Pakistan has reassessed its barter trade mechanism with Iran, Russia, and Afghanistan to make cross-border commerce simpler and more flexible for businesses, addressing long-standing complaints from traders and investors.
The Ministry of Commerce issued a notification easing several restrictive conditions under the Business-to-Business (B2B) Barter Trade Framework.
The new policy allows simultaneous imports and exports instead of requiring exports before imports which is a shift to boost trade volume and reduce procedural delays.
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Private companies may now form consortia to conduct barter transactions, while the completion window has been extended from 90 to 120 days.
The ministry has also abolished the fixed list of tradable items, aligning the framework with Pakistan’s general export and import policy orders.
Pakistan’s Ambassador to Iran, Muhammad Mudassir Tipu, welcomed the reform, calling it a “major step toward expanding Pakistan-Iran trade.”
In a social media post, he said the changes addressed the key concerns of traders in both countries and urged the business community to make full use of the new policy.
The barter trade mechanism was first launched in June 2023, aiming to promote trade with countries where financial transactions were hindered by sanctions or dollar shortages.
However, it faced major operational hurdles, including a narrow list of allowed goods, cumbersome verification requirements, and time limits that made cross-border deals unfeasible for many businesses.
After consultations with the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Ministry of Foreign Affairs, and the Pakistan Single Window (PSW), the government prepared an amended draft that was approved by the Economic Coordination Committee (ECC) earlier this month.
The new measures are expected to revive interest in trade with Iran and Russia, especially in sectors such as energy, agriculture, minerals, and industrial raw materials.