KARACHI: Saquib Fayyaz Magoon, Chairman BMP-Progressive and Senior Vice President Federation Pakistan Chambers of Commerce & Industry (FPCCI), has emphasized the need for expanding bilateral trade ties with Iran to unlock new avenues for industrial growth and regional integration.
Welcoming the federal government’s decision to grant a temporary exemption from bank guarantees and letters of credit (LCs) for exports to Iran and Central Asian states, calling it a timely move to facilitate trade and support exporters, he described the relaxation as a “positive and pragmatic step” that would ease financial constraints and help revive cross-border trade through land routes.
Under the new arrangement, exporters will be allowed to ship goods via Iran to destinations including Azerbaijan and Central Asian countries without the previously mandatory financial documentation, a move expected to streamline export procedures and reduce transaction delays.
Magoon expressed appreciation for Commerce Minister Jam Kamal, noting that the decision would not only simplify export mechanisms but also strengthen regional trade connectivity and generate broader economic benefits. However, he urged the government to go a step further by allowing the import of industrial raw materials—particularly petrochemicals—from Iran. He argued that access to competitively priced Iranian inputs could significantly reduce production costs for Pakistani industries.
“Global and domestic prices of petrochemicals remain elevated, placing immense pressure on manufacturers,” he said, adding that cheaper imports from Iran would provide much-needed relief and improve the price competitiveness of Pakistani goods in international markets.
He maintained that lower input costs would ultimately translate into higher exports, contributing to an increase in foreign exchange earnings and helping stabilize the country’s external account.
Copyright Business Recorder, 2026
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