Why has Pakistan temporarily closed trade routes with Iran?

Dubai: Pakistan has temporarily suspended commercial trade through two major border crossings with Iran, leaving around 2,000 trucks stranded and raising concerns over possible shortages and higher prices of liquefied petroleum gas (LPG) and other essential commodities.

The suspension affects the Gabd-Rimdan and Taftan crossings, two important routes for trade between the neighbouring countries. Officials say the restrictions are aimed at addressing security concerns, preventing smuggling and improving border management.

The Balochistan government said on Sunday that discussions were under way between senior Pakistani and Iranian officials to resolve administrative issues and reopen the crossings as soon as possible.

Why were the borders closed?

Shahid Rind, adviser to the Balochistan chief minister on media and political affairs, said the temporary closure was necessary to strengthen security, curb smuggling and establish a more effective border management system.

He rejected rumours circulating on social media about the closure and urged the public to rely on verified information.

Rind said progress was being made in talks between officials of the two countries.

“In view of the current progress, the Pakistan-Iran border is likely to reopen soon,” he said.

He added that a coordinated system was being developed to improve border operations, prevent smuggling and maintain law and order.

According to Rind, better border management would also help improve facilities for traders and bring greater stability to border communities.

What Iran says

Iranian Foreign Ministry spokesperson Esmail Baqaei attributed the disruption to technical issues, according to the state-run Irna news agency. He said both countries were holding consultations to restore normal operations.

Around 2,000 trucks stranded

The sudden suspension has disrupted the movement of commercial goods, with trucks carrying LPG, rice, fresh fruit and other commodities reportedly stranded on both sides of the border, Dawn online reported.

The Quetta Chamber of Commerce and Industry said approximately 2,000 trucks travelling between Pakistan and Iran had been affected.

The chamber warned that prolonged restrictions could cause substantial financial losses to traders and businesses dependent on cross-border commerce. It has advised businesses involved in trade with Iran to suspend new import and export orders until further notice.

The Ministry of Commerce issued a memorandum on Friday withdrawing an earlier order dated October 3, effectively suspending commercial operations through the designated crossings.

However, passenger movement through the Rimdan-Gabd crossing reportedly remains operational, according to Iran’s Wana news agency.

Biggest concern

One of the biggest concerns is the possible impact on Pakistan’s LPG supplies. The Gabd-Rimdan crossing has emerged as an important route for energy imports, with reports indicating that more than 4,000 tonnes of LPG were entering Pakistan daily through the crossing.

Traders and energy sector representatives have warned that an extended closure could disrupt supplies to Karachi and other parts of the country. Reduced imports could also put upward pressure on LPG prices in the open market, particularly if alternative supply arrangements are not made.

The disruption comes as the Taftan route has already been experiencing difficulties because of security challenges in Balochistan.

Local business representatives fear that continued restrictions could affect trade revenues, increase transportation costs and threaten the livelihoods of people dependent on border commerce.

Trade relations under pressure

The suspension comes despite recent efforts by Islamabad and Tehran to strengthen bilateral trade and improve border connectivity.

Since March, both countries have introduced measures to simplify customs procedures, improve transit arrangements and facilitate commercial movement.

In August, an Iranian delegation led by Trade and Industry Minister Mohammad Atabak visited Islamabad for the 10th session of the Pakistan-Iran Joint Trade Committee.

The delegation also met Prime Minister Shehbaz Sharif, with both sides agreeing to expand trade by improving logistics, harmonising customs procedures and working towards round-the-clock border operations.

However, traders say poor road infrastructure and recurring security incidents have continued to affect several border routes.

Gwadar Chamber of Commerce and Industry President Jiand Hoot previously said trade through the Panjgur and Mand-Radig crossings was virtually non-existent because of inadequate roads and incidents involving the burning of vehicles.

When will trade resume?

Pakistani and Iranian officials have indicated that the suspension is temporary, but no specific date has been announced for the reopening of commercial trade.

The Balochistan government says talks are progressing and that the crossings could reopen soon once the outstanding administrative and security issues are resolved.