Pakistan relaxes export rules for Iran, Central Asia

ISLAMABAD: Pakistan has granted a temporary exemption to exporters from providing bank guarantees and letters of credit (LCs) for exports to Iran and Central Asian countries, according to official notification.

The Ministry of Commerce stated that the exemption will remain effective from March 24 to June 21, 2026, to facilitate trade under evolving regional conditions.

Under this arrangement, Pakistan will be able to export rice to Central Asia and Azerbaijan through Iran. Other export items routed via Iran include seafood, potatoes, meat, onions, corn, fruits, and medicines.

Officials said exporters must ensure that export proceeds are repatriated within the specified timeframe as per the conditions outlined in the notification.

The development comes in the context of existing restrictions on financial instruments under the Export Policy Order, which previously required exporters to furnish bank guarantees and letters of credit.

Sources added that after the closure of the border with Afghanistan, Pakistan’s exports to Central Asia are now being redirected through Iran, making the exemption a key step to sustain trade flows.

Further monitoring mechanisms are expected to ensure compliance with the policy during the exemption period.