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Trade Facilitation Network

TFN Detailed Commentary | SRO 691 (Transit of Goods through Pakistan Order, 2026)

SRO 691 is a concise but important notification. Its strength lies in its simplicity — but that also requires careful interpretation.

Below is a refined clause-by-clause breakdown.

1. Short Title & Commencement

The Order is titled:

“Transit of Goods through territory of Pakistan Order, 2026”»

• Immediate enforcement
• No phased rollout

TFN View:

This signals urgency and intent to operationalize transit without delay.

2. Definitions

The SRO defines key terms:

(i) Cross Stuffing

Transfer of goods between containers or modes under customs rules

👉 Practical meaning:

Allows flexibility at ports or en-route if required.

(ii) Customs Security

Financial guarantee equivalent to duties/taxes

👉 Practical meaning (ground reality):

• Transit cargo must be financially secured — however, in practice this may evolve into:

• TIR guarantee (international system)

• Bonded carrier guarantee (domestic system)

• AND potentially additional/custom guarantees imposed by Customs

TFN Critical Observation:

«There is a real risk that this mirrors the Afghan Transit model,
where multiple layers of guarantees are required — even when TIR is used.»

If that happens:

  • TIR loses its efficiency advantage
  • Cost of transit increases significantly
  • Operational simplicity is compromised

👉 This is a key area to watch in implementation.

(iii) Shipper

Any party contracting carriage

👉 Standard definition — aligns with international practice

(iv) Transit

Movement across Pakistan where origin and destination are outside Pakistan

👉 Critical point:

Confirms non-import status of cargo

(v) Transit Transport Corridor

Defined route for transit

👉 Legal basis for route enforcement

3. Scope of the Order

«Applies to goods from a third country, destined for Iran, via Pakistan»

• Direction is clearly defined
• Port-based transit is implied

TFN Interpretation:

This enables:

«Cargo arriving at Karachi/Gwadar → moving inland → exiting into Iran»

4. Designation of Transit Transport Corridors

The SRO lists multiple routes, effectively forming two main corridors:

A. Karachi → Taftan Corridor (Inland Route)

Via:

• Hub
• Khuzdar
• Quetta
• Dalbandin
• Taftan

✓ Established corridor
✓ Connects to Zahedan

B. Gwadar / Karachi → Gabd (Rimdan) Corridor (Coastal Route)

Via:

• Gwadar
• Turbat
• Gabd

✓ Emerging corridor
✓ Connects to Chabahar region

5. Customs Procedures

«Governed under Customs Act 1969 and FBR procedures»

👉 No new system introduced

Operational implication:

• Processing through Pakistan Single Window (PSW)

• Movement under:

• TIR

OR bonded carriers

TFN Consolidated Interpretation

SRO 691 is:

✓ A route notification order
✓ A legal facilitation instrument
✓ A port-to-border transit enablement

Key Implementation Risk

«If multiple guarantees are imposed (as seen in Afghan Transit),

the corridor will face cost and efficiency barriers from day one.»

🔑 Final TFN Position

«Clarity exists in policy»

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