Iran urges Pakistan to ease trade barriers amid nearly $2mn in daily loss

February 26, 2025 (MLN): Iranian officials urged the Pakistani government to take steps to facilitate trade, as trade barriers at the Pakistan-Iran border are causing a daily loss of $2.2 million.

This discussion took place during a meeting of the Senate Standing Committee on Finance, chaired by Saleem Mandviwalla, which was held to review the issue of 600 cargo trucks stranded at the Iranian border for the past six months.

Iranian officials stated that Pakistani authorities demand a bank guarantee from Iranian truck drivers, creating further hurdles, according to the press release issued today.

They further emphasized that trade with Pakistan could be easily conducted through the Ramdan border in Gwadar.

The Iranian side imposes no tax on Pakistani trucks and provides them with fuel at a rate of Rs6 per liter.

They highlighted that there are six lanes on the Iranian side, while only two exist on the Pakistani side, leading to long queues of trucks due to limited capacity.

Committee members expressed surprise at the Iranian officials’ briefing.

Senator Farooq Naek described the situation as "shameful and an embarrassment."

He stressed that the issue should be a top priority on the federal cabinet’s agenda and called for the Prime Minister to take immediate notice of the matter.

Senator Farooq H. Naek expressed his deep concern over the revelations made by the Iranian Embassy representative, stating, "The representative of the Iranian Embassy has opened our eyes today."

Committee member Anusha Rahman appreciated the decision to invite the Iranian representative, remarking, "By inviting the Iranian representative, you have done a great job."

She also raised concerns over the role of Customs, questioning, "What right does Customs have to ask for a bank guarantee?"

Senator Farooq H. Naek urged immediate action, stating, "This matter should be sent to the Prime Minister for the next cabinet meeting," and emphasized its importance, saying, "This is a matter of national interest and should be prioritized."

During the session, the Chief of Customs Operations acknowledged the leniency in trade regulations, stating, "We allow every Iranian truck to pass without taking any guarantee."

He further clarified, "No guarantee is taken for goods that are cleared at Taftan," and highlighted concerns over tax evasion, saying, "They want to transport these goods from Taftan to Quetta without paying taxes and duties."

The Chief of Customs Operations also addressed the broader smuggling issue, stating, "Our major smuggling issue is at the Balochistan border."

He refuted claims that all Iranian imports are directed solely to Quetta, remarking, "Not all imported goods from Iran go only to Quetta."

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