Pak-Iran barter trade

A fresh notification could mean trade volumes increase by as much as $4 billion

In the most basic explanations of human civilization provided in social studies textbooks, humankind evolved from an economic system that was based on barter trade all the way to the high-rolling and often confusing world of capital markets today. However, barter trade still has its place in the world today. On the one hand, it exists in more sophisticated forms, such as in the advertising industry, where one company sells its available ad space to another company in exchange for the right to advertise on the second company’s space.

However, barter trade also exists in some of its archaic form in the world today. Just recently, the Ministry of Trade issued a notification on 7th April to lay down the procedure for barter trade between Iran and Pakistan. Officials believe that this move will increase the bilateral trade from the existing level of $1 billion to $5 billion. 

A preferential trade agreement was signed between the two countries back in 2006 but it failed to increase bilateral trade as the US heavily sanctioned the Iranian economy.

 

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Ahtasam Ahmad
Ahtasam Ahmad
The author works as an Editorial Consultant at Profit and can be reached at [email protected]

2 COMMENTS

  1. is it easy/convenient to do trade with iran? what are the issues and how to deal with them? kindly help me about it. thank you

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