Implementation of decision on border trade with Iran, Afghanistan demanded

ISLAMABAD: Business community of Balochistan has welcomed opportunities for barter trade with Iran and Afghanistan with a request to the Federal Board of Revenue (FBR) to immediately take measures to implement the decision through Customs in border areas.

In this regard, the FBR has received a formal request of the business and trade community of Balochistan after the Ministry of Commerce issued SRO 484(I)/2022 and SRO 485(I)/2022 to amend the Export Policy Order (EPO), 2020 and Import Policy Order (IPO), 2020 to formally start barter trade with Iran and Afghanistan.

Through these notifications, Pakistan has cleared a legal mechanism to provide for barter trade with Iran and Afghanistan.

According to these notifications, imports and exports shall be allowed under the barter trade arrangement as approved by the Commerce Ministry. In a statement issued here on Thursday, Fida Hussain Dashti, president, Quetta-Balochistan Chamber of Commerce and Industry said that the decision of barter trade would increase business activities with Iran by providing job opportunities to small local businessmen.

The legal cover given to the barter trade was a major demand of the business community of Balochistan. The decision would be instrumental in facilitating the poor local people working near border areas of Iran.

He highly appreciated the role of the Commerce Ministry in the issuance of the SRO 484(I)/2022 and SRO 485(I)/2022.

The exporters of Balochistan would have a unique opportunity to engage in barter trade with the neighbouring country. In light of detailed deliberations involving relevant public and private sector stakeholders, the State Bank of Pakistan has endorsed a proposal for establishing a barter trade mechanism between Pakistan and Iran as the best viable option.

Fida added that the FBR has to play its important role in placing the necessary infrastructure and Customs staff to ensure smooth implementation of the barter trade arrangement agreed between the two countries.

Senior Vice President Muhammad Ayub, Vice President Amjad Ali Siddiqui, and other office-bearers of the association have welcomed the government decision, saying that the bilateral trade with Iran is expected to increase. The government would be able to achieve its export targets with the neighbouring countries through this important initiative of barter trade. In the absence of banking channels and international sanctions on Iran, the businessmen from Balochistan were facing serious problems in trading with Iranian companies.

However, this one step of barter trade will resume bilateral trade with Iran, they added.

Fida Hussain Dashti further said that both governments have committed to expand barter trade arrangements by involving other chambers. The proposed regulatory amendments will cater to barter trade arrangements both with Iran and Afghanistan. In view of the foregoing, the Commerce Ministry has provided regulatory cover to barter trade arrangements, he added.

Copyright Business Recorder, 2022