Pakistan Introduces Revised Barter Trade Framework with Afghanistan, Iran, and Russia

Photo File (X/Twitter) / Pakistan Introduces Revised Barter Trade Framework

The Government of Pakistan has unveiled a new and improved barter trade framework with Afghanistan, Iran, and Russia, aimed at simplifying cross-border trade and boosting regional commerce. The Ministry of Commerce has officially issued a notification introducing several business-friendly amendments to the existing Barter Trade Mechanism.

Under the revised framework, the mandatory pre-export import requirement has been relaxed, allowing simultaneous import and export transactions. Private entities can now form consortia to facilitate barter trade, and the settlement period for transactions has been extended from 90 to 120 days.

The notification also eliminates the restricted list of specific goods, aligning barter trade with the country’s general import and export policy orders. Officials say these reforms are designed to make the barter system more practical, flexible, and business-oriented.

Introduced in June 2023, Pakistan’s barter trade mechanism faced several implementation challenges, including limited product lists, complex verification requirements, and tight settlement timelines. The Ministry of Commerce held extensive consultations with the State Bank of Pakistan, Ministry of Foreign Affairs, FBR, and Pakistan Single Window to address these obstacles.

Trade experts believe the updated framework will enhance regional connectivity, promote non-dollar trade, and open new opportunities for small and medium enterprises in border regions.