Pakistan eases Iran trade, secures Hormuz passage

ISLAMABAD, Pakistan (MNTV) — Pakistan has launched a coordinated economic and diplomatic response to the escalating Gulf crisis, easing trade restrictions with Iran while securing a narrowly negotiated shipping corridor through the Strait of Hormuz, where close to 2,000 vessels remain stranded and global maritime flows have sharply contracted.

According to Al Jazeera, Iran has agreed to allow 20 Pakistani-flagged ships to transit the strait, with two vessels permitted to pass daily under a special arrangement announced by Foreign Minister Ishaq Dar. He described the deal as a “constructive gesture” and a signal that limited cooperation remains possible even as the conflict disrupts one of the world’s most critical trade arteries.

The breakthrough comes at a moment of severe disruption. Al Jazeera reports that shipping traffic through Hormuz has dropped by nearly 90% since the war began, with only around 150 vessels managing to pass, roughly equal to a single day’s normal traffic.

Thousands of ships remain stuck on either side, waiting for clearance, insurance cover or political guarantees. Oil prices have surged above $100 a barrel, reflecting tightening supplies and rising risk premiums across global markets.

Alongside the maritime arrangement, Islamabad has moved swiftly on the trade front. According to Middle East Eye, Pakistan has introduced a temporary relaxation of strict banking regulations that had long hampered trade with Iran under sanctions.

The three-month exemption, effective from late March, allows exporters to bypass requirements such as letters of credit, bank guarantees and advance payment conditions, which had made routine transactions costly and uncertain.

This policy shift is significant because it addresses a structural bottleneck in Pakistan-Iran trade. While commerce between the two countries was never formally prohibited, financial channels were largely frozen due to international sanctions on Iran.

As a result, exporters often relied on informal mechanisms, advance payments or third-party arrangements, raising transaction costs and limiting volumes. By suspending these requirements, Islamabad is attempting to unlock trade flows at a time when regional supply chains are under extraordinary strain.

Middle East Eye reports that the exemption covers a wide range of goods, particularly food and agricultural products. These include rice, fruits, vegetables, meat, seafood, maize, onions, citrus and processed food items, as well as pharmaceuticals and other essential commodities. The move is aimed at both stabilizing domestic markets and meeting demand in Iran, where supply disruptions have intensified amid the war.

Crucially, the policy also allows Pakistan to use Iran as a transit corridor to reach Central Asian republics and Azerbaijan. This aspect is strategically important. With traditional land routes through Afghanistan facing uncertainty and maritime routes through the Gulf under pressure, Iran offers an alternative pathway for Pakistani exports to move northward.

Middle East Eye notes that this could help sustain Pakistan’s export momentum at a time when conventional logistics networks are faltering. The dual strategy of easing trade and securing shipping access reflects growing urgency within Pakistan. The country is heavily dependent on Gulf energy supplies, and the disruption in Hormuz has already triggered fuel shortages and price pressures.

According to Middle East Eye, the government has introduced emergency measures including energy conservation steps, reduced working hours and efforts to prioritize essential imports and exports.

At the same time, Islamabad is trying to convert crisis into opportunity. By facilitating food exports to Iran and beyond, Pakistan aims to position itself as a supplier in a region facing acute shortages. The easing of export rules is also expected to benefit sectors that had struggled with limited market access due to financial constraints.

The Hormuz passage deal adds a critical maritime dimension to this strategy. According to Al Jazeera, Iran has not fully closed the strait but is instead regulating access through a controlled system.

Ships seeking passage must submit detailed information about cargo and crew, obtain clearance codes and, in many cases, move under escort through Iranian-monitored waters. This effectively turns Hormuz into a managed corridor rather than an open sea lane.

Reports cited by Al Jazeera suggest that some vessels have paid substantial sums to secure passage, highlighting the emergence of a quasi-toll system. There are also indications that Iran is considering formal mechanisms to regulate and monetize transit through the strait, reflecting both economic necessity and strategic leverage.

In this context, Pakistan’s agreement for 20 ships, though limited in scale, is significant. It provides a degree of predictability for Pakistani shipping and signals that diplomatic engagement can yield tangible results even in a highly volatile environment. Dar’s public messaging, which included outreach to both Iranian and U.S. officials, suggests Islamabad is also seeking to play a broader mediating role.

The regional dimension of the crisis is becoming increasingly evident. Al Jazeera notes that other countries, including Malaysia, have also sought and obtained limited passage for their vessels, indicating that Iran is selectively allowing transit based on bilateral understandings. This approach enables Tehran to maintain control over the strait while avoiding a complete shutdown that could provoke wider international escalation.

For Pakistan, the stakes are particularly high. The country shares a nearly 900-kilometer border with Iran and has long viewed it as both a neighbor and a gateway to broader regional markets. The current crisis has reinforced the importance of this relationship, as Islamabad seeks to diversify trade routes and reduce vulnerability to disruptions in the Gulf.

The economic impact of the Hormuz disruption extends far beyond shipping. The strait is a key conduit for global energy supplies, and any restriction on its use has immediate consequences for oil prices, inflation and food security worldwide. Rising fuel costs feed into higher transportation and production expenses, which in turn affect the availability and affordability of basic goods.

Pakistan is already feeling these pressures. The country’s reliance on imported energy makes it particularly vulnerable to price shocks, while its export sectors depend on stable logistics and competitive costs. By easing trade with Iran and securing limited shipping access, Islamabad is attempting to mitigate these risks and maintain a degree of economic stability.

At a broader level, the developments highlight how regional actors are adapting to a rapidly changing geopolitical landscape. The conflict has disrupted established trade patterns and forced countries to explore alternative arrangements, whether through bilateral deals, regulatory adjustments or diplomatic engagement.

Pakistan’s approach combines all three elements. The relaxation of banking rules addresses immediate trade bottlenecks. The Hormuz agreement ensures at least partial continuity of maritime flows. And the diplomatic outreach positions Islamabad as a stakeholder in efforts to manage and possibly de-escalate the crisis.

However, the limitations of these measures are clear. Twenty ships represent only a fraction of normal traffic through Hormuz, and the three-month trade exemption is a temporary fix rather than a long-term solution. Much will depend on how the conflict evolves and whether broader arrangements can be reached to restore stability in the region.

For now, Pakistan’s actions underscore a pragmatic response to an extraordinary situation. By leveraging its geographic position, economic needs and diplomatic channels, Islamabad is seeking to navigate a crisis that has turned one of the world’s most vital trade routes into a tightly controlled and uncertain passage.

As Middle East Eye and Al Jazeera reporting together suggest, the country is balancing immediate economic survival with longer-term strategic positioning, using both trade policy and diplomacy to manage the fallout from a conflict whose impact is being felt far beyond the battlefield.