ECC approves SRO to amend B2B Barter Trade Mechanism with Iran, Afghanistan, Russia

The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a draft Statutory Regulatory Order (SRO) as proposed by the Ministry of Commerce, aimed at amending the business-to-business (B2B) barter trade mechanism governing bilateral trade with Afghanistan, Iran and Russia.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the ECC meeting and approved key supplementary grants and trade facilitation measures, said a press release issued by the Ministry of Finance.

The B2B barter trade mechanism, governing trade with Afghanistan, Iran, and Russia, was introduced in June 2023. The amendment aims to simplify implementation by allowing private entities to form consortia, replacing certification by Pakistan’s missions abroad with local undertakings, and permitting simultaneous import and export rather than the previous sequential requirement. 

The revisions also align the list of tradable products with the general Export and Import Policy Orders to facilitate smoother trade.

In June 2023, the Ministry of Commerce introduced the Business-to-Business (B2B) Barter Trade Mechanism to facilitate trade between Pakistan, Afghanistan, Iran, and Russia. 

The framework allows Pakistan to export a wide range of goods, including meat, fruits, vegetables, rice, and textile products, highlighting the quality and variety of domestic produce to regional markets.

The agreement also enables Pakistan to export sports equipment to Iran and Afghanistan, supporting the growth of the national sports industry and fostering regional sporting collaborations.

In return, Pakistan can import essential commodities such as crude oil, LNG, and LPG to meet energy requirements, as well as chemical products, fertilisers, fruits, vegetables, and spices from Iran. From Russia, imports include crude oil, LNG, LPG, wheat, pulses, and industrial machinery, supporting both industrial and agricultural needs.

The Ministry of Commerce’s Special Regulatory Order (SRO) further included minerals, metals, coal, pulses, oil seeds, and fruits and vegetables from Afghanistan, supplementing domestic supply and promoting regional trade cooperation.