KARACHI – The federal government granted exporters temporary exemption from bank guarantees and letters of credit (LCs) for shipments to Iran and Central Asian nations, and the decision has been warmly welcomed by Saquib Fayyaz Magoon, Chairman of BMP-Progressive and Senior Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), who called it a game-changer for cross-border commerce.
Under new arrangement, Pakistani exporters can now send goods via Iran to destinations including Azerbaijan and other Central Asian markets without the cumbersome financial documentation that previously slowed trade. The change promises faster transactions, reduced costs, and smoother export operations.
Magoon praised Commerce Minister Jam Kamal for this bold step, emphasizing that it not only simplifies trade but also strengthens Pakistan’s regional connectivity, potentially unlocking significant economic benefits.
However, he stressed that the move should go further. Pakistan urgently needs access to affordable industrial raw materials, particularly petrochemicals, from Iran. “High global and domestic prices are straining manufacturers. Access to competitively priced Iranian inputs could drastically cut production costs and boost the international competitiveness of Pakistani products,” Magoon said.
He highlighted that lower input costs would fuel exports, increase foreign exchange earnings, and help stabilize the country’s external account. Magoon concluded by urging the government to expand bilateral trade with Iran, calling it a strategic opportunity to drive industrial growth, regional integration, and long-term economic prosperity.
