Pakistan has operationalised the Gabd border terminal on its frontier with Iran under the international TIR (Transports Internationaux Routiers) system, opening a new trade corridor to Central Asia.

The development enables Pakistan to access Central Asian markets via Iran, bypassing the traditional Afghan route, which has faced repeated disruptions. Officials describe the new route as shorter, safer, and more efficient under current regional conditions.

The first consignment — containers of meat — has already departed from Karachi for Tashkent, Uzbekistan, after completing customs clearance. The shipment is moving under the TIR framework through Iran.

The corridor has been activated by the National Logistics Corporation (NLC), which has previously developed multiple trade routes connecting Pakistan with China, Iran, and Central Asian states.

The move comes amid growing urgency to diversify trade routes. Since October last year, border tensions and intermittent closures along the Afghan frontier have severely disrupted exports to Central Asia, forcing Islamabad to seek alternatives.

Pakistan shares a 900-kilometre border with Iran, where informal trade has long existed. The new corridor aims to formalise and scale this exchange.

To facilitate exports, the government has also temporarily relaxed banking requirements.

Exporters sending certain goods — including food, medicines, and tents — to Iran and Central Asia are exempted from mandatory banking documentation for payments until June 2026, easing procedural bottlenecks.

Uzbekistan has emerged as a key destination for Pakistani meat exports, accounting for 39% of total shipments in fiscal year 2025, surpassing the United Arab Emirates at 26%, according to official data.

Experts say the corridor could become a major economic opportunity, particularly if international sanctions on Iran are eased.

The Gabd terminal, located about 70 kilometres from Gwadar and 120 kilometres from Iran’s Chabahar port, is expected to evolve into a regional trade hub. While challenges around informal trade and transparency remain, the government is focusing on barter trade and alternative routes to boost exports and generate foreign exchange.