business

Has Pakistan reopened its border with Iran for trade?

Has Pakistan reopened its border with Iran for trade?

Traders say some exports are crossing border after a weeklong halt, but Tehran says its cargo is not getting through.

Islamabad, Pakistan – On a normal day, hundreds of freight trucks and vehicles pass through Pakistan-Iran border crossings, carrying goods and people. On October 17, Islamabad suspended cargo traffic through the Gabd-Rimdan and Taftan crossings in Balochistan province, citing security risks.

On Monday, some goods started to move again.

Mir Naveed Jan Kalmati, president of the Gwadar Chamber of Commerce and Industry, told Al Jazeera that trade “partially resumed this weekend”.

Border officials also cleared consignments that were dated from October 16 or earlier, goods truck association officials said.

Haji Noor Muhammad Shahwani, central president of the Balochistan Goods Truck Owners Association, told Al Jazeera from Quetta that Pakistani exports such as rice and bananas were crossing the border.

Trucks loaded in Iran before the closure, including those carrying liquefied petroleum gas (LPG), were also entering Pakistan, he confirmed to Al Jazeera. “Those that were already loaded are clearing and coming out now. They are coming slowly.”

The halt of Iranian LPG to Pakistan created severe shortages and price spikes in Pakistan, which imports the bulk of its energy from the Middle East. Pakistan’s economy has already been impacted by shipping disruptions in the Strait of Hormuz caused by Iran and its response to the United States-Israel war.

Rizwan Ahmed, a customs clearing agent based near the Gabd-Rimdan crossing said customs had told agents to file declarations for the stranded trucks, which would then be released.

“Customs has given us the go-ahead, saying, ‘Bring in as much cargo as you can,’” Ahmed told Al Jazeera. He did not say whether this applied to goods loaded after October 16.

Ahmed said his own consignment of exports had just left. “We have rice, retail goods, potatoes, bananas,” he told Al Jazeera.

But Iran said changes to import paperwork introduced by Islamabad are holding up its cargo at the crossings.

On Sunday, Iran’s ambassador to Pakistan, Reza Amiri Moghadam, said on X that Iran had placed no restrictions on exports to Pakistan, including LPG, and its borders remained open.

“Changes in the implementation of Pakistan’s E-Form procedure for imports from Iran have created a situation in which traders are effectively and literally unable to dispatch cargo from Iran to Pakistan,” he wrote.

The halt in trade between the two neighbours triggered speculation that the Pakistani step might have been taken under US pressure as part of Washington’s efforts to suffocate Iran economically. Pakistan insisted it was done amid a deteriorating security situation in Balochistan province on the border with Iran.

Gunmen attacked trucks waiting near the Gabd crossing on the Pakistani side of the border on Thursday. The military said 10 attackers were killed in operations around Gabd and Gwadar city, and one civilian died.

The attack came in a province that has faced a separatist rebellion for decades.

Balochistan accounted for 131 of the 225 armed attacks recorded nationwide in September, the highest monthly national total in 12 years, according to the Pakistan Institute for Conflict and Security Studies.

Pakistan’s Ministry of Foreign Affairs was asked about the border at its weekly news briefing on Friday.

“Pakistan, as a responsible member of the international community, adheres to and shall continue to adhere to all applicable sanctions regimes in accordance with international and domestic laws,” spokesman Sajjad Haider Khan said.

He said he did not have direct knowledge of the situation on the ground. He did not say whether the border was open or whether the US had pressured Pakistan over the closure.

The Ministry of Commerce did not respond to Al Jazeera’s request for comment.

A Commerce Ministry memorandum from October 16, seen by Al Jazeera, withdrew its October 3 memorandum extending a waiver on the E-Form, also called the EIF, for imports from Iran. It took effect immediately.

The purpose of the E-Form is to record imports and their payment through banks.

Moghadam, the Iranian envoy, said consultations with Pakistan were under way. Citing reports, he added that several hundred LPG trucks had crossed into Gabd but were yet to be unloaded or cleared.

Shahwani, from the Balochistan Goods Truck Owners Association, said the unloading problem had not been resolved.

“It is probably some problem with the banks, something to do with international trade,” he said.

Bakhtiar Ismail, the deputy commissioner of Chagai in Balochistan, wrote on X on October 18 that the closure was a temporary measure to improve border management and support counterterrorism efforts.

Iranian Ministry of Foreign Affairs spokesman Esmaeil Baghaei cited technical issues, according to the IRNA news agency.

Pakistan has mediated between Washington and Tehran since the US-Israel war on Iran began on February 28. The US has since imposed a naval blockade on Iranian ports, impacting Iranian exports. The US has also imposed wide-ranging economic sanctions to “asphyxiate” the Iranian government and cut off its revenue streams.

Imtiaz Baloch, a security analyst who focuses on Balochistan, told Al Jazeera that the US policy of maximum pressure on Iran had a direct or indirect influence.

That could be done directly, by forcing Pakistan’s government to close the border, or indirectly, through companies in the LPG trade or international banking channels, he said. But he added that no concrete or visible statement had linked the closure to US economic policy.

“My assessment is that security is part of it, procedures or technical glitches are part of it and the banking system is also involved,” Baloch said.

  • border
  • pakistan
  • iran
  • trade
  • trader
  • export
  • halt
  • tehran

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