ISLAMABAD – Pakistan has introduced significant amendments to its barter trade framework for three key regional players—Iran, Afghanistan, and Russia—in a decisive move to address severe difficulties that had previously stalled the mechanism.
The Ministry of Commerce has issued a notification relaxing several conditions that had rendered the previous framework, implemented in June 2023, impractical and slow.
Business groups and stakeholders had consistently highlighted the hurdles that created significant operational difficulties. The most critical barrier was the mandatory condition of “import before export,” which created major liquidity and logistical problems for the business community. Furthermore, a short 90-day transaction settlement period and a highly restrictive list of eligible goods severely hampered the mechanism’s potential.
Under the new notification, the government has directly addressed these problems:
- The mandatory import-first condition has been relaxed, now permitting simultaneous import and export.
- The transaction period for barter trade has been extended from 90 to 120 days, giving traders more breathing room.
- The specific list of goods has been abolished entirely and is now aligned with the country’s general import and export policy orders.
- Private entities are now also authorized to form consortiums to conduct trade.
According to sources, these measures are intended to make the barter trade mechanism more practical and business-friendly. The amendments were finalized after extensive consultations with public and private stakeholders, including the State Bank, FBR, and the Ministry of Foreign Affairs.
