Issue of stuck 1,200 Iranian trucks: summary to revise barter trade policy with Iran on the cards

ISLAMABAD: To resolve the issue of stuck up 1,200 Iranian trucks at Iranian border, the Ministry of Commerce would move a fresh summary to the federal cabinet for waiver of Import-Form condition for Iran and Afghanistan and revise barter trade policy between Pakistan and Iran.

For the first time, Senate Standing Committee on Commerce and the Senate Standing Committee on Finance and Revenue convened their first-ever joint meeting on Wednesday to address the escalating challenges in Pakistan’s trade sector-particularly focusing on the barter trade mechanism with Iran, a critical neighbouring partner.

“The new summary to the cabinet must give equal treatment to imports from Iran under the barter trade arrangement and Import policy Order,” Chairman of the Finance Committee Saleem Mandviwalla directed Commerce Ministry.

Senate panel takes notice of 600 trucks stuck at Pak-Iran border

The statement of FBR Acting Member Customs shocked the committee that customs are not aware of any 1,200 Iranian trucks as these have not been entered into Pakistani territory. “Nobody has approached Pakistani customs for clearance of any 1,200 Iranian trucks. Therefore, we have no knowledge of the issue,” FBR Member added.

Officials from the Ministry of Commerce informed that the draft summary for the Cabinet has been endorsed by the State Bank of Pakistan (SBP), but the Federal Board of Revenue (FBR) has not submitted its comments, Joint Secretary Commerce Ministry added.

Committee directed the FBR to present its comments at the meeting. Subsequently, FBR Acting Member Customs informed that the FBR has submitted comments that the exemption of I-Form is the domain of Commerce Ministry and SBP and they should mutually decide the matter.

In light of these pressing challenges, the committee unanimously agreed to re-draft the existing barter trade policy. The new framework will aim at ensuring no disadvantage to either party-Pakistan or Iran—whether for imports or exports. The draft policy will first be vetted by the joint committee and subsequently, a formal summary will be presented to the Federal Cabinet for approval. The committee gave 10 days time and sought report.

Chaired jointly by Senator Saleem Mandviwalla and Senator Anusha Rahman Ahmad Khan, the meeting brought together key members of both committees. However, the committees expressed strong displeasure at the absence of the Secretary of Commerce and the Minister for Commerce, terming it a serious disregard for parliamentary oversight on such a pressing national issue.

“The committee will also move a privilege motion against Collector of Customs Quetta, who is not attending the meeting despite directive of the committee,” Mandviwalla warned FBR.

The central agenda revolved around the “complex, irrational, and ineffective policies” governing barter trade, which have led to significant lags in import and export activity.

Both chairs unanimously pointed out the bureaucratic inertia and policy confusion that have not only paralyzed legal trade but have also eroded Pakistan’s economic potential.

“Countries are not run on stay orders,” Senator Saleem Mandviwalla asserted aggressively, pointing that customs authority went into slummer relying on judicial court order for trade in the country.

Echoing this, Senator Anusha Rahman warned that Prime Minister’s vision of accelerating Pakistan’s trade to $60 billion would remain a distant dream if such bureaucratic hurdles continued to dominate decision-making.

The committee specifically highlighted Pakistan Customs as a key obstacle, hindering cross-border trade through “irrational” practices.

Trade movement, they noted, was being stalled over court stay orders, while customs authorities appeared content with policy stagnation, and resistant to any change.

Iranian representatives apprised the committee of the gravity of the situation, revealing that 1,200 trucks-double the previously reported figure of 600—were currently stuck at the Iranian border, causing immense losses to traders on both sides.

The committee pinpointed the root of the crisis to a confusion between two overlapping trade policies: one the Barter Trade Policy, which allows only Iranian-origin goods to enter Pakistan, second the Import Policy Order, which requires the filing of an I-Form for all imports. This policy overlap, they noted, has rendered the barter trade mechanism a non-functional, bureaucratic exercise, further compounded by lack of understanding among traders and absence of an official banking channel between the two countries to support financial transactions.

Under current regulations, Iranian transporters operating between Taftan and the NLC Dry Port must furnish a bank guarantee equivalent to the applicable customs duties and taxes.

However, in the absence of official financial systems, fulfilling this requirement has become practically impossible for Iranian drivers. Officials from the Commerce Ministry acknowledged that the mechanism of border trade is overly complex, making trade operations arduous and discouraging legal trading channels.

Copyright Business Recorder, 2025