Pakistan relaxes barter trade rules with Afghanistan, Iran, and Russia, allowing simultaneous imports and exports and extending transaction deadlines to 120 days.
By our correspondent
ISLAMABAD: Pakistan has relaxed the rules governing its barter trade with Afghanistan, Iran, and Russia, in an effort to boost cross-border commerce and address operational challenges that have hampered the mechanism since its launch last year. The Ministry of Commerce announced the revised framework on Tuesday, introducing amendments designed to make the state-to-state and business-to-business trading system more practical and accessible for private enterprises.
Under the updated rules, companies can now conduct imports and exports simultaneously, eliminating the previous requirement that imports must be completed before exports could proceed. Private firms are also allowed to form consortia to participate in barter trade, the maximum transaction completion period has been extended from 90 to 120 days, and the restrictive list of specific items eligible for barter has been removed.
The barter mechanism, originally launched in June 2023, quickly encountered criticism from businesses. Stakeholders cited the narrow list of approved goods, the mandatory sequencing of imports before exports, and the short 90-day settlement period as key obstacles that slowed trade and caused cash-flow challenges. In response, the commerce ministry conducted extensive consultations with relevant authorities, including the State Bank of Pakistan, Ministry of Foreign Affairs, Federal Board of Revenue, and Pakistan Single Window, to identify practical solutions.
Officials said the reforms are intended to align barter trade more closely with Pakistan’s broader import-export policy, making it a more flexible and business-friendly mechanism. The changes aim to increase trade volumes, improve liquidity for participating firms, and strengthen economic ties with neighbouring countries and Russia amid challenging economic conditions.
By removing procedural bottlenecks and offering greater operational flexibility, the government hopes the revisions will reinvigorate interest in barter trade, providing a viable alternative to cash-based transactions. Analysts said the move could also open opportunities for expanded regional commerce, enhancing Pakistan’s strategic trade corridors and supporting long-term economic growth.
