Islamabad -UNS– The Joint Committee on Commerce, Finance, and Revenue, under the dynamic leadership of Senator Anusha Rahman and Senator Saleem Mandviwala, has recommended strategic amendments to the Barter Trade Mechanism 2023 to enhance cross-border trade between Pakistan and Iran, particularly through Balochistan.
The Committee reviewed key procedural bottlenecks in SRO 642(1)/2023 and directed the Ministry of Commerce to remove restrictive provisions hindering regional trade. It was recommended that mandatory registration with PSW and WeBOC be carried out by Customs, while traders should be allowed to submit required data manually. The digital submission requirement was seen as burdensome for traders in remote areas.
The Committee proposed amending the rigid 90-day net-off condition, which required traders to balance import and export values within a fixed timeframe. It is recommended that assessment of the values is reviewed and listed by Customs to simplify the system . This amendment aims to improve operational flexibility in barter transactions.
The Committee also asked the Ministry to review the valuation mechanism, particularly the reliance on assessed values and automatic debiting via WeBOC, which may not align with actual trade practices in the region. It was recommended that the regulatory authority, i.e. Customs, should sit with the respective Chambers of Commerce and traders to jointly assess and agree on a practical, trade-friendly valuation mechanism that reflects real market dynamics and regional constraints.
The Committee endorsed extending the validity of barter trade authorizations from one year to three years, providing traders with greater certainty and execution time.
Additionally, the Committee recommended relaxing the provision that allows the Regulatory Collector to curtail authorization limits, stressing that any such action must be justified with clear and cogent reasons to ensure fairness and transparency in enforcement.
The Committee further recommended revising the penalty clause, stating that strict actions such as cancellation, blacklisting, or financial penalties may deter genuine trade efforts. Instead, it urged that cases of non-compliance be addressed through a hearing process and fair resolution mechanisms, fostering trust among traders and supporting bilateral trade and globalization.
The Committee further recommended to make a separate barter trade agremeent for Iran and separate for Afghanistan and Russia having different sanctions. This SRO has been amended for the Iran.
Following stakeholder consultations, the Committee approved the following three key amendments to be incorporated in the SRO besides recommending the above amendemnts:
1. Removal of the limited list of exportable and importable products to allow broader trade options as per epo and ipo.
2. Removal of the “import followed by export” condition, enabling independent transactions
3. Inclusion of multiparty contractual arrangements (e.g., consortiums) to facilitate joint trade by private entities.
These reforms aim to simplify procedures, encourage private sector participation, and stimulate legal trade, while supporting the economic uplift of Balochistan and deepening trade ties with Iran.
The Ministry was instructed to initiate the amendment process without delay, reaffirming the Committee’s commitment to building a modern, inclusive, and practical barter trade framework.
