Oct 21, 2025 |
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Pakistan has restored and significantly revised its barter trade framework with Iran and Afghanistan (as well as Russia) by introducing a new Business-to-Business (B2B) mechanism. Key changes include extending the settlement period from 90 to 120 days, removing the previous requirement for imports to precede exports, and aligning the framework with general import and export policies instead of a restrictive list of goods. These revisions aim to simplify operations and address challenges that slowed down the previous system.
Key changes in the new barter trade mechanism
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Settlement period:Extended from 90 days to 120 days.
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Import/export sequence:The previous condition that imports must come before exports has been removed, allowing for simultaneous transactions.
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Goods restrictions:The previous restrictive list of approved goods has been abolished, and the framework now aligns with Pakistan’s general export and import policy orders.
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Value balancing:Traders are required to balance the value of imports and exports every three months; failure to do so will result in the cancellation of their trade authorization.
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Scope:The B2B barter trade mechanism is now officially limited to transactions with Afghanistan, Iran, and Russia.
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Compliance:New compliance obligations have been added, including requirements for sanction-screening and the establishment of consortiums for private entities.
Purpose of the revision
- To address operational challenges and difficulties that traders faced with the previous mechanism.
- To make the trade process more business-friendly and practical.
- To encourage private sector participation and a more efficient cross-border trade environment.
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