Business Community Applauds Government’s Trade Relaxation with Iran, Central Asia

Karachi, March 31, 2026: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has welcomed the Ministry of Commerce’s decision to temporarily exempt exports to Iran, the Central Asian Republics, and Azerbaijan from mandatory financial instruments.

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Atif Ikram Sheikh, FPCCI President, praised Federal Commerce Minister Jam Kamal Khan for approving the nearly three-month waiver on Letters of Credit (LCs) and bank guarantees, effective from March 24 to June 21, 2026. The exemption is expected to ease export bottlenecks amid ongoing regional maritime disruptions caused by military tensions in the Gulf.

Sheikh highlighted that the relaxation will boost trade towards the $10 billion bilateral target with Iran, while unlocking land-based trade routes to Central Asia that remain resilient despite a 90% drop in shipping traffic through the Strait of Hormuz.

Saquib Fayyaz Magoon, SVP FPCCI, noted that the waiver allows exporters to move agricultural products, seafood, pharmaceuticals, and disaster-relief goods via Iran without traditional financial safeguards, provided proceeds are repatriated within a stipulated timeframe. He added that easing Export Policy Order 2022 requirements will reduce transaction costs and transit times, opening lucrative markets for Pakistani businesses.

FPCCI urged the government to use this period to formalize permanent barter trade mechanisms and invest in border logistics infrastructure, such as the newly established Jeerak customs facility in Panjgur, to handle higher cargo volumes efficiently. The chamber also reaffirmed its commitment to collaborate with the Ministry of Commerce to secure long-term, sustainable trade policies supporting Pakistan’s macroeconomic stability.