Govt to revise barter trade policy with Iran amid border truck crisis

In response to ongoing congestion at the Pakistan-Iran border, where 1,200 Iranian trucks remain stranded, the Ministry of Commerce has decided to present a revised summary to the federal cabinet. This proposal aims to waive the Import-Form (I-Form) requirement for imports from Iran and Afghanistan, while also revising the existing barter trade policy between Pakistan and Iran, Business Recorder reported. 

A joint meeting of the Senate Standing Committees on Commerce and on Finance and Revenue—the first of its kind—took place on Wednesday to address trade-related issues, particularly the ineffective barter trade mechanism with Iran.

Chairman of the Senate Finance Committee, Senator Saleem Mandviwalla, instructed the Commerce Ministry to ensure the new summary offers equal treatment to imports under both barter trade arrangements and the Import Policy Order.

The committees expressed concern over conflicting reports when the Acting Member Customs from the Federal Board of Revenue (FBR) informed them that Pakistani customs officials had no knowledge of 1,200 trucks being stuck, stating that these vehicles had not officially entered Pakistani territory and no customs clearance request had been received.

Commerce Ministry officials said the State Bank of Pakistan (SBP) had endorsed the draft summary for the cabinet; however, FBR comments remained pending. 

The committee directed the FBR to urgently submit its comments, leading to the FBR’s clarification that the exemption of the I-Form requirement falls within the jurisdiction of the Commerce Ministry and the SBP.

The joint committee agreed unanimously on drafting a revised barter trade policy within ten days. This draft policy will first undergo committee review before formal submission to the federal cabinet for approval.

Jointly chaired by Senators Saleem Mandviwalla and Anusha Rahman Ahmad Khan, the meeting criticized the absence of Commerce Minister and Commerce Secretary, terming their non-attendance a serious oversight. Mandviwalla also warned of initiating a privilege motion against the Collector of Customs Quetta for not complying with the committee’s directives to attend the session.

Senators Mandviwalla and Rahman strongly criticized bureaucratic inertia and policy confusion, stating these impediments have stalled legitimate trade and weakened Pakistan’s economic potential. Rahman cautioned that bureaucratic obstacles could prevent Pakistan from achieving its ambitious $60 billion trade target.

Iranian representatives, speaking to the committees, emphasized the seriousness of the issue, highlighting financial losses faced by traders due to 1,200 Iranian trucks remaining stranded at the border.