Pakistan has implemented the ‘Business-to-Business Barter Trade Mechanism 2023’ to allow barter trade with Russia, Iran and Afghanistan, according to the ministry of commerce officials.
This initiative will help boost trade and manage a balance of payments crisis and dwindling foreign currency reserves.
“The initiative is an important step toward stabilizing the economy, and it would not only help increase foreign exchange reserves but would also help promote trade,” Commerce Minister Syed Naveed Qamar said.
“The initiative is an important step toward stabilizing the economy, and it would not only help increase foreign exchange reserves but would also help promote trade,” the ministry said in a statement on June 2.
The barter trade mechanism lists 26 commodities that Pakistani state and privately owned entities can export to markets in Afghanistan, Iran and Russia.
Which products will be exported?
Pakistani traders would be able to export milk, cream, eggs, cereals, meat, fish products, fresh fruits and vegetables, rice, pharmaceutical products, chemicals, perfume, cosmetics, plastic, rubber, leather, wood products and furniture items, textiles, readymade garments, paper, footwear, iron and steel, electric fans, home appliances, sports goods, and motorcycles and tractors. In addition, the traders could also export surgical products and sports goods, the ministry said.
Which products will be imported?
Under the barter trade mechanism, Pakistan will acquire essential commodities from the three countries.
Pakistan will import these products from Afghanistan: Fruits and nuts, vegetables and pulses, spices, oil seeds, minerals and metals, coal, and its products, raw rubber items, raw hides and skins, cotton, iron and steel.
Pakistan will import these products from Iran: Fruits and dry fruits, vegetables and pulses, spices, minerals and metals, coal and its products as well as petroleum crude oil, LNG and LPG, chemical products, fertilizers, plastic and rubber items, raw wool, iron, and steel articles.
Pakistan will import these products from Russia: Pulses, wheat, coal and its products as well as petroleum oil, LNG and LPG, fertilizers, minerals, and metals, articles of wood and paper, plastic and rubber items, chemical products, articles of iron and steel, and items of textile industrial machinery.
Pakistan is set to receive its first shipment of discounted crude oil from Russia later in June 2023.
