Pakistan Lacks Plan as US Sanctions on Iran Threaten $800 Million Informal Trade
Pakistan’s Ministry of Commerce has reportedly not prepared a concrete plan to deal with the expected impact of new US restrictions on Iran, despite the potential risks to Pakistan’s informal trade and exports with its neighboring country.
Pakistan is closely monitoring the situation, officials said, although the implementation of the US Treasury’s operation Economic D Day, announced on August 24, has not yet started. The measures are expected to include prohibitive secondary sanctions on countries that continue trading with Iran, reported Business Recorder.
Pakistan’s formal exports to Iran remain negligible, while informal trade between the two countries is estimated at around $800 million annually, including trade through informal channels and barter arrangements. Rice exports are mainly transported through the Gabd Border Crossing Point, while mango consignments generally move through Taftan.
Official data showed that 1,209 trucks carrying rice crossed through Gabd during June and July 2026, while around 1,121 trucks carrying mangoes passed through Taftan during the same period.
Security concerns in Balochistan are another challenge for bilateral trade, particularly along the Quetta to Taftan route. Cargo vehicles travel in Frontier Corps convoys, but attacks on trucks continue to disrupt trade.
Pakistan has provided exemptions for certain formal trade transactions, including waivers from financial instrument requirements for imports from Iran and cargo under the Central Asia Regional Economic Cooperation corridor through Iran. Exports of essential goods such as food, medicines and tents to Iran, as well as rice shipments to Azerbaijan through the Iran land route, have also received temporary exemptions.
The issue comes shortly after the 10th meeting of the Pakistan Iran Joint Trade Committee, held in Islamabad from August 3 to 5. The two sides agreed on measures to improve customs operations, road and rail connectivity, border crossings and air cargo operations, including 24 hour customs services at border crossing points.
Officials said these measures could support formal bilateral trade, but tighter US restrictions on Iran could complicate trade through the Iran corridor. With formal exports already limited and a significant volume of trade conducted informally, Islamabad faces pressure to assess the potential impact of the new measures and prepare a contingency strategy.
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