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Pakistan Overhauls B2B Barter Rules With Iran, Russia and Afghanistan

The revision is designed to unblock stalled trade by replacing earlier restrictions with a simpler, business-led process.

Overview

  • The Ministry of Commerce issued an amended Statutory Regulatory Order on October 19, putting a revised barter mechanism into effect.
  • The narrow list of permitted items has been scrapped, aligning eligible goods with Pakistan’s general Export and Import Policy Orders.
  • Imports and exports may now occur simultaneously, and the transaction completion window has been extended from 90 to 120 days.
  • Private firms can form consortia, and embassy verification is replaced by undertakings from Pakistani entities affirming that foreign counterparties are not sanctioned.
  • Customs will enforce quarterly net-off of values and can invalidate authorizations or take action under the Customs Act for non-compliance, following ECC-backed consultations with SBP, Foreign Affairs, FBR and Pakistan Single Window.