A significant development happened today in terms of Pakistan’s trade relations. Making substantial progress in trade alliances with Iran and Syria, the government of Pakistan has announced the implementation of barter trade agreements.
The Ministry of Commerce has introduced Business to Business (B2B) Barter Trade Mechanism 2023. This will enable Pakistan to engage in mutually beneficial exchanges with these countries.
Under the new rules, Pakistan will be able to export a wide range of goods to Afghanistan, Iran, and Russia.
Pakistan’s agricultural sector will largely benefit from this. With the export of meat, fruits, vegetables, and rice to these countries, Pakistan will be able to demonstrate the quality and variety of its produce to the international market.
Additionally, Pakistan’s textile industry will gain a competitive edge by exporting textile products. Pakistan will also import other items such as perfumes, cosmetics, surgical instruments, and cutlery to these lucrative markets.
Furthermore, Pakistan will export sports equipment to Iran and Afghanistan as a result of this agreement. The ability to export this will facilitate the growth of the national sports equipment industry at large. It will also strengthen sports-related trade ties and foster sporting collaborations among the countries.
In return, Pakistan will import essential commodities from Iran, Russia and Afghanistan, including crude oil, LNG, and LPG- fulfilling its energy requirements. This strategic barter system will not only ensure a steady supply of energy resources but also contribute to reducing the country’s dependence on traditional trading methods.
Pakistan can also import other items from Iran such as chemical products, fertilisers, fruits, vegetables, and spices. This will broaden the country’s market access.
Russia’s inclusion in the barter trade framework opens up more opportunities for Pakistan. The country will import crude oil, LNG, LPG, wheat, pulses, and industrial machinery from Russia. This diversified import spectrum will support Pakistan’s industrial growth, meet agricultural demands, and enhance the overall economic landscape.
The Ministry of Commerce’s Special Revenue Order (SRO) also highlighted the inclusion of minerals, metals, coal, fruits, vegetables, pulses, and oil seeds in the barter system with Afghanistan. These imports will supplement Pakistan’s domestic requirements and foster regional trade cooperation.
It is pertinent to mention that this breakthrough in barter trade regulations among Pakistan, Iran, Afghanistan and Russia marks a significant milestone in economic cooperation. It is expected to boost bilateral relations, strengthen trade ties, and create new opportunities for growth in multiple sectors. The move aligns with Pakistan’s vision for enhanced regional connectivity and economic development, signalling a promising future for trade between these nations.