Border trade with Iran suspended, 2,000 trucks stranded at Taftan and Gabd-Rimdan: Mian Zahid Hussain

KARACHI: Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, has said that national security, the country’s sovereignty and the protection of people’s lives and property take precedence over every trade interest. However, he said the sudden suspension of border trade with Iran has caused serious difficulties for the business community.

He said the government should give traders at least a month’s grace period along with its security measures so that they can avoid financial losses.

Suspension of trade and the official position

According to Mian Zahid Hussain, border trade with Iran through Balochistan’s land routes of Taftan and Gabd-Rimdan has been suspended after the relevant directive of the Ministry of Commerce was withdrawn.

Representatives of the Balochistan government have described the closure as temporary and related to improving security and border arrangements. According to them, Iranian Foreign Ministry spokesman Esmaeil Baghaei has also attributed the suspension of trade to technical issues and precautionary measures, and said contacts between the two countries are continuing.

Trade volume and losses

Mian Zahid Hussain said Pakistan exports goods worth about $700 million to Iran, while imports from Iran stand at about $2 billion. Annual trade between the two countries thus comes to about $3 billion.

According to him, the halt in trade is feared to hurt the timely completion of export orders, payments, and the livelihoods of traders, transporters and labourers in the border areas. If imports from Iran remain suspended, Pakistan may also face a shortage of liquefied petroleum gas (LPG).

He said that, according to the Quetta Chamber of Commerce, about 2,000 freight trucks are stranded on both sides of the border. Pakistani traders have already made advance payments to Iranian suppliers, while extra vehicle rents, drivers’ accommodation and the cost of guarding the goods are rising.

There is also a risk of perishable items, including fruit and vegetables, being wasted, so urgent arrangements are needed to protect and clear the stranded goods.

According to Mian Zahid Hussain, the Rice Exporters Association of Pakistan has backed giving priority to national security. However, it is difficult to send all agricultural products by sea through Bandar Abbas. Shipping and insurance costs have already risen because of the war, while alternative routes could raise exporters’ costs further.

Demands

He demanded that the Ministry of Interior, the Ministry of Commerce, the FBR and the Balochistan government set up a joint coordination system. He also called for clearance of eligible trade goods after inspection with the permission of security agencies, safe waiting areas, and priority movement of perishable items.

He also asked that alternative legal routes for exporters, port facilities and a temporary relaxation in additional administrative costs be considered.

Mian Zahid Hussain said the business community supports the government measures necessary for national security. However, he said an early resumption of legal trade, once security arrangements are satisfactory, is in the national interest. He said effective border monitoring and timely facilities for traders can strengthen peace, economic stability and the country’s exports.