Pakistan notifies six transit routes to Iran as containers pile up at ports

Pakistan has notified six routes for transit trade to Iran under a new regulatory framework, as thousands of containers destined for the neighbouring country remain held up at ports amid regional disruptions.

The Ministry of Commerce issued a statutory regulatory order (SRO) titled Transit of Goods through Territory of Pakistan Order 2026, bringing the mechanism into force from April 25.

Under the order, goods can be transported to Iran against an encashable bank guarantee, with movement regulated under the Customs Act, 1969 and procedures defined by the Federal Board of Revenue.

The designated routes include Gwadar-Gabd; Karachi or Port Qasim via Lyari, Ormara and Pasni to Gabd; Karachi or Port Qasim via Khuzdar, Dalbandin and Taftan; Gwadar through Turbat, Panjgur and Quetta to Taftan; Gwadar via Lyari and Khuzdar to Taftan; and Karachi or Port Qasim to Gwadar and onward to Gabd.

The move comes as reports indicate over 3,000 containers bound for Iran have been stuck at Karachi ports in recent days, amid continued disruption linked to the Strait of Hormuz and restrictions at Iranian ports.

The order allows “cross-stuffing”, enabling transfer of goods between containers or transport modes under customs regulations, and requires traders to provide financial guarantees equivalent to applicable import duties.

It applies to goods originating from third countries and destined for Iran through Pakistan, forming part of a broader transit framework agreed between the two countries in 2008.

The notification also grants Gwadar Port formal status as a designated transit route for trade with Iran.

Officials from the Gwadar Port Authority said the Gwadar-Gabd corridor offers a shorter route, with an estimated travel time of two to three hours compared to 16 to 18 hours from Karachi.

They added that the route could reduce transit time by up to 87% and lower transport costs by 45% to 55%, supported by Gwadar’s port infrastructure and lower congestion.

Analysts estimate the initiative could generate $24 million to $32 million annually and help Gwadar capture a share of Iran’s transit trade, while supporting development of logistics and storage facilities in the region.