Islamabad, 2 June 2023 (TDI): Pakistan officially established a “Business-to-Business (B2B) Barter Trade Mechanism” for trading goods with Russia, Iran, and Afghanistan. This system enables import and export activity in Pakistan for state-owned and private-sector organizations.
According to the Ministry of Commerce, importers and exporters on the Federal Board of Revenue’s active taxpayers’ list who have subscribed to the Pakistan Single Window (FEW) System will be eligible for barter trade.
Under the B2B Barter exchange arrangement, the exchange of goods will follow the principle of “import followed by export,” ensuring that the value of the exports equals the value of the imported items.
The Government of Pakistan has designated 26 commodities to be exported to Afghanistan, Iran, and Russia. These products include dairy, meat and fish, fruits and vegetables, rice, pharmaceuticals, leather clothing, footwear, steel, and sporting goods.
Pakistan has permitted the importation of fruits, nuts, vegetables, spices, minerals and metals, coal and allied products, and other items from Afghanistan.
Pakistani importers can bring various goods from Iran, including fruits, nuts, vegetables, spices, minerals and metals, petroleum crude oil, LNG and LPG, chemicals, fertilizers, plastics and rubber products, and more.
Pakistani traders could import pulses, wheat, coal and allied products, petroleum oils, LNG and LPG, fertilizers, chemicals, textile machinery, and other items from Russia.
The Ministry of Commerce expressed delight in adopting the barter trade system, claiming it would stabilize Pakistan’s economy and raise foreign reserves.
A paradigm shift in Pakistan’s commercial dynamics has occurred with the decision to boost B2B barter trade. With a reduced dependence on the US dollar, Pakistan hopes to deepen its economic links with its neighbors and take advantage of the enormous potential for bilateral commerce.
Implementing this measure is expected to reduce the constraints created by existing trading systems, offer new opportunities, and promote long-term economic progress.