New framework: Govt issues new order to facilitate transit trade to Iran

ISLAMABAD: The federal government has issued a new order to facilitate the transit of goods through Pakistan to Iran, aiming to streamline cross-border trade and improve regional connectivity. According to SRO 691(I)/2026 issued on April 25, 2026, the government has introduced the “Transit of Goods through Territory of Pakistan Order 2026, ” under the framework of the bilateral agreement on international road transport of passengers and goods signed between Pakistan and Iran in 2008. The order has come into immediate effect. The new framework outlines key definitions and procedures governing the transit of goods, including provisions for cross-stuffing, customs security, and responsibilities of shippers. It specifies that transit refers to the movement of goods across Pakistan as part of a journey that originates and ends outside the country. READ MORE: Pakistan activates new transit trade corridor through Iran Under the order, the scope applies to goods transported from a third country destined for Iran via Pakistan, providing a formal mechanism for such movements through designated transit corridors. The government has identified multiple routes for the transportation of goods, including Gwadar-Gabd; Karachi /Port Qasim–Ormara–Pasni–Gabd; Karachi/Port Qasim–Khuzdar–Dalbandin–Taftan; and several extended corridors linking Gwadar, Turbat, Panjgur, Khuzdar, Quetta, and Taftan. These routes are expected to enhance logistical efficiency and support trade flows between the region and Iran. The order further states that all transit cargo will be regulated in accordance with the Customs Act, 1969, and relevant rules and procedures prescribed by the Federal Board of Revenue (FBR). Traders will be required to provide customs security equivalent to applicable import levies, ensuring compliance with existing regulations. Officials believe the initiative will facilitate smoother transit trade, reduce bottlenecks, and strengthen economic ties between Pakistan and Iran while positioning Pakistan as a key transit hub in the region. Copyright Business Recorder, 2026

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