Pakistan okays export of kinnows, potatoes through Iran

ISLAMABAD: Pakistan has allowed export of Kinnow and potatoes to Common Wealth of Independent States (CIS) through Iran land route, after the government grants one-time exemption from Financial Instruments (FIs).

According to the information shared with the National Assembly Standing Committee on Commerce, since December 5, 2025, exports of Kinnow and potatoes through land route began to SIC countries and 139 trucks of Kinnow and 32 trucks of potato have crossed Taftan till December 8, 2025 for onward journey.

Replying to a letter of Commerce Ministry, SBP said on December 5, 2025 Commerce Ministry/ Federal Government may consider granting a one-time exemption from the requirement of FIs for the export of Kinnow and potatoes through Iran to CIS countries subject to the following conditions: (i) the exemption shall be valid only for the current Kinnow and potato export season and will not be treated as a precedent;(ii) MoC may prescribe a mechanism to ensure effective controls for repatriation of export proceeds into Pakistan in compliance with Section 12(1), of Foreign Exchange Regulation Act, 1947; and (iii) MoC may ensure placement of adequate safeguards with respect to international sanctions for transactions through Iran.

Following SBP reply, Commerce Ministry’s Joint Secretary FT-II apprised the Member Customs (Operation), FBR that the Minister for Commerce has granted one –time exemption from Para 3 of the Export Policy Order 2022, allowing exemption from submission of Financial Instrument for exports of Kinnow (mandarin) and potatoes to CIS Member States via land route for current season. The mechanism for control of repatriation of export proceeds into Pakistan will be notified separately.

According to Commerce Ministry, a meeting of senior level was held in the Commerce Ministry on December 4, 2025 attended by the Secretary Commerce, Secretary National Food Security and Research, Deputy Governor SBP, Minister of State for Finance, Member Customs (Operations) FBR, Sargodha Chamber of Commerce and Industry (SCCI), All Pakistan fruits and Vegetables Merchants & Exporters Association (PFVA) and all other stakeholders.

Common Wealth of Independent States (CIS) includes Republic of Azerbaijan, Republic of Armenia, Republic of Belarus, Republic of Kazakhstan, Kyrgyz Republic, Republic of Moldova, Russian Federation and Republic of Tajikistan.

Copyright Business Recorder, 2025