Pakistan’s business community is under mounting strain as the conflict involving Iran intensifies, with the collapse of a ceasefire leaving export cargo stranded at the border, according to The New York Times. Shipments including mangoes and textiles bound for Iran have been delayed, and some fruit has already spoiled. Business leaders say peace would not only help ease energy prices but also allow Pakistan to tap the trade potential of its roughly 900-kilometer border with Iran. Those expectations had gained importance as Pakistan’s economy remained under pressure from strained ties with India and Afghanistan. At the same time, long-running U.S. sanctions on Iran continue to restrict banking settlement, energy cooperation, and regular trade flows between the two countries. As a result, a large share of commerce has had to move through barter, third-country re-export routes, or smuggling channels. Pakistani industry groups argue that if sanctions on Iran are eased in the future, bilateral trade could expand materially, covering exports such as rice, textiles, medicines, and medical equipment from Pakistan, while Iran could supply lower-cost oil and natural gas. For now, several businesspeople say they are staying on the sidelines until the situation becomes clearer.
Pakistan’s business community is facing growing pressure as the war involving Iran escalates, according to The New York Times.
After a ceasefire agreement broke down, shipments headed to Iran, including mangoes and textiles, were left stranded at the border. Some of the fruit has already spoiled.
Business representatives said peace would mean more than lower energy prices. It would also give Pakistan a chance to better develop the trade potential along its roughly 900-kilometer border with Iran.
Pakistan’s economy has remained under strain because of factors including tense relations with India and Afghanistan. Against that backdrop, businesses had hoped deeper trade ties with Iran could help ease some of the pressure.
That path has been heavily constrained by long-standing U.S. sanctions on Iran, which have restricted banking settlement, energy cooperation, and broader trade between the two countries. A large share of commerce has therefore had to rely on barter, third-country re-export arrangements, or smuggling channels.
Pakistan’s business community says bilateral trade could expand significantly if sanctions on Iran are relaxed in the future. Pakistan could export rice, textiles, medicines, and medical equipment to Iran, while Iran could supply cheaper oil and natural gas to Pakistan. Iranian post-war reconstruction could also create openings for Pakistani companies.
For now, several entrepreneurs said they will continue to wait until the situation becomes clearer.
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