Pakistan has allowed the export of kinnow and potatoes to the Commonwealth of Independent States through the Iran land route, following the approval of a one-time exemption from the requirement to submit financial instruments. The decision applies to the current export season only and is not intended to set a precedent.
The Commonwealth of Independent States includes Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, and Tajikistan. According to information shared with the National Assembly's Standing Committee on Commerce, exports via the land route began on December 5, 2025. Between December 5 and December 8, 139 trucks carrying kinnow and 32 trucks carrying potatoes crossed the Taftan border for onward shipment to CIS destinations.
The State Bank of Pakistan advised the Ministry of Commerce on December 5 that the federal government may consider granting a one-time exemption from the requirement of financial instruments for exports of kinnow and potatoes to CIS countries through Iran, subject to specific conditions. The central bank said the exemption would apply only to the current season and should not be treated as a precedent for future trade arrangements.
The State Bank of Pakistan also advised the Ministry of Commerce to put in place a mechanism to ensure the repatriation of export proceeds into Pakistan in accordance with Section 12(1) of the Foreign Exchange Regulation Act, 1947. In addition, it called for safeguards related to international sanctions compliance for transactions routed through Iran.
Under the exemption, exporters are permitted to ship kinnow and potatoes to CIS member states through the land route without submitting financial instruments for the current export season. The Ministry of Commerce said a separate notification will outline the mechanism for monitoring the repatriation of export proceeds.
A senior-level meeting was held on December 4, 2025, to review the matter. The meeting was attended by the Secretary of Commerce, the Secretary of National Food Security and Research, the deputy governor of the State Bank of Pakistan, the minister of state for finance, the member of customs operations of the Federal Board of Revenue, representatives of the Sargodha Chamber of Commerce and Industry, the Pakistan Fruits and Vegetables Exporters Association, and other stakeholders.
The decision is intended to facilitate seasonal exports of kinnow and potatoes to CIS markets via the Iran land route while maintaining oversight of payment flows and regulatory compliance.
Source: Profit
