Pakistan issues to allow barter trade with Iran, Afghanistan, and Russia.

Pakistan issues to allow barter trade with Iran, Afghanistan, and Russia.  goods carrier trucks enter Pakistan at the zero point Torkham border crossing between Afghanistan and Pakistan, in Nangarhar province. This is made possible by a special order that Pakistan issues to allow barter trade with Iran, Afghanistan, and Russia. Image courtesy of: 

Pakistan issues to allow barter trade with Iran, Afghanistan, and Russia. 

Traders who are on the active taxpayers list and subscribe to the Pakistan Single Window System are eligible for barter trade, according to the government, which claims that the development will increase the quantity of trade and strengthen Pakistan's forex reserves. 

Pakistan issues to allow barter trade with Iran, Afghanistan, and Russia. 

KARACHI: The ministry of commerce said on Friday that Pakistan has officially notified a "Business-to-Business (B2B) Barter Trade Mechanism)" for goods trade with Iran, Afghanistan, and Russia. This allows state-owned businesses and private sector organizations to import and export goods.

Barter trade is open to importers and exporters who are on the list of active taxpayers maintained by the Federal Board of Revenue and who are members of the Pakistan Single Window (FEW) System.

The notification stated, "The trader or their authorized agent shall submit online application for authorization of import and export of goods under the B2B barter trade facility through the online system to the regulatory collector."

Under a B2B barter trade arrangement, the principle of "import followed by export" will apply to the trade of goods, and the value of the goods exported will equal the value of those imported.

Milk, cream, cereal, meat and fish products, fruits and vegetables, rice, salt, pharmaceutical products, finished leather and leather apparel, footwear, steel, and sports goods are among the 26 products that the South Asian nation has identified that can be exported to Afghanistan, Iran, and Russia.

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 are among the items that have been notified to be imported from Afghanistan by the government.

Fruits, nuts, vegetables, spices, minerals and metals, coal and related products, petroleum crude oil, LNG and LPG, chemical products, fertilizers, articles made of plastics and rubber, raw hides and skins, raw wool, and articles made of iron and steel can all be imported by Pakistani importers from Iran.

Pakistani traders will be able to import pulses, wheat, coal and related products, fertilizers, tanning and dying extracts, plastic and rubber products, minerals and metals, chemicals, iron and steel products, textile industrial machinery, and crude petroleum oils from Russia.

In response to the development, Pakistan's commerce ministry stated in an official statement that, in order to make the barter trade system work, its top officials met with high-level delegations from a variety of nations.

The assertion noted it was "an optimal step" taken by the ongoing organization to balance out the nation's economy.

It continued, "It will not only increase the quantity of trade but also increase the country's foreign reserves."

The improvement was additionally acclaimed by the neighborhood business local area.

According to a statement released by the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Irfan Iqbal Sheikh's persistent policy advocacy efforts for the barter trade with Russia, Iran, and Afghanistan had produced results.

"We pitched deals exchange, line markets and cash trade systems tenaciously in many high level gatherings with the concerned services and significant legislative organizations over the beyond three-and-a-half years," FPCCI president Irfan Iqbal Sheik said.

He added the business local area's rehashed recommendations and requests pointed toward convincing the public authority to definitively push ahead and empower, work with and operationalize the bargain exchange course of action with three vital nations.

Given the current gaps in Pakistan's import and export potential, the FPCCI chief hoped the mechanism would benefit the economy.