The Senate Standing Committee on Trade was informed that 600 trucks carrying trade goods have been stuck at the Iran border due to import documentation requirements. Chaired by Senator Anusha Rehman, the committee discussed the delays in barter trade with Iran and the challenges faced by traders.
According to media reports, Committee member Salim Mandviwala argued that barter trade does not involve payments, making the Electronic Import Form (EIF) unnecessary. However, Commerce Secretary Jawad Pal explained that the State Bank of Pakistan (SBP) had made EIF filing mandatory, insisting that traders declare their goods in the V-book to resolve the issue. Mandviwala disagreed, stating that trade agreements could not be rigid since barter transactions often involve exchanging different goods.
The Chairperson of the Committee noted that the statutory regulatory order (SRO) governing barter trade was not currently operational. She also highlighted that India and the UAE conduct barter trade with Iran using their banking channels, suggesting that Pakistan should explore a similar model.
Haji Faujan Khan, Chairman of the Dry Fruits Association, informed the committee that traders were reluctant to disclose their products and business partners, which had halted goods movement at the border. He urged the government to simplify regulations and allow barter trade without excessive documentation.
Commerce Ministry officials, however, clarified that only 10 specific items are allowed under the barter trade framework. Special Secretary Shakeel Ahmed Mangnejo stated that the SBP is unwilling to establish banking links with Iran due to international sanctions, adding that exporters had been informed of the procedures but had yet to comply.
To resolve the issue, the committee formed a working group comprising Commerce Ministry officials and traders involved in barter trade with Iran. The newly appointed Chief Executive Officer (CEO) of the Trade Development Authority was directed to meet with business representatives at the Chamber of Commerce to explain EIF filing procedures and address concerns.
In a written response, the Commerce Ministry stated that other countries such as the UAE, Hong Kong, China, and Singapore have established banking channels with Pakistan, as they are WTO members. Therefore, no exemption from EIF submission has been granted for non-Iranian-origin goods. However, a one-time waiver was allowed for Iranian goods transported by land, provided the Master Bill of Lading was issued before October 31, 2024.
The committee also decided to address concerns over officials from other ministries being posted to the Commerce Ministry on deputation, signaling a broader review of administrative policies.
