Pakistan approves barter trade mechanism with Afghanistan, Iran, Russia

Pakistan approves barter trade mechanism with Afghanistan, Iran, Russia

By Staff Reporter

ISLAMABAD: Pakistan has approved a barter trade mechanism with Afghanistan, Iran and Russia to boost trade and help the country’s struggling economy, the commerce ministry said on Friday.

The government order, called the Business-to-business (B2B) Barter Trade Mechanism 2023 and dated June 1, lists goods that can be bartered.

State and privately-owned entities would need approval to participate in the trade mechanism.
Importers and exporters on the Federal Board of Revenue’s active taxpayers list and subscribed to the Pakistan Single Window (FEW) System would be eligible for barter trade.

“Application for authorisation of import and export of goods under the B2B barter trade facility shall be submitted online by the trader or their authorised agent through the online system to the regulatory collector,” the government notification said.

The trade of goods under a B2B Barter Trade arrangement will be allowed on the principle of “import followed by export” and export would meet the value of imported goods.

Pakistan has identified some 26 goods that can be exported to Afghanistan, Iran, and Russia, including milk, cream, eggs and cereal, meat and fish products, fruits and vegetables, rice, salt, pharmaceutical products, finished leather and leather apparel, footwear, steel, and sports goods.

The government has notified the products to be imported from Afghanistan, which include fruits and nuts, vegetables and pulses, spices, minerals and metals, coal and its products, raw rubber items, raw hides and skins, cotton, and iron and steel.

From Iran, Pakistani importers are allowed to import fruits, nuts, vegetables, spices, minerals and metals, coal and related products, petroleum crude oil, LNG and LPG, chemical products, fertilizers, articles of plastics and rubber, raw hides and skins, raw wool and articles of iron and steel.

From Russia, Pakistani traders will be allowed to import pulses, wheat, coal and related products, petroleum oils including crude oil, LNG and LPG, fertilizers, tanning and dying extracts, articles of plastic and rubber, minerals and metals, chemicals products, articles of iron and steel, items of textile industrial machinery.

The commerce ministry said its top officials held several meetings with high-level delegations of various countries to make the barter trade system possible.

“It is an ideal step taken by the current administration to stabilise the country’s economy as it will not only increase foreign reserves of the country but also increase the quantum of trade.”

Trade officials said Pakistan could gain particularly from oil and energy imports from Russia and Iran without adding to dollar demand.

“While it may not solve currency smuggling, particularly at the Afghanistan border, it can discourage smuggling of goods from Iran, such as diesel, and Afghanistan which is hurting the economy,” an official said.

Copyright © 2021 Independent Pakistan | All rights reserved

Related

Pakistan approves barter trade mechanism with Afghanistan, Iran, Russia

By Staff Reporter

ISLAMABAD: Pakistan has approved a barter trade mechanism with Afghanistan, Iran and Russia to boost trade and help the country’s struggling economy, the commerce ministry said on Friday.

The government order, called the Business-to-business (B2B) Barter Trade Mechanism 2023 and dated June 1, lists goods that can be bartered.

State and privately-owned entities would need approval to participate in the trade mechanism.
Importers and exporters on the Federal Board of Revenue’s active taxpayers list and subscribed to the Pakistan Single Window (FEW) System would be eligible for barter trade.

“Application for authorisation of import and export of goods under the B2B barter trade facility shall be submitted online by the trader or their authorised agent through the online system to the regulatory collector,” the government notification said.

The trade of goods under a B2B Barter Trade arrangement will be allowed on the principle of “import followed by export” and export would meet the value of imported goods.

Pakistan has identified some 26 goods that can be exported to Afghanistan, Iran, and Russia, including milk, cream, eggs and cereal, meat and fish products, fruits and vegetables, rice, salt, pharmaceutical products, finished leather and leather apparel, footwear, steel, and sports goods.

The government has notified the products to be imported from Afghanistan, which include fruits and nuts, vegetables and pulses, spices, minerals and metals, coal and its products, raw rubber items, raw hides and skins, cotton, and iron and steel.

From Iran, Pakistani importers are allowed to import fruits, nuts, vegetables, spices, minerals and metals, coal and related products, petroleum crude oil, LNG and LPG, chemical products, fertilizers, articles of plastics and rubber, raw hides and skins, raw wool and articles of iron and steel.

From Russia, Pakistani traders will be allowed to import pulses, wheat, coal and related products, petroleum oils including crude oil, LNG and LPG, fertilizers, tanning and dying extracts, articles of plastic and rubber, minerals and metals, chemicals products, articles of iron and steel, items of textile industrial machinery.

The commerce ministry said its top officials held several meetings with high-level delegations of various countries to make the barter trade system possible.

“It is an ideal step taken by the current administration to stabilise the country’s economy as it will not only increase foreign reserves of the country but also increase the quantum of trade.”

Trade officials said Pakistan could gain particularly from oil and energy imports from Russia and Iran without adding to dollar demand.

“While it may not solve currency smuggling, particularly at the Afghanistan border, it can discourage smuggling of goods from Iran, such as diesel, and Afghanistan which is hurting the economy,” an official said.

Copyright © 2021 Independent Pakistan | All rights reserved