The government of Pakistan has taken a major economic decision and implemented the Business to Business Barter Trade Mechanism 2023.

Barter trade will be allowed with Afghanistan, Iran and Russia. According to the notification, under the new policy, trade in goods for goods without currency is possible.

The federal government has also issued important amendments to the barter trade mechanism. Barter trade has now been limited to Afghanistan, Iran and Russia only.

According to the notification, the exchange of goods between two countries has been given a formal legal form. Now more than one Pakistani company will be able to enter into a joint agreement under the “consortium”.

Individuals have also been allowed to barter trade. According to the SRO, according to the Ministry of Foreign Affairs, trade will not be done with UN-sanctioned companies. Pakistani companies will provide written guarantees of non-sanctioned foreign partners.

Customs authorities have been given the authority to fully monitor barter trade. The FBR will submit a report to the Ministry of Commerce on a quarterly basis. The permit can be canceled if the trade balance is not maintained.

All companies in the consortium will be jointly liable for any violation, the government has tightened transparency and oversight in the barter trade system, the new policy is expected to increase Pakistan’s trade with Afghanistan, Iran and Russia.