TEHRAN: Pakistan’s Federal Board of Revenue (FBR) has formally designated the Taftan border railway station as a land customs facility for import and export procedures, a move expected to facilitate rail freight, reduce transportation costs and boost formal trade between Iran and Pakistan, Iranian news agency IRNA reported..

According to the Islamic Republic of Iran on Saturday, the decision came after a phone conversation between the heads of Iranian and Pakistani railways, followed by official correspondence calling for the activation of Taftan railway crossing.

Under the FBR notification, the 11.75-hectare Taftan railway station has been authorised to handle loading, unloading, customs clearance and processing of imported and exported goods. The geographical boundaries of the customs facility have also been defined, officially integrating the Taftan rail terminal into Pakistan’s customs network.

Taftan is Pakistan’s main land crossing with Iran and has long held strategic importance but has operated below its full capacity due to infrastructure limitations and the lack of comprehensive customs facilities.

Experts believe the establishment of a railway customs station will facilitate the movement of goods by rail, reduce transportation costs, speed up customs clearance and improve the organisation of cross-border trade.

The initiative is also expected to help curb smuggling and informal trade routes by streamlining documentation, inspection and customs clearance procedures while encouraging the use of formal trade channels.

The decision comes as Iran and Pakistan have repeatedly pledged in recent years to increase bilateral trade to five billion dollars, although banking restrictions, inadequate border infrastructure and logistical challenges have slowed progress toward that goal.

Source: The NEWS Pakistan, International