In a major development on the trade front, the federal government has granted a temporary exemption to exporters from the requirement of bank guarantees and letters of credit for exports via Iran.
The decision was taken on the instructions of Federal Minister for Commerce Jam Kamal Khan, read an official statement on Saturday.
According to the statement, the Ministry of Commerce has approved a temporary exemption from financial instruments for exports to Iran and Central Asian states, allowing exports to Iran, Azerbaijan, and Central Asian countries via land routes.
The exemption has been granted for three months, effective from March 24 to June 21, 2026, said Jam Kamal.
The minister shared that the government has taken this step to facilitate exporters and boost regional trade.
Export of various items to Iran has been allowed, including rice, seafood, potatoes, meat, onions, sweetcorn, and fruits. Moreover, exports of pharmaceutical products and tents are also included in the concession.
The government has also granted partial exemption from State Bank regulations, while the condition of repatriating export earnings within the stipulated period remains in place, read the statement.
According to the Ministry of Commerce, this move will strengthen trade ties in the region. Kamal said the government will continue to take practical steps to promote exports and facilitate traders.
“Pakistan will now be able to export rice to Central Asia and Azerbaijan via Iran,” said Kamal. He added that removing obstacles to pharmaceutical exports is the government’s top priority.
He shared that the Ministry of Commerce is utilising all resources to enhance regional connectivity and trade volume. “Trade via Iran will significantly reduce exporters’ costs and time,” said Kamal.
“By increasing exports, we will steer the country towards economic stability,” he added.
American Dollar Exchange Rate