Pakistan Implements Barter Trade Agreement with Russia, Iran, Afghanistan to Alleviate Foreign Reserve Pressure

(MENAFN) Pakistan announced on Friday its initiation of a barter trade agreement with Russia, Iran, and Afghanistan, aiming to ease the mounting pressure on its already depleted foreign reserves. The country's Ministry of Commerce issued an official notification introducing the "Business-to-Business (B2B) Barter Trade Mechanism, 2023" on Thursday, allowing both public and private entities to engage in trade with all three countries under this mechanism.

The notification outlined the trade procedures under the B2B Barter Trade arrangement, stating that the trade of goods would be conducted on the principle of import followed by export. Pakistani entities will be permitted to export a range of 26 items to Russia, Iran, and Afghanistan, including milk, fruits, nuts, vegetables, rice, confectionery and bakery items, salt, pharmaceutical products, leather goods, textiles, electrical equipment, and sports goods.

Additionally, Pakistan will import 11 items from Russia, including petroleum products (such as crude oil), liquefied natural gas (LNG), liquefied petroleum gas (LPG), pulses, wheat, iron, and steel. From Iran, the country will import 10 items such as coal and its products, crude oil, LNG, LPG, fruits, nuts, and vegetables. From Afghanistan, Pakistan will import 10 items including fruits, nuts, vegetables, oil seeds, minerals, and metals.

This development follows a meeting between Pakistan's Prime Minister, Shehbaz Sharif, and Iranian President Ebrahim Raisi last month. As part of its efforts to diversify energy imports, Pakistan has already signed a deal to import oil from Russia. Minister of State for Petroleum, Musadik Malik, confirmed that the first shipment has arrived in Oman and is expected to reach Pakistan in the coming days.

The barter trade agreement with these neighboring countries is seen as a strategic move by Pakistan to alleviate pressure on its foreign reserves and enhance economic cooperation. By leveraging the B2B Mechanism, Pakistan aims to foster trade ties and expand its export opportunities, particularly in sectors such as agriculture, textiles, and pharmaceuticals. The implementation of this trade arrangement is expected to facilitate economic growth and strengthen regional trade relationships.


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.