Pakistan opens Barter Trade with Russia, Iran and Afghanistan
Barter trade is essentially the trade of goods for goods in which no money is involved.
By: Arshad Farooq Butt
Pakistan has opened barter trade with its neighboring countries Russia, Iran and Afghanistan. Ministry of Commerce Pakistan has issued a notification which allows the government companies as well as the private sector to import and export products with the three countries.
Pakistan is facing huge economic problems and the development of barter trade by Pakistan with the three countries may boost its economy.
Pakistan is also facing the lack of dollars and trade deficit in the country due to the large volume of imports compared to exports in the country’s foreign trade sector. This gap is causing an imbalance of payments.
What is Barter Trade?
Barter trade is the direct exchange of goods and services without using any money. Barter trade is essentially the trade of goods for goods in which no money is involved.
What goods will be bartered?
Pakistan will import fruits, dry fruits, vegetables, pulses, chillies, minerals, metals, coal, raw rubber items, hides, iron and steel from Afghanistan.
Pak will also import dry fruits, chili spices, minerals, metals, coal, petroleum crude oil, LNG, LPG, chemicals, fertilizers, plastics, rubber, iron and steel along with some other goods from Iran.
The government of Pakistan has allowed imports of pulses, wheat, coal, petroleum including crude oil, LNG, LPG, fertilizers, plastics, rubber, minerals, metals, textile industry machinery, iron and steel from Russia.