Govt weighs freight subsidies as Iran transit disruptions, Afghan border closure hit trade
ISLAMABAD:
Pakistan is considering routing potato exports to Central Asia through China as regional tensions disrupt traditional trade corridors and increase transportation costs for exporters.
The proposal was discussed during the fourth meeting of the Committee on Potato Export, chaired by Federal Minister for National Food Security and Research Rana Tanveer Hussain to review the evolving export situation and finalise measures aimed at protecting farmers’ interests.
According to a statement issued by the Ministry of National Food Security and Research on Wednesday, the meeting was held against the backdrop of growing logistical constraints affecting Pakistan’s access to regional markets.
Participants were informed that the prevailing war-like situation in Iran has rendered traditional transit routes unsafe, while the closure of the Afghanistan border has significantly restricted overland connectivity with Central Asian markets. At the same time, limited access to certain Gulf routes has further complicated export operations for Pakistani traders.
In view of these developments, the committee reviewed alternative and viable corridors to sustain export momentum. Officials noted that, under the current circumstances, the most feasible option for accessing Central Asian markets is through China.
The government is engaging relevant authorities to facilitate smoother transit through this corridor to ensure the continuity of export flows.
The meeting also discussed the impact of regional instability on transportation costs. With freight and logistics expenses rising sharply, the minister highlighted the need for targeted government support to exporters.
Hussain said the government was considering transport subsidies and concessional freight support to offset extraordinary costs arising from external disruptions. The objective is to maintain the competitiveness of Pakistani potatoes in international markets despite the increase in logistics expenses.
