ISLAMABAD: Pakistan has introduced a revised barter trade framework with Afghanistan, Iran and Russia, easing several regulations to facilitate smoother business transactions.
The Ministry of Commerce has issued a notification detailing amendments to the business-to-business barter trade mechanism with these countries.
The updated framework relaxes the previously mandatory “import before export” requirement, allowing simultaneous import and export. Private companies are now permitted to form consortia, and the duration for barter trade transactions has been extended from 90 to 120 days.
Additionally, the restricted list of eligible goods has been removed, aligning barter trade with general export and import policy orders. Sources indicate that these changes aim to make the system more practical and business-friendly.
Pakistan initially implemented the barter trade mechanism with Afghanistan, Iran, and Russia in June 2023. However, businesses faced challenges with implementation, including restrictions on approved and non-approved goods, and a narrow list of items eligible for trade.
Sources also highlighted difficulties in contract verification by Pakistani missions abroad and complications arising from the “import before export” requirement. Moreover, the previous 90-day deadline for customs clearance slowed trade and created hurdles for businesses.
To address these challenges, the Ministry of Commerce consulted extensively with public and private stakeholders, including the State Bank of Pakistan, Ministry of Foreign Affairs, Federal Board of Revenue (FBR), and Pakistan Single Window.
The revised framework is expected to streamline barter trade, enhance trade efficiency, and provide a more business-friendly environment for exporters and importers.
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