ISLAMABAD-The federal government has approved rules for the conduct of barter trade between Pakistan and other countries including Afghanistan, Iran and Russia.
The ministry of commerce on Friday issued a notification to implement the ‘Business-to-Business (B2B) Barter Trade Mechanism’ that will allow public and private entities to engage with the three countries both in the import and export of goods. An SRO, issued in this regard, stated that importers and exporters, who are the Federal Board of Revenue’s active taxpayers and subscribed to the Pakistan Single Window (FEW) System, can engage in the barter trade.
“Application for authorization of import and export of goods under the B2B barter trade facility shall be submitted online by the trader or their authorized agent through the online system to the regulatory collector,” the notification said. Under the barter mechanism, the trade of goods will be allowed on the principle of “import followed by export” and export would meet the value of imported goods.
The rules will allow Pakistan to import LNG, LPG as well as crude oil to meet the country’s rising energy needs. It will also allow Pakistan to export meat, fruits, vegetables, surgical instruments, textiles, perfumes and cosmetics. Afghanistan and Iran will also become markets for sports goods from Pakistan, in exchange for minerals, metals and coal. Pakistan will also be able to get industrial machinery from Russia based on barter arrangements.
The Pakistani entities can export some 26 goods to Afghanistan, Iran and Russia including milk, cream, eggs and cereal, meat and fish products, fruits and vegetables, rice, salt, pharmaceutical products, finished leather and leather apparel, footwear, steel, and sports goods. The country can import fruits and nuts, vegetables and pulses, spices, minerals and metals, coal and its products, raw rubber items, raw hides and skins, cotton, and iron and steel from Afghanistan.
From Iran, Pakistani traders are allowed importing fruits, nuts, vegetables, spices, minerals and metals, coal and related products, petroleum crude oil, LNG and LPG, chemical products, fertilizers, article of plastics and rubber, raw hides and skins, raw wool and articles of iron and steel. The import items include pulses, wheat, coal and related products, petroleum oils including crude, LNG and LPG, fertilizers, tanning and dying extracts, articles of plastic and rubber, minerals and metals, chemicals products, articles of iron and steel, and items of textile industrial machinery have been allowed from Russia.