$2.2 million lost daily as 600 Iranian trucks stuck at Pakistan border, senate body told

Commuters ride along a street at Panjgur district in Balochistan province on January 17, 2024. (AFP/File)
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Updated 27 February 2025
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$2.2 million lost daily as 600 Iranian trucks stuck at Pakistan border, senate body told

  • Pakistan has mandated Iranian transporters to provide bank guarantee equivalent to value of duties, taxes on goods
  • Due to new rules, around 600 Iranian trucks stuck at Pakistan border, costing traders about $100 per day per truck

ISLAMABAD: A representative from Tehran told a Pakistani parliamentary panel this week an estimated daily economic loss of $2.2 million was being caused by Iranian trucks stuck on the border with Pakistan over the past six months due to new customs rules, a press release said. 
Pakistan last year made it compulsory for Iranian transporters to provide a bank guarantee equivalent to the customs duties and taxes imposed on goods being delivered to the National Logistics Corporation (NLC) Dry Port Quetta via Taftan, a border crossing with Iran. Tehran does not demand similar guarantees from Islamabad.
“One of the most pressing issues discussed was the ongoing crisis at the Pakistan-Iran border, where over 600 trucks carrying trade goods have been stuck due to customs officials demanding court orders,” the Senate Standing Committee on Finance said in a press release after its meeting. 
The Iranian representative at the meeting said each truck carried goods worth approximately $11,000 and the delay was costing traders about $100 per day per truck, which ultimately raised the price of goods for consumers. 
“The drop in the number of trucks crossing the border in the past six months has led to an estimated daily economic loss of $2.2 million,” the statement quoted the Iranian official as saying. 
The senate committee would now write a letter to Prime Minister Shehbaz Sharif urging him to take up the matter at the next cabinet meeting.
“This issue has reached a critical point. It is not only a matter of economic losses but also a matter of national pride. The situation is deeply concerning for the country as a whole,”  said Saleem Mandiwalla, the chairman of the committee. 
Pakistan imports from Iran stood at $943.29 million during 2023, according to the United Nations COMTRADE database on international trade. Official figures for current annual trade were not available but local media outlet Business Recorder, citing Iran’s ambassador to Pakistan, last year reported bilateral trade worth over $2 billion.
Earlier this month, Pakistan and Iran signed a memorandum of understanding aimed at increasing bilateral trade volume to $10 billion.
Pakistan and Iran have had a history of rocky relations despite a number of commercial pacts, with Islamabad being historically closer to Saudi Arabia and the United States.
Their highest-profile agreement is a stalled gas supply deal signed in 2010 to build a pipeline from Iran’s South Fars gas field to Pakistan’s southern provinces of Balochistan and Sindh.
Despite Pakistan’s dire need of gas, Islamabad has yet to begin construction of its part of the pipeline, citing fears over US sanctions — a concern Tehran has rejected.
Pakistan said it would seek waivers from the US, but Washington has said it does not support the project and warned of the risk of sanctions in doing business with Tehran.
Despite facing possible contract breach penalties running into the billions of dollars, Islamabad last year gave the go-ahead for construction of an 80-km (50-mile) stretch of the pipeline.


Trump says can broker Iran‑Israel peace using trade as he did with India‑Pakistan

Updated 44 min 17 sec ago
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Trump says can broker Iran‑Israel peace using trade as he did with India‑Pakistan

  • Trump’s reference to India and Pakistan pertains to military confrontation which ended with US-facilitated ceasefire on May 10
  • Iranian officials report at least 138 people have been killed in Israel’s military onslaught since Friday, including 60 on Saturday

ISLAMABAD: US President Donald Trump said on Sunday he could use American trade leverage to broker a peace deal between Iran and Israel, drawing a parallel to his administration’s role in facilitating a ceasefire between India and Pakistan last month.

The renewed conflict saw Iran and Israel exchanging missile and drone strikes over the past three days.

Iranian officials report at least 138 people have been killed in Israel’s onslaught since Friday, including 60 on Saturday, half of them children, when a missile brought down a 14-story apartment block in Tehran. Israel has reported at least 13 deaths.

“Iran and Israel should make a deal, and will make a deal, just like I got India and Pakistan to make,” Trump wrote on Truth Social. “In that case by using TRADE with the United States to bring reason, cohesion, and sanity into the talks with two excellent leaders who were able to quickly make a decision and STOP!”

Trump’s reference to India and Pakistan pertains to a brief military confrontation between the nuclear-armed neighbors in May, which ended with a US-facilitated ceasefire on May 10. Washington said trade and security assurances were key to the de-escalation.

He also cited other conflicts, between Serbia and Kosovo, and disputes over the Nile dam involving Egypt and Ethiopia, saying his interventions helped maintain peace “at least for now.”

“Likewise, we will have PEACE, soon, between Israel and Iran!” Trump added. “Many calls and meetings now taking place.”

Since Friday, Pakistan’s government has repeatedly pledged solidarity with Iran but urged its citizens to postpone travel to Iran and Iraq until the security situation improves. 

On Saturday, Islamabad issued a formal travel advisory asking Pakistanis to avoid travel to Iran “for a limited period” due to the Israeli attacks.

Pakistan has also condemned the Israeli strikes, calling them an unjustified violation of Iranian sovereignty, and has urged the international community to help de-escalate tensions through dialogue.


Two police officers killed, two wounded in ambush in Pakistan’s Balochistan province

Updated 28 min 30 sec ago
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Two police officers killed, two wounded in ambush in Pakistan’s Balochistan province

  • Attack, claimed by BRA separatists, took place late on Saturday in Sui, mountain town about 50km from Dera Bugti city
  • Police were ambushed after had rushed to the area in two vehicles to respond to reports of a grenade explosion

QUETTA: Two police officers were killed and two others injured when gunmen ambushed a police patrol in Pakistan’s southwestern Balochistan province, officials said on Sunday. 

The attack took place late on Saturday in Sui, a mountainous town about 50km from Dera Bugti city where police had rushed to respond to reports of a grenade explosion.

Jalab Khan, station house officer at Sui Police, said officers were traveling in two vehicles when they were ambushed.

“Nearly a dozen armed men were hiding behind a large rock and attacked our vehicles with heavy gunfire, hand grenades and rocket-propelled grenades,” Khan told Arab News.

“Two policemen were killed on the spot and two sustained bullet wounds,” he said, adding that the attackers fled under the cover of darkness.

The Baloch Republican Army (BRA), an ethnic Baloch separatist group, claimed responsibility for the attack. The BRA has been involved in multiple attacks on security forces and gas infrastructure in Dera Bugti, one of Pakistan’s key natural gas-producing districts.

The group emerged after the killing of veteran Baloch nationalist leader Nawab Akbar Khan Bugti during a military operation in 2006.

Balochistan, which borders Afghanistan and Iran, is a mineral-rich region that is home to Beijing’s investment in the Gwadar deep water port and other projects. It is Pakistan’s largest province by size but smallest by population and the most impoverished. It has long been the site of a separatist insurgency by groups like the BRA, who are fighting for independence.

Pakistan accuses neighboring India and Afghanistan of supporting Baloch separatist militants, a claim they deny. Islamabad also says neighboring Iran does not do enough against militants operating on their shared border. 

“The slain policemen were local residents of Dera Bugti and their bodies have been handed over to families for burial,” said Atta Tareen, the district police officer for Dera Bugti.

A first information police report hasd been registered and Balochistan’s Counter Terrorism Department was leading the investigation, Tareen added.


Bitcoin pioneer Michael Saylor holds ‘landmark’ talks with Pakistan Crypto Council officials

Updated 15 June 2025
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Bitcoin pioneer Michael Saylor holds ‘landmark’ talks with Pakistan Crypto Council officials

  • Pakistan set up PCC in March to create legal framework for cryptocurrency trading in bid to lure international investment
  • Michael Saylor, bitcoin advocate and billionaire US business executive, speaks to Pakistani ministers for finance, crypto

KARACHI: Pakistani officials held a “landmark discussion” this week with Michael Saylor, bitcoin advocate and billionaire US business executive, on using digital currencies to strengthen Pakistan’s financial resilience and its digital economy, according to a statement released on Sunday. 

Pakistan set up the Pakistan Crypto Council (PCC) in March to create a legal framework for cryptocurrency trading in a bid to lure international investment. In April, Pakistan introduced its first-ever policy framework to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan. The policy has been formulated to align with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF).

Last month, the government approved setting up the Pakistan Virtual Assets Regulatory Authority (PVARA), a specialized regulatory body to oversee blockchain-based financial infrastructure, and separately also unveiled the country’s first government-led strategic bitcoin reserve at the Bitcoin 2025 conference in Las Vegas.

Talks this week between Saylor and Pakistan’s Finance Minister Muhammad Aurangzeb and Minister of State for Crypto and Blockchain Bilal Bin Saqib focused on how bitcoin could be used as part of sovereign reserves and monetary policy.

“Pakistan aspires to lead the Global South in the development and adoption of digital assets, setting a benchmark for innovation, regulation, and inclusive growth in the digital economy,” Finance Minister Aurangzeb, who is the chairman of the PCC, was quoted as saying in a statement released by Saqib’s office.

Saylor, one of the world’s most prominent corporate bitcoin investors, welcomed Pakistan’s move to explore digital assets, the statement added.

“Pakistan has many brilliant people. It also has commitment and clarity needed by businesses globally … Bitcoin is the strongest asset for long-term national resilience,” Saylor said during the meeting, according to the statement, adding that emerging markets like Pakistan could benefit from early adoption of blockchain finance.

Saylor also reportedly praised Pakistan’s efforts to take a “forward-looking, innovation-friendly stance” in the global digital economy and welcomed the opportunity to advise and support ongoing developments in the country related to digital assets. 

Saylor’s company, Strategy, formerly MicroStrategy, is the world’s largest corporate holder of bitcoin, reportedly holding about 582,000 BTC valued at over $62 billion as of June 2025. The company’s market capitalization has risen from $1.2 billion to over $105 billion since it adopted bitcoin as a core asset in 2020.


Pakistan forms committee to tackle possible economic fallout of Israel-Iran conflict — adviser

Updated 15 June 2025
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Pakistan forms committee to tackle possible economic fallout of Israel-Iran conflict — adviser

  • Oil prices jump 7 percent on fears of disrupted Middle East exports
  • Analysts warn of economic and security risks for Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif has formed a high-level committee led by the finance minister to monitor any possible economic impact of the escalating conflict between Israel and Iran, a senior government adviser said on Sunday, as rising oil prices threaten to add new pressure on the South Asian nation’s fragile economy.

Oil prices have climbed about 7 percent since Friday, with Brent crude closing at $74.23 a barrel after hitting a session high of $78.50, amid fears of supply disruptions if Middle East tensions escalate further.

“The prime minister has constituted a committee under the supervision of the finance minister, which will monitor the situation,” Khurram Schehzad, an adviser at the finance ministry, told Arab News.

“The committee will assess the impact of the changes and volatility in oil prices on fiscal and external sides, and devise a strategy to pacify the impacts on Pakistan’s economy.”

Pakistan relies heavily on imported oil, and any sustained spike in prices could widen its current account deficit and push inflation higher at a time when the country is struggling with low foreign reserves and slow growth.

Israel and Iran launched fresh attacks on each other overnight into Sunday, killing scores. The conflict started on Friday when Israel launched a massive wave of attacks targeting Iranian nuclear and military facilities but also hitting residential areas, sparking retaliation and fears of a broader regional conflict.

A 909 kilometer (565 mile) long international boundary separates Iran’s southeastern Sistan-Baluchestan province from Pakistan’s southwestern Balochistan province. 

“Israel-Iran conflict presents complex challenges for Pakistan as rising oil prices may increase import costs and inflation, influencing monetary policy and growth, while disruptions to key routes like the Strait of Hormuz can affect energy supplies and critical projects,” said Khaqan Najeeb, an economist and former finance ministry adviser.

“It can potentially affect consumer purchasing power and production costs ... Possible disruptions to shipping routes and higher freight charges might result in delays to imports and exports, thereby exerting additional pressure on Pakistan’s external sector.”

DIPLOMATIC BALANCING

As the crisis deepens, analysts widely believe Islamabad should maintain “careful diplomatic balancing” between its ties with Iran and its other partners in the Gulf, as well as the United States.

“Diplomatically, Pakistan has to navigate a balanced and principled stance, honoring its historic ties with Iran alongside its strategic relationships with the US and Gulf partners, emphasizing dialogue and regional stability.”

Former Defense Secretary Lt Gen (retired) Naeem Lodhi said Israel was unlikely to target Pakistan directly but an expanding conflict could complicate matters for Islamabad, adding that it should remain vigilant but avoid “deeper” involvement.

“If the war expands to include more Middle Eastern countries, some of which are friendly to Pakistan, then it would be a difficult proposition for Islamabad... whose side it takes,” Lodhi added. 

Former Foreign Secretary Aizaz Ahmed Chaudhry said Pakistan would respond “forcefully” if directly targeted.

“Israel knows that Pakistan has the capacity to hit back hard,” Chaudhry said, referring to a May 2025 military confrontation with India in which Islamabad retaliated to New Delhi’s strikes, taking down fighter jets and hitting airfields, air bases and other military facilities.

Pakistan’s former ambassador to Iran, Asif Durrani, warned that the crisis could spill over if not contained.

“Not only Pakistan, but the entire Middle East and North Africa (MENA) region can be engulfed if the ongoing spat between Israel and Iran turns into an all-out war,” Durrani said.

However, he said the likelihood of a refugee crisis was limited unless the conflict escalated into a ground invasion.

“A refugee influx is possible if it becomes a full-fledged war, but Israel or the United States are unlikely to commit boots on the ground in Iran,” Durrani added. 

Qamar Cheema, executive director of the Sanober Institute think tank, said Pakistani security forces should increase patrols and surveillance in border districts as the conflict could impact militant groups operating along the Iran-Pakistan border region, such as Baloch separatists and other sectarian outfits.

“Whenever such a situation arises, separatist and sectarian outfits often try to take advantage of it, either by increasing their activities or by shifting them from their hideouts inside Iranian territories,” he said. 

“Their movement is likely to intensify if the threat reaches the border region.”


Pakistan launches new pharma export council to boost overseas sales

Updated 15 June 2025
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Pakistan launches new pharma export council to boost overseas sales

  • Industry aims to raise exports from $700 million to $3 billion
  • Government pledges policy support and facilitation desk

ISLAMABAD: Pakistan has this month established a new Pharmaceutical Export Promotion Council (PharmEx Pakistan) in a bid to expand exports and enhance the global competitiveness of its drug manufacturers, the country’s commerce minister said.

Pakistan’s pharmaceutical industry, valued at about $4 billion domestically, has recorded steady growth in exports in recent years but remains a relatively small player globally.

Commerce Minister Jam Kamal Khan announced the formation of the new council under the Trade Development Authority of Pakistan (TDAP) while addressing a gathering organized by the Pakistan Pharmaceutical Manufacturing Association (PPMA) earlier this month. 

“The pharmaceutical sector has huge export potential, and PharmEx Pakistan is just one or two steps away from becoming operational,” Khan was quoted as saying by state-run Pakistan Television, adding that the government would continue to facilitate the industry in achieving higher international sales.

At the event, PPMA Chairman Touqeer ul Haq said the new council would work as a public-private initiative to strengthen compliance with international standards, improve market access, and showcase Pakistani products abroad.

Haq identified Afghanistan as a critical export destination and welcomed minister Khan’s assurance of better coordination to keep cross-border trade smooth.

In addition to the new council, the government will also set up an Exporter Facilitation Desk at the ministry of commerce to resolve urgent problems faced by pharma exporters and ensure direct support when needed, minister Khan said.

The setting up of PharmEx is part of Islamabad’s broader push to diversify exports beyond traditional sectors such as textiles, rice and sports goods, amid persistent current account pressures and the need to earn more foreign exchange.

According to PPMA data, pharmaceutical exports increased from $270 million in 2020–21 to about $355 million in the current fiscal year 2024–25, and industry leaders say the country has the potential to reach $3 billion in annual exports if regulatory hurdles and market access barriers are addressed.

Pakistan produces over 90 percent of its medicines locally, supplying a large portion of the country’s health care needs and serving niche markets in Afghanistan, Central Asia and parts of Africa and the Middle East.

The industry, however, faces challenges such as high input costs, regulatory bottlenecks, and tough global competition.