Chairman Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), Zubair Motiwala has welcomed Pakistan’s government decision of initiating Barter Trade with Afghanistan, Iran and Russia.
Chairman Stated that in consequence of series of meetings, since 2021 by PAJCCI (Focus Group Discussion, Joint Committee Meetings, Committee Meetings, Stakeholders Meeting and Border meetings at Torkham, Chaman, Ghulam Khan, Kharlachi) had been recommending several measures to facilitate economic activity with Afghanistan including waiver of E-Form & EIF requirement for extended period till finalization of alternate mechanism, opening up of new border crossings, increase in timings at existing border crossings, reducing multiple and manual checks, adding items to PKR trading category, barter trade mechanism implementation, exploring new items for trade, cross-stuffing.
June 09, 2022 PAJCCI kicked off 9th Focus Group Discussion with focus on developing Barter Trade Mechanism Development at Islamabad which was attended by a large number of business community members from Pakistan and Afghanistan, government dignitaries included Mohammad Sadiq; Special Adviser to Prime Minister, Iftikhar Hussain; Director Transit Trade, Maria Kazi; Ministry of Commerce, Mehtab Hussain; State Bank of Pakistan and several other members from FBR, TDAP, Finance, representatives of trade associations and media.
The Ministry of Commerce said on Friday that its order, the Business to Business Barter Trade Mechanism 2023, shall come into force at once by issuing SRO to facilitate trade between Pakistan, Afghanistan, Iran and Russia through Business to Business (B2B) Barter Trade Mechanism.
The decision has been taken in view of current macroeconomic situation in the country and lack of formal banking sector and sanctions in Afghanistan.
According to notification Pakistan can export 26 items to Iran, Afghanistan and Russia and in return can import different items including gas, petroleum products and coal from these countries without payment in dollars.
President Qazi Zahid has stated that PAJCCI, has made a long struggle in highlighting the importance of barter trade and held several meetings with concerned officials both in Pakistan and Afghanistan.
Former President, Executive Director Junaid Makda also stated that “The decision is timely and in right direction while keeping in view the problems being faced by business community dealing in trade with Afghanistan,” while the PAJCCI is a license body issued by MOC (DGTO) as a joint chamber and all Pakistan based but unfortunately the mandate of PAJCCI as lead role (as per notification issued by MOC on April 30 2022) to strengthen the b2b mechanism in its true spirit in terms of the verification of the document, establishment of Barter Trade House, disputes resolutions at regional offices, signing the affidavit by the importer and exporter on both sides and also to play its vital role to help out the regulator without banking system, by endorsing the document to present before the Pakistan Single Window (PSW) is the missing part of this SRO.
Chairman PAJCCI said the decision of allowing barter trade will prove as win-win situation for all the stakeholders and usher in a new era of prosperity and development through promotion of commerce and trade in the whole region, benefitting millions of people.