on its exporters, yet Iranian truck drivers had been unable to cross into Pakistan for weeks. She highlighted that unexpected policy changes, such as new certificate of origin requirements for hydrocarbon imports and iron clearance restrictions, had led to congestion and the return of shipments to Iran.
Senators across party lines expressed dismay over the situation, with Senator Farooq H. Naek, Shibli Faraz, and Faisal Vawda calling for accountability. Naek suggested that the matter be referred directly to the prime minister and cabinet for immediate intervention.
Iranian officials argued that easing trade restrictions could benefit Gwadar Port and boost economic activity. They also cited logistical challenges, including limited entry lanes and clearing terminal congestion, exacerbating delays.
Traders at the session claimed that goods-laden trucks were being moved nightly without paying duties or taxes, raising concerns about irregularities in customs enforcement. Importers stated they could provide guarantees if necessary, but expecting Iranian truck drivers to secure bank guarantees was impractical.
The committee stressed the urgency of resolving the deadlock, noting that each stranded truck carries approximately $11,000 worth of goods, with delays costing traders $100 per truck per day. The number of trucks crossing the border has significantly declined over the past six months, resulting in an estimated economic loss of $2.2 million per day.
Senator Saleem Mandviwalla called the situation “a national embarrassment,” emphasizing that the delays not only cause economic harm but also damage Pakistan’s reputation. The committee directed a letter to the Secretary of Commerce seeking clarification on whether barter trade could include goods not manufactured in the originating country.
Additionally, the committee addressed financial barriers caused by the absence of an official banking channel between Pakistan and Iran. A proposal was made to involve Pakistani importers and clearing agents in the process to facilitate smoother transactions.
In a separate matter, the committee reviewed a case involving M/s MH Traders, which allegedly misdeclared goods under an exemption scheme. Customs authorities found discrepancies in the classification of imported materials, identifying them as synthetic polymer fabrics rather than artificial leather.
The committee recommended that the Federal Board of Revenue (FBR) investigate the matter and verify the trader’s compliance with regulations.
