The closure of two key border crossings between Pakistan and Iran has halted liquefied petroleum gas (LPG) imports into Pakistan, resulting in supply shortages and increased prices, according to traders and industry representatives. The Gabd-Rimdan and Taftan crossings were closed on October 17, with differing explanations provided by the two countries.
The government of Balochistan, the Pakistani province where the crossings are located, stated that the closures were temporary measures aimed at addressing security concerns and curbing smuggling activities. Conversely, Iran's foreign ministry attributed the suspension to technical issues affecting the border points.
Pakistan relies heavily on LPG imports from Iran, with approximately 7,000 metric tonnes supplied daily. More than 4,000 tonnes enter through the Gabd-Rimdan crossing alone, according to Shamsul Haq, former president of the Gwadar Chamber of Commerce and Industry, who confirmed that these imports have now come to a halt. He also noted that over 1,000 Pakistani containers carrying perishable goods such as potatoes, bananas, and rice destined for Iran have been stranded at the border. While the Gabd-Rimdan crossing recently reopened to allow exports of perishable items, normal trade and LPG imports remain suspended.
The disruption has driven up domestic prices for LPG. The cost of a 12-kilogram cylinder reportedly increased from 4,500 Pakistani rupees (around $16) to 7,000 rupees ($25) within days, with the possibility of further rises if the closure continues. Prices vary regionally, with cylinders selling for approximately 7,000 rupees in Balochistan, 7,500 rupees in Lahore, and 8,200 rupees in Skardu. Industry representatives warn that the increase in LPG prices is contributing to inflation in other goods and services.
Hundreds of trucks, including LPG tankers, remain stranded on both sides of the border, leading to hardships for drivers. Abdul Ghani Baloch, one of the affected truck drivers, described waiting for more than a week under difficult conditions with limited access to basic amenities.
Trade between Pakistan and Iran totaled about $2.8 billion in the 2023-24 fiscal year, with Pakistani exports accounting for roughly $684 million, data from the Federation of Pakistan Chambers of Commerce and Industry show. The Quetta Chamber of Commerce and Industry has advised businesses to halt placing new orders with Iran until the situation improves.
The border closures come amid heightened regional tensions. During a recent visit to Tehran, Pakistan’s army chief discussed broader security issues, including border concerns, with Iranian officials. Iran’s foreign ministry has indicated that consultations are ongoing to resume trade and restore cross-border movement.
Consumers in Pakistan are increasingly apprehensive about potential worsening shortages and further price increases as winter approaches, when demand for heating fuel typically rises. The evolving situation underscores the vulnerability of Pakistan's energy supply chain to regional disruptions and highlights the importance of the Iran-Pakistan border crossings for bilateral trade.