KARACHI: Pakistan has granted a temporary exemption for exporters from the requirement of bank guarantees and letters of credit (LCs) for shipments to Iran and Central Asian countries, according to an official notification from the Ministry of Commerce.
The exemption will be effective from March 24 to June 21, 2026.
The move is aimed at facilitating exports, easing trade procedures, and boosting Pakistan’s access to regional markets.
Under the new rules, Pakistani companies can export a range of products via Iran to Central Asia and Azerbaijan, including rice, seafood, potatoes, meat, onions, maize, fruits, and medicines.
Exporters must ensure that the profits from these shipments are repatriated within the specified period.
The Ministry of Commerce noted that financial instrument requirements had previously been imposed under the Export Policy Order. Following the closure of Pakistan’s border with Afghanistan, trade to Central Asia is now primarily routed through Iran.
Earlier, the United Nations engaged Pakistan in efforts to operationalize a special task force on the Strait of Hormuz amid escalating regional tensions.
UN Secretary-General Antonio Guterres announced the launch of a dedicated task force to develop mechanisms ensuring the safe passage of humanitarian supplies and essential agricultural goods through the Strait of Hormuz.
The move comes amid a near-total halt in traffic through the key waterway due to the ongoing U.S.-Israel conflict with Iran, raising concerns over global food security and humanitarian operations.
“As the conflict in the Middle East unfolds and threatens to intensify, disruptions in maritime trade through the Strait risk creating ripple effects, impacting humanitarian needs and agricultural production in the coming months,” UN spokesperson Stéphane Dujarric told reporters at UN Headquarters in New York.
