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Pakistan, Iran Move to Boost Rail Links and Cross-Border Trade Amid Regional Uncertainty

Pakistan and Iran are taking steps to strengthen railway cooperation, improve cross-border connectivity and facilitate trade between the two countries following Iranian Interior Minister Eskandar Momeni’s visit to Islamabad.

During his visit, Momeni met Pakistan’s Federal Minister for Railways Hanif Abbasi. The two sides agreed to expand cooperation in the railway sector and improve regional transport links. They also discussed the possible revival of the Islamabad-Tehran-Istanbul (ITI) freight train service, which could help enhance trade connectivity between Pakistan, Iran and Türkiye.

Pakistan has also taken measures to keep trade with Iran moving amid uncertainty affecting maritime routes in the Gulf. In March 2026, the government allowed exporters to send food and pharmaceutical products to Iran through land routes without the requirement of mandatory banking instruments.

The decision covered 10 food items, including rice, seafood, potatoes, meat, onions, maize, citrus fruits, bananas, tomatoes and frozen chicken. Pharmaceutical products and tents were also included among the non-food items approved for export through land routes without financial instruments.

At the same time, Pakistan permitted rice exporters to use Iran as a transit route for shipments to the Central Asian Republics and Azerbaijan, providing an alternative trade corridor and supporting regional connectivity.

Pakistan also moved to strengthen border management and formalise cross-border trade by establishing a new customs station at Jeerak in Balochistan’s Panjgur district. The facility was designated as the fifth crossing point for trade and transit between Pakistan and Iran. It is intended to regulate passenger movement, document personal baggage and help shift informal cross-border trade into the formal economy.

The new facility follows the opening of the Kohak Cheedgi crossing in January 2025 and the Gabd-Rimdan border point in December 2024, reflecting Pakistan’s broader efforts to expand and regulate trade routes with Iran.

In April 2026, Pakistan’s Ministry of Commerce also notified six transit routes for transporting goods to Iran through the Pakistani seaports of Gwadar and Karachi. The move came amid reports that thousands of containers carrying goods for Iran were awaiting clearance at Pakistani ports.

The latest developments indicate that Pakistan and Iran are seeking to expand formal trade channels, improve transport infrastructure and strengthen regional connectivity through a combination of rail, road and maritime routes.

 

Category: Business, World
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