The Senate Standing Committee on Finance has increased the issue of 600 Iranian trucks stranded at the Pakistan-Iran border to Prime Minister Shehbaz Sharif, recommending that the matter be reviewed by the federal cabinet.
During a meeting chaired by Senator Saleem Mandviwalla at Parliament House on Wednesday, Iranian diplomats expressed concerns that Pakistan’s implementation of a bank guarantee requirement on Iranian trucks had resulted in daily losses of $2.2 million.
The diplomats highlighted that despite the removal of this condition under a 2008 agreement, Pakistan had replaced it.
They further noted that while Iran had not placed any such restrictions on Pakistani trucks, the policy had severely disrupted mutual trade.
Over the past six months, the number of Iranian trucks entering Pakistan has dropped from 600 to 400, with some drivers left waiting at the border for over a month.
They also emphasized that free movement is a fundamental part of mutual trade agreements and called for reopening the Rimdan crossing to ease border trade.
Senator Saleem Mandviwalla acknowledged that trade between Pakistan and Iran operates on a barter system, but stated that complex customs regulations had stalled transactions.
Senator Farooq Naek strongly criticized the situation, calling it an “eye-opener and a disgrace,” and questioned why foreign diplomats had to remind Pakistan how to manage its trade affairs.
He expressed frustration over governance, stating that no one seemed to be working in the national interest.
Similarly, Senator Shibli Faraz blamed the bureaucracy for creating obstacles rather than facilitating trade. He also criticized the Federal Board of Revenue (FBR) for failing to address the backlog of Iranian trucks.
Senator Anusha Rahman accused customs officials of creating unnecessary hurdles, alleging that they had turned customs procedures into a personal business by demanding excessive documents and forcing traders through bureaucratic delays.
In response, customs officials denied that the bank guarantee was affecting trade, stating that Iranian trucks were granted clearance without such requirements.
They explained that goods cleared at Taftan did not need a bank guarantee and alleged Iranian traders of trying to transport duty-free goods from Taftan to Quetta, which was against regulations.
Officials further clarified that the bank guarantee requirement applied to bilateral trade, not barter trade, and that third-party goods could not enter Pakistan under the barter system.
Subsequently, the Senate panel decided to escalate the issue to the prime minister and urged the federal cabinet to intervene to resolve the crisis.