Taftan railway station notified as land customs facility for Iran trade

ISLAMABAD: The Federal Board of Revenue has designated the Taftan border railway station as a land customs station for import and export activity, a move aimed at facilitating formal rail trade between Pakistan and Iran.

The development was reported after a phone conversation between the heads of the Iranian and Pakistani railway authorities, followed by official correspondence seeking activation of the Taftan railway crossing. The decision formally brings the rail terminal into Pakistan’s customs framework.

Under the FBR notification, the 11.75-hectare Taftan railway station has been authorised to manage loading and unloading, customs clearance, and the processing of imported and exported goods. The notification also sets out the geographical limits of the customs facility.

Trade and transport implications

Taftan is Pakistan’s main land crossing with Iran and has long been regarded as strategically important. However, the crossing had been operating below its potential because of infrastructure constraints and the absence of full customs arrangements.

The establishment of a customs station at the railway terminal is expected to make the movement of goods by rail easier, cut transportation expenses, speed up customs procedures and improve the management of cross-border trade. It is also expected to support a shift toward documented trade channels by improving documentation, inspection and clearance processes.

The initiative could also help reduce smuggling and informal trading routes by making formal trade procedures more organised and accessible for importers and exporters using the rail link.

Wider bilateral trade context

The decision comes as Pakistan and Iran have repeatedly expressed their intention in recent years to raise bilateral trade to $5 billion. Progress toward that target, however, has been slowed by banking restrictions, weak border infrastructure and logistical difficulties.

The notification is being seen as a step toward addressing one part of those constraints by creating an authorised customs setup at a key border rail point and enabling import and export operations through Taftan under a formal mechanism.