Pakistan has allowed Iran to import goods from third countries via new routes through its territory so that it can clear a backlog of thousands of Iran-bound containers that remain stranded at Pakistani ports, officials said this week, as ongoing tensions between the US and Iran disrupt global shipping lines.
Pakistan’s commerce ministry announced on Sunday that it would allow Iran to import goods from other countries through land routes in Pakistan. Under the arrangement, the goods will be transported to Iran through six designated transit routes linking Karachi, Port Qasim and Gwadar ports with Pakistan’s southwestern Balochistan province bordering Iran.
A senior Pakistani official familiar with the development said the commerce ministry’s notification was based on a 2008 agreement between Islamabad and Tehran that allows the transport of goods and passengers by road. He said Iran had not used this facility as it relied on its own ports for trade. However, the ongoing regional tensions meant Iran needed Pakistani ports as vessels dropped Iran-bound containers at ports in Karachi.
“Currently, around 3,000 Iranian containers have been lying at Karachi and Port Qasim since the crisis began,” the official told Arab News on Tuesday. “
“As shipping companies could not wait for the crisis to end to drop the cargo at Iranian ports.”
A commerce ministry spokesperson did not respond to Arab News when asked about the scope of the new initiative.
Pakistan’s Karachi Port and Port Qasim together handle more than 90 percent of Pakistan’s maritime trade. Both have increasingly become temporary holding points for Iran-bound cargo as shipping lines reroute vessels amid regional security concerns.
These ports have seen increased shipping activity as Iran has effectively shut the Strait of Hormuz, a key conduit for oil and gas shipments, since the Iran war began in February. The US has imposed a blockade on Iranian ports, forcing ships to opt for alternative and longer routes.
A port official said authorities were considering using small vessels to move containers to Gwadar port, about 100 kilometers from the Iran border, instead of shifting them by via roads as it would require thousands of trucks along the lengthy route from Karachi.
“This move would help clear the backlog and reduce the cost,” the port official said on condition of anonymity as he was not authorized to speak to the press.
“Using small ships instead of trucks would save about Rs50 million ($180,000) in transport charges,” he said, adding that a decision on the matter will be taken within a few days.
However, he noted that implementation hinges on the Pakistan Customs.
“Customs has to notify policy about handling this cargo and then it will be implemented,” he said.
The port official said the transport activity will generate service revenues for Pakistan as it will handle, transport and provide logistics for the Iran-bound cargo.
“If you are providing a facility and some services, there are charges for those facilities like transport, handling, etcetera,” he said.
He said small vessels were already operating between Gwadar and Oman, carrying limited cargo linked to Iran that has been affected by the blockade.
‘NOTHING TO DO WITH BILATERAL TRADE’
A businessperson, however, cautioned that Pakistan’s decision to open transit routes should not be misconstrued as enhancing bilateral trade, which remains constrained by international sanctions against Iran.
“This has nothing to do with bilateral trade between the two countries,” Tariq M. Rangoonwala, chair of the Pakistan National Committee of the International Chamber of Commerce, told Arab News.
He explained that sanctions on Iran continue to restrict financial transactions and formal trade channels, adding that essential goods could still be routed under humanitarian allowances but currency exchange remains constrained.
