Pakistan has relaxed its Barter Trade rules with Iran, Russia, and Afghanistan to make cross-border commerce smoother and more business-friendly. The move aims to resolve long-standing complaints from traders and investors about complex procedures and limited flexibility.
The Ministry of Commerce issued a new notification under the Business-to-Business (B2B) Barter Trade Framework. The updated policy allows businesses to conduct imports and exports at the same time, instead of exporting first. This change is expected to boost trade activity and reduce unnecessary delays.
Under the revised framework, private companies can now form consortia to carry out Barter Trade transactions. The time limit for completing deals has also been extended from 90 to 120 days, giving traders more breathing room to finalize agreements.
Another major reform includes the removal of the fixed list of tradable goods. The policy now aligns with Pakistan’s general export and import regulations, offering more freedom to businesses in choosing the products they wish to trade.
Pakistan’s Ambassador to Iran, Muhammad Mudassir Tipu, welcomed the new measures. He described them as a major step toward expanding trade between Pakistan and Iran. He also encouraged the business community to take advantage of the new opportunities made possible by the revised policy.
The Barter Trade system was first launched in June 2023 to support trade with countries affected by sanctions or dollar shortages. However, it soon faced several challenges, including limited product categories, strict verification rules, and short timelines that discouraged participation.
After consulting with the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Ministry of Foreign Affairs, and Pakistan Single Window (PSW), the government finalized an amended version of the policy. The Economic Coordination Committee (ECC) approved the new framework earlier this month.
In other related news also read Pakistan Weighs Plan to Open Badini Border for Afghan Trade
Experts believe the reforms will help revive trade with Iran and Russia, particularly in key sectors such as energy, agriculture, minerals, and raw materials.
