Pakistan to kick off barter trade with Iran, Russia and Afghanistan

KARACHI: (HRNW) The federal government on Friday notified a ‘Business-to-Business (B2B) Barter Trade Mechanism’ for trade with Iran, Afghanistan, and Russia.

In this connection, a notification was also issued by the Ministry of Commerce, allowing state-owned enterprises and private sector entities to engage both in the import and export of goods.

The development comes two months after the federal Cabinet approved a policy to promote barter trade for increasing Pakistan’s regional trade.

“Application for authorization of import and export of goods under the B2B barter trade facility shall be submitted online by the trader or their authorized agent through the online system to the regulatory collector,” the notification said.

The trade of goods under a B2B Barter Trade arrangement will be allowed on the principle of “import followed by export” and export would meet the value of imported goods.

The ministry has identified some 26 goods that can be exported to Afghanistan, Iran and Russia including milk, cream, eggs and cereal, meat and fish products, fruits and vegetables, rice, salt, pharmaceutical products, finished leather and leather apparel, footwear, steel, and sports goods.

The government has notified the products to be imported from Afghanistan, which include fruits and nuts, vegetables and pulses, spices, minerals and metals, coal and its products, raw rubber items, raw hides and skins, cotton, and iron and steel.

From Iran, Pakistani importers are allowed to import fruits, nuts, vegetables, spices, minerals and metals, coal and related products, petroleum crude oil, LNG and LPG, chemical products, fertilizers, article of plastics and rubber, raw hides and skins, raw wool and articles of iron and steel.

From Russia, Pakistani traders will be allowed to import pulses, wheat, coal and related products, petroleum oils including crude, LNG and LPG, fertilizers, tanning and dying extracts, articles of plastic and rubber, minerals and metals, chemicals products, articles of iron and steel, and items of textile industrial machinery.