Pakistan has introduced a revised and more flexible barter trade framework with Afghanistan, Iran, and Russia, aimed at removing earlier bottlenecks and facilitating smoother regional trade.
According to a notification issued by the Ministry of Commerce, several amendments have been made to the Business-to-Business (B2B) Barter Trade Mechanism, making it more practical and business-friendly.
Under the new framework, the condition of mandatory import before export has been relaxed, allowing simultaneous import and export between the participating countries. Additionally, private entities have been permitted to form consortia to streamline trade operations.
The duration for completing barter transactions has also been extended from 90 days to 120 days, while the previously restricted list of specific items eligible for barter trade has been abolished. The system has now been aligned with the General Export and Import Policy Orders, the notification stated.
Official sources said these changes were made after extensive consultations with the State Bank of Pakistan, Ministry of Foreign Affairs, Federal Board of Revenue (FBR), and Pakistan Single Window, along with key representatives from the private sector.
The move comes after Pakistan first implemented the barter trade mechanism in June 2023, which, despite its potential, faced several practical challenges. Business groups and stakeholders had raised concerns over strict product restrictions, contract verification requirements, and the 90-day settlement limit, which had slowed down trade activity.
By addressing these hurdles, the Ministry of Commerce aims to revive and strengthen regional trade through a simplified and efficient barter system, reducing dependence on foreign exchange and expanding commercial ties with neighboring countries.