In another step to ease the burden on dwindling foreign exchange reserves in the country, Pakistan has passed a special order to allow barter trade with Afghanistan, Iran, and Russia for certain items — including petroleum, LNG, coal, minerals, metals, wheat, pulses, and several other food items.
According to a statutory regulatory order (SRO), issued by the Ministry of Commerce on Friday, the Government of Pakistan has allowed the import and export of goods under B2B barter trade with three countries including Afghanistan, Iran, and Russia.
ALSO READ:
WHERE DO THE WEALTHIEST AMERICANS RESIDE?
At a time when the Consumer Price Index (CPI) touched 38% and Sensitive Price Indicator (SPI)-based inflation clocked 48%, Pakistan has decided to allow barter trade with neighboring countries, in the wake of the International Monetary Fund (IMF) not coming to rescue the ailing economy of the country.
The list permitted the export of 26 items to Russia, Iran, and Afghanistan. These include finished leather, ready-made clothing, textile made-ups, iron and steel, copper, aluminum, tool and cutlery, electric fans and home appliances, electrified lighting, salt, pharmaceutical products, essential oils, perfumes, cosmetics, toiletries, soaps, lubricants, waxes, and matches.
ALSO READ:
TOP 5 DEGREES THAT MAKE MOVING TO UK EASIER FOR PAKISTANI STUDENTS
The government order, dated June 1 and titled Business-to-Business (B2B) Barter Trade Mechanism 2023, lists the items that can be bartered and specifies the procedure to be followed.
The regulatory collector must receive applications for authorization of import and export of goods under the B2B barter trade facility online from traders or their authorized agents, according to the notification.
The government has announced the items that can be imported from Afghanistan, including raw rubber goods, raw hides and skins, cotton, iron, and steel. Other items include fruits, nuts, vegetables, pulses, spices, minerals, and metals.
ALSO READ:
MINISTRY EXTENDS APPLICATION DEADLINE FOR HAJJ 2023
Pakistani importers are permitted to bring in a variety of goods from Iran, including fruits, nuts, vegetables, spices, metals, coal, LNG, and LPG, as well as chemicals, fertilisers, articles made of plastic and rubber, raw hides and skins, raw wool, and articles of iron and steel.
Pakistani traders will be able to import from Russia items like pulses, wheat, coal and related products, LNG and LPG, petroleum oils, including crude, fertilisers, tanning and dyeing extracts, articles made of plastic and rubber, minerals and metals, chemicals, iron and steel, and textile industrial machinery.
ALSO READ:
THE GLOBAL IMPACT: WHAT WOULD HAPPEN IF AMERICA DEFAULTS ON ITS DEBT?
Furthermore, sources claimed that the barter trade would aid in overcoming banking transactions because, in the case of Iran, official channels were closed due to the economic sanctions imposed by the United States of America.
A B2B barter trade agreement will permit the trade of goods under the “import followed by export” tenet, where export would equal the value of imported goods.
