President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Irfan Iqbal Sheikh, has welcomed the barter trade with Afghanistan, Iran and Russia.
Through numerous high-level meetings with relevant ministries and government institutions over the past three-and-a-half years, the FPCCI had diligently presented proposals for barter trade, border markets, and currency swap mechanisms.
The Ministry of Commerce’s SRO. 642 dated June 01, 2023, is set to be implemented immediately, starting from the same date. This enables traders to start utilizing the mechanism right away.
Acknowledging the efforts of his predecessors and industry leaders, including Mian Nasser Hyatt Maggo, the immediate past President of FPCCI, and Mian Anjum Nisar, former President of FPCCI and current VP of the SAARC Chamber (SCCI), Irfan Iqbal Sheikh emphasized the significance of this achievement.
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The repeated proposals and demands put forward by the FPCCI were aimed at persuading the government to enable, facilitate, and operationalize trade with these three crucial countries: Russia, Iran, and Afghanistan. Pakistan’s trade potential with these countries is significant, and addressing the existing gaps in import and export can lead to rapid growth.
Under the newly implemented SRO, the trade of goods will follow a Business-to-Business Barter Trade (B2B BT) arrangement, with imports being followed by exports.
Export will be allowed up to the value of the imported goods, based on the acceptable mechanism provided in the SRO for exporters. Pakistani traders utilizing the SRO will need to reconcile or net-off the value of goods within every quarter, within 90 days of authorization.
President Irfan Iqbal Sheikh restated the FPCCI’s longstanding stance on establishing a currency swap mechanism with Russia to stabilize the Pakistani Rupee and expand import opportunities for crucial commodities, including crude oil.
Additionally, the FPCCI advocated the establishment of large, organized, secure, and operational border markets with Iran and Afghanistan, which will further boost regional trade.
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