ISLAMABAD(republic policy): Commerce Ministry has been empowered to impose country or commodity-specific conditions or restrictions for imports/ exports of goods under the B2B Barter Trade Mechanism, official sources told Business Recorder.
Sharing the details, sources said that according to the decision of the ECC/ Cabinet, Commerce Ministry issued SRO 484(1) 2022 and SRO 485(1)/2022 on April 1, 2022, whereby provisions concerning barter trade had been incorporated into Import Policy Order (IPO) and Export Policy Order (EPO) thus providing a legal framework for carrying out trade transactions through barter mode. Only to the extent of Pak-Iran trade, the Ministry of Commerce had notified a comprehensive procedure (SOPs) for operationalization of the Barter Trade Mechanism between Pakistan and Iran. Quetta Chamber of Commerce & Industry (QCCI) from Pakistan side and Zahidan Chamber of Commerce & Industry (ZCCI) from Iran side were responsible for registration of importers and exporters and recording and monitoring of trade transactions etc. under the barter system.
According to sources, Commerce Ministry felt that a standardized procedure, with due safeguards, for the regulation of Barter Trade through B2B should be notified. In consultation with stakeholders, Ministry of Commerce prepared a draft SRO for affecting B2B barter trade, and shared it with State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) for seeking their comments thereto.
Both FBR and SBP supported the proposal of establishing a mechanism/ procedure for B2B barter trade system with an oversight to ensure sanctions screening (commodities and entities), dispute resolution, and accounting/ settlement of transactions, trade balance and time to time updating of operational modalities.
