The Federal Board of Revenue (FBR) has officially announced the Azerbaijan-Pakistan Transit Trade Rules 2024, a landmark step towards enhancing bilateral and transit trade between the two nations.
These regulations, issued via SRO 25(I)/2025 on Thursday, facilitate the streamlined processing of Azerbaijan’s transit trade cargo through Pakistan’s key ports, including Karachi Port, Port Muhammad Bin Qasim, and Gwadar Port. This development stems from the Azerbaijan-Pakistan Transit Trade Agreement 2024, reflecting the mutual commitment of both countries to boost economic collaboration.
Under the new rules, vehicles registered in Azerbaijan and equipped with valid permits will be allowed entry into Pakistan to transport transit and bilateral trade cargo. Remarkably, these vehicles are exempted from providing financial security for duties and taxes on a reciprocal basis, as mutually agreed by Azerbaijan and Pakistan. This provision aims to simplify procedures, reduce costs, and encourage greater trade activity between the two nations.
The rules mandate that all transport operators and Customs clearing agents handling transit goods establish and maintain a “Revolving Insurance Guarantee PD Account” with Customs authorities. This measure is designed to ensure accountability and efficient handling of transit operations. Additionally, the Directorate General of Reforms and Automation in Karachi is tasked with generating user IDs for relevant entities, enabling seamless electronic submission of registration details through the Customs Computerized System. These entities include foreign traders, government organizations, United Nations agencies, and diplomatic missions.
The regulations further specify that vehicles engaged in transit and bilateral trade must be licensed by competent authorities of the contracting parties. These vehicles must carry valid permits issued in a prescribed format when entering or exiting Pakistan. The responsibility for issuing and regulating these permits at respective land border Customs stations lies with the Directorate of Transit Trade in Peshawar, Quetta, and Gwadar.
This initiative underscores the strategic importance of Pakistan as a trade corridor, leveraging its ports and infrastructure to facilitate international commerce. By fostering a more efficient and secure transit trade environment, the Azerbaijan-Pakistan Transit Trade Rules 2024 represent a significant step in strengthening economic ties and expanding regional trade opportunities.