Pakistan easing regulation to boost food exports to Iran Submitted by MEE staff on Fri, 03/27/2026 - 16:12 Pakistan will allow food items to be exported through Iran without letters of credit or bank guarantees Workers prepare to pack whole squids for export at a factory at a fishery port in Karachi, Pakistan, on 22 November 2019 (Asif Hassan/AFP) Off Pakistan has eased a key financial regulation to make it easier for exporters to send goods to and through Iran, according to a report on Friday by Pakistan's Profit magazine. Pakistani exporters looking to send goods to Iran have traditionally needed to use specific payment channels so export proceeds are repatriated quickly. This process required exporters to use letters of credit or advance payments. Because Iran is under crippling US and some United Nations sanctions, few financial institutions were willing to work with Pakistani exporters to provide the necessary paperwork. Pakistan’s Ministry of Commerce is now easing this restriction for certain goods. Pakistan will now allow exports of food and agro-based items as well as selected manufactured goods, including seafood; potatoes; meat; onions; maize; citrus fruit; bananas; tomatoes; frozen chicken; pharmaceuticals; and tents. The exemption to use the previous financial pipeline will last three months. In addition, Pakistan will now allow rice exports to the Central Asian Republics and Azerbaijan to transit Iran. Iran has grown in importance as a transit country for Pakistan, with tensions high between Islamabad and Afghanistan, where brutal fighting has occurred between the Pakistani military and the Taliban. Walking a tightrope The decision also comes as Pakistan seeks to position itself as a regional player amid the US-Israeli war on Iran. Saudi Arabia diverged with Turkey and Pakistan on condemning Iran Read More » Earlier this week, Pakistani Prime Minister Shehbaz Sharif directed authorities to accelerate the export of surplus food items to Gulf countries amid the closure of the Strait of Hormuz. Islamabad is also looking to expand flight operations and enhance port efficiency as a result of the US-Israeli war on Iran. Pakistan has been walking a tightrope as it tries to manage its ties to its neighbour Iran and important Gulf partners that have long served as its financial lifeline. Islamabad has been eyed as a potential mediator, given its cordial ties to the US and Iran. Pakistan has been one of the few countries to safely navigate the Strait of Hormuz. Earlier this month, the Lorax, a Pakistan-flagged ship also known as the Karachi, became the first vessel carrying non-Iranian crude to transit through Hormuz, with its ship-tracking data, called the Automatic Identification System, on. The Financial Times reported on Friday that some vessels looking to transit the waterway were reflagging as Pakistani. Pakistan may have opportunities in shipping and food exports from the war, but it is also among the most impacted by the plunge in Gulf energy exports. Fuel rationing has already begun, including a four-day working week for government employees and a two-week school closure. War on Iran News Post Date Override 0 Update Date Mon, 05/04/2020 - 21:19 Update Date Override 0
March 27, 2026