Facilitation of transit trade facility for Iran: Ministry adopts cautious stance after withdrawing Jam’s statement

ISLAMABAD: The Ministry of Commerce has reportedly adopted a cautious and low-profile approach regarding the recently announced facilitation of transit trade for Iran through eight designated routes, after withdrawing a previously issued welcoming statement of Commerce Minister Jam Kamal, well-informed sources told Business Recorder on Monday.

The development comes in the backdrop of an SRO issued on April 25, 2026, introducing the “Transit of Goods through Territory of Pakistan Order 2026,” framed under the 2008 bilateral agreement on international road transport of passengers and goods between Pakistan and Iran.

Under the new order, goods originating from third countries and destined for Iran will be allowed transit through Pakistan via officially designated corridors, establishing a structured mechanism for such movements.

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

The government has identified multiple transit routes aimed at improving regional connectivity and logistics efficiency. These include Gwadar–Gabd; Karachi/Port Qasim–Ormara–Pasni–Gabd; Karachi/Port Qasim–Khuzdar–Dalbandin–Taftan; as well as extended corridors linking Gwadar, Turbat, Panjgur, Khuzdar, Quetta, and Taftan. Officials believe these routes could help streamline cargo movement and strengthen Pakistan’s role as a regional transit hub.

However, sources said there is internal ambiguity within the Commerce Ministry over the status and procedural finalisation of the SRO. Some officials maintain that the notification may not have completed all required approvals prior to its publication on the official website. Despite this, an official inquiry into the issuance or publication of the SRO is not currently under consideration, sources added.

According to the order, all transit cargo will remain subject to the Customs Act, 1969, and relevant Federal Board of Revenue (FBR) rules. Traders will also be required to submit customs securities equivalent to applicable import duties to ensure regulatory compliance.

Copyright Business Recorder, 2026