Karachi: In a major development for Pakistan’s agricultural export sector, the government has removed the key financial obstacle that had long hindered the export of kinnow (mandarin) and potatoes via the Iran land route. Acting on the special directives of the Prime Minister, the Ministry of Commerce and the State Bank of Pakistan (SBP) have jointly issued an important circular granting exporters one-time exemption from submitting the mandatory Financial Instrument (FI) for these shipments.
According to the official notification signed by Maria Kazi, JS FT-II, exporters will now be able to ship kinnow and potatoes to Central Asian States (CIS) and Russia through Iran’s land corridor without the previously required banking documentation.
Commerce Ministry Circular: A Landmark Facilitation for Exporters:
The circular states:
Exporters of kinnow and potatoes are exempted from submitting the Financial Instrument in banks for the ongoing export season.
This relaxation has been granted under the Export Policy Order 2022 as a one-time special permission.
The State Bank of Pakistan has instructed all banks not to demand FI-Documents from exporters.
The move addresses long-standing logistical challenges and provides an immediate relief to exporters who faced disruptions through the Afghan transit route. The Iran land route is now formally reinstated as a viable and streamlined export corridor.
Pakistan’s Export Performance, And Growth Expected This Year:
Export data reveals:
Pakistan exported 55,000 tons of kinnow, earning USD 22 million last year. The country also exported 300,000 tons of potatoes to CIS markets, earning USD 50 million.
Exporters are highly optimistic about 2025:
A bumper kinnow crop has been recorded this season. Shipments to CIS countries are expected to increase by 30% compared to last year.
The opening of the Iran corridor is expected to significantly reduce transportation costs, shorten transit time, and enable exporters to serve regional markets more efficiently.
PFVA Welcomes the Government’s Decision “A Unique Opportunity for the Sector”
Waheed Ahmed, Patron-in-Chief of the All Pakistan Fruit & Vegetable Exporters, Importers and Merchants Association (PFVA), expressed deep appreciation for the government’s timely intervention. He stated:
“We express our deepest gratitude to the Honourable Prime Minister, Minister of Commerce, and Governor SBP for resolving the Financial Instrument issue expeditiously for the export of kinnow to CIS countries via Iran. This reflects their strong commitment to boosting this vital export sector.”
He added:
“Our exporters will leave no stone unturned in utilizing this unique opportunity. With a bumper kinnow crop this year, we are fully prepared to maximize exports and generate valuable foreign exchange for Pakistan.”
A Game-Changer for Pakistan’s Agricultural Supply Chain
This development carries important implications for:
Exporters targeting CIS & Russian markets
Logistics and cold-chain operators using Iran’s land routes
Pakistan’s kinnow and potato export clusters
Investors looking to expand in the fresh produce sector
By relaxing banking requirements and enabling smoother transit routes, the government has unlocked new momentum for Pakistan’s fruit and vegetable export industry.
The government’s decision is being hailed as a strategic breakthrough for Pakistan’s agricultural exports. With improved cross-border logistics, reduced documentation barriers, and a bumper harvest season, Pakistan is positioned to significantly enhance its footprint across Central Asia and Russia.
This policy shift is expected to:
Boost foreign exchange earnings
Strengthen Pakistan’s trade competitiveness
Improve sustainable market access for key horticultural products
Pakistan’s kinnow and potato exporters are ready, and the regional markets are waiting.
The State Bank of Pakistan has instructed all banks not to demand FI-Documents from exporters.
The move addresses long-standing logistical challenges and provides an immediate relief to exporters who faced disruptions through the Afghan transit route. The Iran land route is now formally reinstated as a viable and streamlined export corridor.
Pakistan’s Export Performance, And Growth Expected This Year:
Export data reveals:
Pakistan exported 55,000 tons of kinnow, earning USD 22 million last year. The country also exported 300,000 tons of potatoes to CIS markets, earning USD 50 million.
Exporters are highly optimistic about 2025:
A bumper kinnow crop has been recorded this season. Shipments to CIS countries are expected to increase by 30% compared to last year.
The opening of the Iran corridor is expected to significantly reduce transportation costs, shorten transit time, and enable exporters to serve regional markets more efficiently.
PFVA Welcomes the Government’s Decision “A Unique Opportunity for the Sector”
Waheed Ahmed, Patron-in-Chief of the All Pakistan Fruit & Vegetable Exporters, Importers and Merchants Association (PFVA), expressed deep appreciation for the government’s timely intervention. He stated:
“We express our deepest gratitude to the Honourable Prime Minister, Minister of Commerce, and Governor SBP for resolving the Financial Instrument issue expeditiously for the export of kinnow to CIS countries via Iran. This reflects their strong commitment to boosting this vital export sector.”
He added:
“Our exporters will leave no stone unturned in utilizing this unique opportunity. With a bumper kinnow crop this year, we are fully prepared to maximize exports and generate valuable foreign exchange for Pakistan.”
A Game-Changer for Pakistan’s Agricultural Supply Chain
This development carries important implications for:
Exporters targeting CIS & Russian markets
Logistics and cold-chain operators using Iran’s land routes
Pakistan’s kinnow and potato export clusters
Investors looking to expand in the fresh produce sector
By relaxing banking requirements and enabling smoother transit routes, the government has unlocked new momentum for Pakistan’s fruit and vegetable export industry.
The government’s decision is being hailed as a strategic breakthrough for Pakistan’s agricultural exports. With improved cross-border logistics, reduced documentation barriers, and a bumper harvest season, Pakistan is positioned to significantly enhance its footprint across Central Asia and Russia.
This policy shift is expected to:
Boost foreign exchange earnings
Strengthen Pakistan’s trade competitiveness
Improve sustainable market access for key horticultural products
Pakistan’s kinnow and potato exporters are ready, and the regional markets are waiting.
