Karachi, July 10, 2023 – Irfan Iqbal Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), expressed his satisfaction that years of relentless policy advocacy for barter trade with Russia, Iran, and Afghanistan have yielded positive results.
Sheikh highlighted the diligent efforts of FPCCI in promoting barter trade, border markets, and currency swap mechanisms through numerous high-level meetings with relevant ministries and governmental institutions over the past three and a half years.
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One notable initiative by FPCCI was a well-attended interactive session held across its headquarters and regional offices regarding SRO 642 (I) / 2023. The session saw the participation of FPCCI office bearers, prominent business personalities, barter trade stakeholders, and top government officials who addressed queries from representatives of the trade and industry.
Sheikh emphasized that FPCCI’s proposals aimed to persuade the government to enable, facilitate, and operationalize barter trade with Iran, Afghanistan, and Russia. He highlighted the significant potential for Pakistan’s trade with these countries, considering the existing gaps and interdependencies in import and export opportunities.
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Suleman Chawla, Senior Vice President of FPCCI, reiterated the apex body’s longstanding stance on the need for a currency swap mechanism with Russia to stabilize the Pakistani Rupee and facilitate imports of crucial commodities, including crude oil. Chawla also advocated for the establishment of large, organized, secure, and operational border markets with Iran and Afghanistan to boost regional trade.
Regarding SRO 642 (I) / 2023, Sheikh explained that it allows goods to be traded under a Business-to-Business Barter Trade (B2B BT) arrangement, following the principle of import followed by export. He emphasized the need for flexibility in implementing these conditions, considering the neglect of barter trade in previous years, and called for engaging the trading community in the modalities and implementation process.
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Sheikh further noted that exports would be allowed up to the value of imported goods as per the acceptable mechanism outlined in the SRO for exporters. However, Pakistani traders utilizing the SRO would be required to equate or net-off the value of goods within 90 days after authorization, a period he suggested should be extended to 180 days or at least 6 months.
Highlighting the inclusion of high-demand products, Sheikh cited ghee as an example that could significantly contribute to Pakistani export volumes through barter.
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The FPCCI Chief also stressed the importance of establishing commercial banking channels with all trading partners and maximizing the benefits of the TIR (Transports Internationaux Routiers) convention, which facilitates land-based cargo transportation with neighboring, regional, and sub-regional countries.
FPCCI’s efforts aim to enhance trade opportunities, strengthen economic ties, and address the challenges faced by Pakistan in its external trade sector.
