Commerce ministry adopts cautious stance on Iran transit trade framework

The Ministry of Commerce has taken a cautious approach to the newly announced transit trade framework for Iran, with officials indicating internal uncertainty following the withdrawal of an earlier statement by Commerce Minister Jam Kamal, Business Recorder reported. 

The development follows the issuance of a statutory regulatory order on April 25, 2026, introducing the “Transit of Goods through Territory of Pakistan Order 2026,” framed under the 2008 bilateral agreement on international road transport between Pakistan and Iran.

Under the new framework, goods originating from third countries and destined for Iran will be allowed to transit through Pakistan using designated corridors, establishing a formal mechanism for such movements.

The identified routes include Gwadar–Gabd; Karachi/Port Qasim–Ormara–Pasni–Gabd; Karachi/Port Qasim–Khuzdar–Dalbandin–Taftan; and extended corridors connecting Gwadar, Turbat, Panjgur, Khuzdar, Quetta and Taftan.

Officials said the routes are aimed at improving logistics efficiency and strengthening Pakistan’s role in regional transit trade.

However, BR reported, citing sources, that there is ambiguity within the ministry regarding whether all procedural approvals were completed before the SRO was issued and published. Despite these concerns, no formal inquiry into the notification process is currently under consideration.

According to the order, transit cargo will remain subject to the Customs Act, 1969, and applicable rules of the Federal Board of Revenue. Traders will be required to provide customs securities equivalent to import duties to ensure compliance with regulatory requirements.