The Ministry of Commerce has launched a new legal framework to regulate transit trade through Pakistan. This initiative aims to improve cross-border logistics and strengthen regional connectivity, especially with Iran.
Officials issued the Transit of Goods through Territory of Pakistan Order 2026 on April 25. The order came into effect immediately after notification.
Legal Structure for Transit Trade
The new order operates under a 2008 bilateral agreement between Pakistan and Iran. This agreement governs the international transport of goods and passengers.
It defines key terms such as transit operations, customs security, cross-stuffing, and shipper responsibilities. In addition, it sets a clear regulatory structure for trade movement across Pakistan.
Transit refers to goods moving through Pakistan as part of a journey that begins and ends outside the country. Authorities clarified this definition in the official notification.
Customs Regulation and Compliance System
All transit cargo will now fall under the Customs Act, 1969. Moreover, the Federal Board of Revenue (FBR) will enforce standard procedures for compliance.
This system ensures uniform rules for traders and transport operators. As a result, authorities expect smoother and more transparent trade operations.
Designated Transit Corridors
The government has identified key transit corridors across the country. These routes link major ports with inland and border areas.
Important corridors include Gwadar–Gabd and Karachi/Port Qasim–Gabd. Other routes pass through Turbat, Panjgur, Khuzdar, Quetta, and Taftan.
These routes aim to improve trade flow toward Iran and other regional markets.
Strategic Role of Gwadar Port
The policy highlights the growing importance of Gwadar Port in Pakistan’s trade system.
Due to its location near the Iranian border, Gwadar offers a shorter trade route. It also provides a cost-efficient alternative to traditional Karachi-based shipping routes.
As a result, the port is expected to become a key regional transit hub.
Trade Incentives and Port Competitiveness
The Gwadar Port Authority has introduced commercial incentives to attract cargo traffic.
These incentives include extended free storage periods and lower handling charges. Additionally, they aim to improve Gwadar’s competitiveness as a transshipment hub.
Economic Impact and Regional Growth
Experts believe the new framework will reduce delays in trade processing. It will also improve clarity for international transport companies.
Consequently, transit volumes through Pakistan may increase in the coming years. This shift aligns with evolving regional supply chain dynamics.
Furthermore, the policy is expected to boost economic activity in Balochistan. It may create new jobs and expand logistics infrastructure around Gwadar.
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