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Pakistan eases Iran trade with Taftan railway customs designation
The decision follows a telephone conversation between the head of Iran's railway company and his Pakistani counterpart, as well as subsequent correspondence with Pakistan Railways on activating the Taftan crossing, IRNA reported.
Under an official notification issued by the FBR, Taftan railway station, located on an 11.75-hectare site, will operate as a land customs station for the loading, unloading, clearance and customs processing of imported and exported goods.
The notification also defines the geographical boundaries of the facility, formally integrating the Taftan rail terminal into Pakistan's customs network.
Taftan, Pakistan's main land crossing on the border with Iran, has long held strategic importance but has operated below its full potential in recent years because of infrastructure constraints and the lack of comprehensive customs facilities.
Experts say the formal launch of a rail customs office at the site will facilitate the movement of goods by rail while helping reduce transportation costs, speed up customs clearance and improve the management of border trade.
Other objectives of the measure include curbing the use of unofficial trade routes and smuggling, integrating documentation, inspection and customs clearance procedures, and reducing reliance on informal trade channels.
The decision comes as Iran and Pakistan have long discussed boosting bilateral trade, but progress has been constrained by international sanctions on Tehran, weak banking links and logistical barriers. The Islamic Republic is focusing on removing infrastructure bottlenecks, expanding border trade and activating barter mechanisms as part of a roadmap to increase bilateral trade with Pakistan to $10 billion.
Achieving this target, however, remains challenging. Bilateral trade between Iran and Pakistan was estimated at roughly $2.8 billion in the fiscal year ending June 2025, according to Pakistani media reports citing official data — though some Iranian sources place the figure closer to $3.1 billion for the overlapping Iranian calendar year, reflecting minor discrepancies in national accounting methods.
Economic analysts believe that directly linking rail infrastructure with customs services will improve the efficiency of the transport chain, facilitate the movement of bulk commodities, including agricultural products, minerals and petroleum products, and expand the capacity of formal trade between the two countries.
Observers say the designation of Taftan railway station as a land customs station forms part of Pakistan's broader policy of expanding legal trade with Iran and making greater use of rail transport capacity along the two countries’ shared border.