Pakistan has implemented a revised business-to-business (B2B) barter trade mechanism with Iran, Russia, and Afghanistan after introducing key amendments to make bilateral trade more practical and business-friendly.
According to a notification issued by the Ministry of Commerce, several conditions governing barter trade have been eased. The earlier requirement for exporters to complete exports before initiating imports has been removed, allowing simultaneous import and export transactions. Private companies have also been permitted to form consortia to facilitate trade, while the time limit for completing barter transactions has been extended from 90 to 120 days.
The ministry has also abolished the restrictive list of specific tradable items and aligned the updated framework with Pakistan’s general export and import policy orders to ensure coherence in implementation.
Pakistan’s Ambassador to Iran, Muhammad Mudassir Tipu, confirmed the development on X (formerly Twitter), saying, “I am delighted to share that Pakistan has issued a new SRO aimed at promoting barter trade between Pakistan and Iran.” He said that after extensive consultations, the concerns of businesses from both countries had been addressed.
“We hope it will substantially elevate Pakistan-Iran trade and diversify its base. I urge industry and business community of both countries to take full benefit from the new SRO,” Tipu added.
The new rules are designed to remove operational hurdles that had slowed the earlier mechanism introduced in June 2023. Businesses had complained about restrictions on tradable goods, mandatory export-before-import conditions, contract verification requirements by Pakistani missions abroad, and the short 90-day transaction window.
To address these issues, the Ministry of Commerce held consultations with the State Bank of Pakistan (SBP), the Ministry of Foreign Affairs, the Federal Board of Revenue (FBR), and Pakistan Single Window (PSW), alongside private stakeholders.
The Economic Coordination Committee (ECC) of the federal cabinet approved the amendments earlier this month, clearing the way for the revised barter trade framework to take effect.
