Pak-Iran Land Trade at Taftan: Impediments and Prospects

Abstract

In 1958, Pakistan and Iran signed an agreement allowing limited tax free trade at the Taftan/ Mirjaveh land trade route in order to meet the requirements of people residing along Pak-Iran border.  The Trade Gate known as Zero Point Gate, used to open thrice a week to import Iranian edible commodities and hydrocarbon products. Trade via this Gate had largely been undocumented since inception. Documenting and taxing trade, of course, with special concessions, has been under consideration of the government, desiring to boost revenue, trade activities and also establishment of a proper mechanism. Taftan, Customs’ Station has been the largest bilateral land trade route, in terms of revenue generation, collecting at least Rs1.20bn tax and duties, each month. For instance, imports from Iran by Zero Point Gate at Taftan stood at Rs41.14bn, during October, 2020 - March, 2021. Exports from Pakistan were far lower, worth Rs12.58bn, than imports from Iran, indicating a huge potential of exports from Pakistan. Need not to mention that current recorded Pak-Iran bilateral trade is worth $359 million per annum including exports to Iran amounting $36 million against its imports at $ 323 million.