Currency swap with Moscow demanded: FPCCI hails barter trade with Russia, Iran and Afghanistan

KARACHI: Irfan Iqbal Sheikh, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed his profound satisfaction that FPCCI’s years of relentless policy advocacy initiatives for the barter trade with Russia, Iran and Afghanistan has borne fruits.

“We have pitched barters trade, border markets and currency swap mechanisms very diligently in tens of top-level meetings with the concerned ministries and relevant governmental institutions over the past three-and-a-half years,” he added.

It is pertinent to note that the implementation date of the SRO. 642 dated June 1, 2023 of the ministry of commerce has been set with an immediate effect; i.e. June 1, 2023 – enabling the traders to start utilizing the mechanism right way.

Irfan Iqbal Sheikh acknowledged the efforts of his predecessors and industry leaders in this giant stride namely, Mian Nasser Hyatt Maggo, immediate past President FPCCI and Mian Anjum Nisar, former President FPCCI and currently VP, SAARC Chamber (SCCI).

FPCCI Chief apprised that these repeated proposals and demands were aimed at persuading the government to decisively move forward for the enablement, facilitation and operationalization and, now Pakistan’s trade with three very important countries can multiply quickly due to the prevalent gaps in import and export potential of Pakistan vis-à-vis these three very important countries.

Irfan Iqbal Sheikh explained that as result of the aforementioned SRO, trade of goods under a Business-to-Business Barter Trade (B2B BT) arrangement will be allowed on the principle of import followed by export. Additionally, the export would be allowed to the ceiling of value of imported goods on the basis of the acceptable mechanism provided in the SRO for the concerned exporters. Nonetheless, a Pakistani trader, capitalizing on the SRO, will be responsible to equate or net-off value of goods in every quarter; i.e., within 90 days after authorization is granted.

He reiterated his longstanding stance that there should be a currency swap mechanism with Russia to stabilize Pak Rupee and opening-up of new avenues of import for many crucial commodities in large quantities; including crude oil. Furthermore, FPCCI advocates setting up of large, organized, secure and operational border markets with Iran & Afghanistan to boost regional trade.

Copyright Business Recorder, 2023