LAHORE – Pakistan has allowed barter trade of selected items with Russia, Iran, and Afghanistan in a bid to ease burden on fast depleting foreign exchange reserves.
Pakistan is facing a balance of payment crisis, fast depleting foreign exchange reserves and alarmingly low foreign direct investment due to global recession and political unrest.
According to a notification issued by the Ministry of Commerce, the Business-to-Business Barter Trade Mechanism, 2023 will allow state owned and private enterprises fulfilling certain criterion to export and import goods from these countries.
The mechanism will allow trade of goods on the principle of import followed by export. The export will be made to the extent of the value of imported goods.
BREAKING 🚨 Ministry of Commerce Pakistan has issued an SRO for B2B Barter Trade with Iran, Afghanistan & Russia! This is real change & real relief for the people of Pakistan. 1/2 pic.twitter.com/Ov04rJFWEk
— Raza Hassan (@RazaSHassan) June 1, 2023
Pakistan Prime Minister Shehbaz Sharif and Iranian President Ebrahim Raisi have recently inaugurated barter trade market on the Pak-Iran border.
The B2B mechanism has allowed eligible enterprises to export milk, fruits, nuts, and vegetables, rice, confectionary and bakery items, salt, pharmaceutical products, leather, textiles, electrical equipment, and sports goods to Russia, Afghanistan and Iran. Petroleum products, pulses, wheat, iron, and steel can be imported from Russia.
Coal, crude oil, gas, fruits, nuts, and vegetables can be imported from neighboring Iran.
Eligible companies can import fruits and nuts, vegetables, oil seeds, minerals, and metals from Afghanistan.
