ISLAMABAD: Pakistan has approved a new barter trade framework to facilitate trade with Afghanistan, Iran, and Russia, allowing the exchange of goods on a broader and more flexible basis.
According to an official notification, amendments to the Business-to-Business (B2B) Barter Trade Mechanism have been issued.
The duration for barter transactions has been extended from 90 to 120 days, while new provisions have been added to the import and export policy.
Under the revised rules, trade will now be permitted based on the value of imports and exports, with customs authorities monitoring activities on a quarterly basis.
As per new trade framework, traders will be required to balance the value of imports and exports every three months; failure to do so will result in the revocation of trade authorization.
The government has also removed the condition requiring imports before exports, allowing both transactions to occur simultaneously.
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Private entities have been granted permission to form consortiums for barter trade, while violations or tax defaults will invite legal and financial action.
Exporters have also been incorporated into the new framework, replacing the previous restricted list with a system aligned with the general import-export policy.
Officials said the updated policy was formulated in consultation with the State Bank of Pakistan, the Ministry of Foreign Affairs, and the Federal Board of Revenue (FBR) after the 2023 barter trade mechanism faced implementation challenges.ISLAMABAD: Pakistan has approved a new barter trade framework to facilitate trade with Afghanistan, Iran, and Russia, allowing the exchange of goods on a broader and more flexible basis.
According to an official notification, amendments to the Business-to-Business (B2B) Barter Trade Mechanism have been issued.
The duration for barter transactions has been extended from 90 to 120 days, while new provisions have been added to the import and export policy.
Under the revised rules, trade will now be permitted based on the value of imports and exports, with customs authorities monitoring activities on a quarterly basis.
As per new trade framework, traders will be required to balance the value of imports and exports every three months; failure to do so will result in the revocation of trade authorization.
The government has also removed the condition requiring imports before exports, allowing both transactions to occur simultaneously.
Private entities have been granted permission to form consortiums for barter trade, while violations or tax defaults will invite legal and financial action.
Exporters have also been incorporated into the new framework, replacing the previous restricted list with a system aligned with the general import-export policy.
Officials said the updated policy was formulated in consultation with the State Bank of Pakistan, the Ministry of Foreign Affairs, and the Federal Board of Revenue (FBR) after the 2023 barter trade mechanism faced implementation challenges.
