Iran-Pakistan trade and cross-border commerce affected by sanctions-related banking restrictionsIran-Pakistan trade faces uncertainty over banking restrictions as the land border remains open

Iranian exports to Pakistan could be temporarily suspended because of banking restrictions linked to international sanctions, an Iranian trade official has warned. Imports from Pakistan into Iran, however, are continuing.

Peyman Sanandaji, head of the transport commission at the Tehran Chamber of Commerce, said on Saturday that the land trade border between the two countries remained open.

He rejected a circulated letter claiming that a border crossing had been closed, clarifying that the disruption stemmed from banking procedures rather than a shutdown of the border.

Sanandaji said Pakistani importers were required to submit electronic import forms to their banks for goods purchased from Iran. However, sanctions targeting Iranian banks have complicated the process, creating obstacles for cross-border trade.

He warned that Iranian exports to Pakistan could effectively come to a halt if the banking restrictions remained unresolved.

The potential disruption highlights the challenges sanctions-related financial restrictions pose for trade between the neighbouring countries, even when border crossings remain operational.

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