Pakistan halts trade with Iran at Taftan and Gabd-Rimdan; officials call it temporary as cargo piles up

Key takeaways

• Pakistan has suspended trade with Iran through the official Taftan (Chagai district) and Gabd-Rimdan (near Gwadar) border crossings, Dawn and Arab News report.
• A Ministry of Commerce memorandum dated Friday, 16 October, withdrew an earlier 3 October order on Iran trade with immediate effect, according to Dawn.
• Balochistan officials say the step is temporary and meant to tighten security and stop smuggling; Iran's foreign ministry also calls it temporary but blames "technical issues".
• Traders say hundreds of trucks and more than 2,000 containers are stranded, and warn of losses and possible LPG shortages inside Pakistan.
• No reopening date has been announced.

What happened

Trade between Pakistan and Iran across the two main official crossings in Balochistan came to a halt at the end of the week. Dawn reported that the Ministry of Commerce issued a memorandum on Friday withdrawing an order dated 3 October that had governed trade with Iran.

Iranian officials confirmed the stop from their side. Seyed Hossein Hosseini, director general of the transit office at Iran's road transport organisation, told the Iranian agency WANA that commercial operations at Rimdan-Gabd were halted on Saturday morning. Passenger traffic through that crossing is still running, WANA said.

What officials are saying

The two governments have given different reasons for the closure, and neither has published a timeline.

Impact on traders and supplies

• Stranded cargo: Ayoub Miryani, a former president of the Quetta Chamber of Commerce and Industry, told Arab News that more than 2,000 containers are stuck at Gabd-Rimdan. Dawn reports hundreds of freight vehicles carrying LPG, rice, fresh fruit and other goods are waiting on both sides.
• No new orders: The Quetta Chamber has advised its members to stop placing new import and export orders with Iran until further notice, Dawn says.
• No warning: An LPG trader in Taftan told Arab News the decision came without prior notice, and a clearing agent said Pakistani traders had already paid their Iranian suppliers.
• Energy: Gabd-Rimdan has become a key route for LPG, with more than 4,000 tonnes reportedly imported through it each day, according to Dawn. Traders warn the closure could worsen LPG shortages in Karachi and push up open-market prices.

Background

Since March, Islamabad and Tehran have taken several steps to ease border trade, including simpler customs procedures, formalising Taftan as a customs station and new transit routes, against the backdrop of the US-Iran war that has strained the region's economies, Dawn notes. In August, Iran's trade minister visited Islamabad, and both sides agreed to keep crossings open round the clock. Trade through Gabd-Rimdan had also halted completely for a period earlier this year.

What to watch

• Whether Pakistan and Iran announce a reopening date or a new border-management system, as Balochistan officials have suggested.
• LPG availability and prices in Balochistan and Karachi over the coming days.
• Any statement from the federal Ministry of Commerce or Foreign Office explaining the decision.

This is a developing story and will be updated when officials announce a reopening.