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Israel-Tehran conflict cripples border trade between Pakistan and Iran

The ongoing conflict between Israel and Iran has crippled border trade between Pakistan and Iran, transporters and traders said this week, with markets closed and dozens of trucks stranded on the Pakistani side of the border.

Pakistan shares a 959-kilometer border with Iran in its southwest and the trade volume between the two countries stood at $2.8 billion in the last fiscal year that ended in June 2024, according to Pakistani state media.

In Feb., the two neighbors signed an agreement to take the bilateral trade volume to $10 billion, but tensions between Iran and Israel prompted Pakistan to suspend operations at the Taftan border crossing in Balochistan on June 15, mirroring the Iranian side’s restrictions following Israeli airstrikes.

“We’ve been stuck here in Taftan for four to five days, with six to seven vehicles,” Syed Khalil Ahmed, a local transporter, told Reuters on Friday. “We’re waiting for it to reopen so we can load our goods. The market is closed, and there’s a shortage of food and drinks.”

Israel began attacking Iran on June 13, saying its longtime enemy was on the verge of developing nuclear weapons. Iran, which says its nuclear program is only for peaceful purposes, retaliated with missile and drone strikes on Israel.

The Taftan border, a vital trade artery which typically handles daily exchanges in fuel, food and household goods, is now left paralyzed. Local traders said 90 percent of goods in Taftan typically come from Iran.

“With the border closed, no goods are arriving [from Iran] … Local traders with Pakistani passports can’t enter Iran, and Iranian passport holders can only reach the border and return,” said Hajji Shaukat Ali, an importer of liquefied petroleum gas (LPG). “This is hurting local businesses and traders. For us, as major LPG gas traders, some of our vehicles are stuck en route and won’t be able to reach us now.”

Ahmed said they were losing approximately Rs20,000 ($70) per truck daily while facing critical shortages of essential supplies.

“We’re managing with what we have, but it’s tough,” he added.

Filed Under: Business

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