Pakistan’s Trade Secretary, Jawad Pal, has stated that trade with Iran will be conducted on a “barter” basis rather than traditional monetary methods, and a new SRO (Statutory Regulatory Order) has been prepared for this purpose.
During a meeting of the Senate Standing Committee on Commerce on Tuesday, Jawad Pal told the committee that “a new SRO has been prepared for barter trade between the two countries. Four issues had been identified, which have now been resolved. Since there are no banking channels with Iran, barter trade is being used.”
The Senate Standing Committee on Commerce meeting was held on Tuesday in Parliament under the chairmanship of Senator Anusha Rahman. The meeting was attended by Commerce Minister Jam Kamal Khan and Trade Secretary Jawad Pal.
The meeting reviewed ways to increase Pakistan-Iran border trade and remove existing barriers, with a briefing provided by the Ministry of Commerce. However, the briefing did not clarify whether barter trade falls under international sanctions.
Jawad Pal explained during the briefing: “Pakistan-Iran barter trade will be carried out under the Import and Export Policy Order. Now, in addition to individuals or companies, consortia can also conduct barter trade. Previously, exports had to be completed before imports; now, imports can also occur first. The net off period has been increased from 90 days to 120 days.”
He further added: “A new SRO is being prepared for Pakistan-Iran border trade. Barter trade will be conducted under the Trade, Import, and Export Policy Order. Pakistan does not accept data written manually or on WEbook through Single Window. For this, FBR has not agreed. The work can either be done by clearing agents or traders can appoint their own representatives.”
Senator Bilal Ahmed stated, “Imports of apples from Iran should be reduced. Iranian apples harm local Balochistan apple growers. Iranian apples arriving via Afghanistan are also cheaper.”
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Committee Chairperson Senator Anusha Rahman said, “Traders have expressed that customs valuation for products should be fixed.”
In response, the Trade Secretary said, “Only the FBR Chairman or Customs Member can answer this. The chambers had requested barter trade, and the government has approved it. The Ministry is taking all measures to promote trade.”
Commerce Minister Jam Kamal told the committee, “The private sector will be promoted to enhance trade with Iran. Trade between Pakistan and Iran needs to increase. Iran also wants to boost trade in border areas.”
He added, “Business has become very important for the people of Balochistan.”