exported 77,000 kg of rice to Iran earning a little over $67,000, according to the World Bank data.
As a way around this problem, Pakistani exporters could apply for an e-form with the bank, stating Dubai as the destination, which was later changed to Bander Abbas at the backend. Then a copy would be sent to the importer in Iran. This way, rice cargo was shipped directly to Iran. Meanwhile, India was able to sell rice and other food items to Iran in exchange for crude oil imports, with local-currency payments made through Indian bank accounts, bypassing international banking channels. The arrangement hit a snag when Trump effectively ended sanctions waivers on Iran's oil imports in May 2019.
Basmati rice importers have been particularly hit by this move as they now have to procure dollars at expensive rates from the open market. As a result, Pakistani and Indian exporters have now suspended all trade until all outstanding dues are cleared. This has caused Basmati paddy prices to fall in both India and Pakistan, while food prices in Iran, including that of Basmati rice, are skyrocketing.Pakistani rice exporters are hopeful that the projected Joe Biden administration in the US will ease sanctions on Iran, making it easier for them to conduct trade with the country. to return to the nuclear deal if Iran shows compliance towards reducing its nuclear stockpiles.