Pakistan is encountering a daily loss of $2.2 million due to upsetting trade relations with Iran, as 600 Iranian trucks remain stranded at the Pakistan-Iran border. The Senate Standing Committee on Finance has referred the matter to Prime Minister Shehbaz Sharif, urging the federal cabinet to review and resolve the issue.
Senator Saleem Mandviwalla chaired a meeting, and in that meeting Iranian diplomats flagged issues over Pakistan’s bank guarantee requirement for Iranian trucks, which has severely impacted trade. They pointed out that this condition had been removed in a 2008 agreement but was recently reinstated, restricting the movement of Iranian trucks into Pakistan.
The representatives of Iran emphasized that while Pakistan has imposed this restriction, Iran has not placed any such conditions on Pakistani trucks. As a result, the number of Iranian trucks entering Pakistan has declined from 600 to 400 in six months, with some drivers waiting over a month at the border.
Senator Saleem Mandviwalla focused that Pakistan and Iran trade primarily through a barter system, but unnecessary customs regulations have brought transactions to a standstill. Senator Farooq Naek strongly convicted the whole scenario, and he called it an embarrassment for Pakistan, questioning why foreign diplomats had to give reminder to the country about its own trade policies.
Senator Shibli Faraz accused bureaucracy of creating hurdles instead of facilitating trade, while Senator Anusha Rahman slammed customs officials for making border trade unnecessarily complicated. She argued that they had turned customs clearance into a personal business, demanding excessive documentation beyond their jurisdiction.
However, customs officials denied that the bank guarantee was disrupting trade, claiming that Iranian trucks were granted clearance without such conditions. They argued that goods cleared at Taftan did not require a guarantee and accused Iranian traders of attempting to transport duty-free goods from Taftan to Quetta, which was against regulations.
Officials further clarified that the bank guarantee only applied to bilateral trade, not barter trade, and those third-party goods could not enter Pakistan under the barter system.
Given the rising tensions and financial losses, the Senate committee has escalated the issue to Prime Minister Shehbaz Sharif, recommending urgent intervention by the federal cabinet to resolve the crisis and restore smooth trade between Pakistan and Iran.