In a game-changing move, Pakistan has paved the way for trade exchanges with Afghanistan, Iran, and Russia, including the barter of goods such as petroleum and natural gas. The Ministry of Commerce has issued a special order to permit this trade, aiming to address the challenging foreign exchange reserves crisis, restore fiscal balance, and combat inflation that soared to a staggering 38% last month.
With the recent government directive, known as the Business-to-Business (B2B) Barter Trade Mechanism 2023, an extensive list of tradable items has been provided. However, participation in this trade process will require approval from both public and private entities.
Sajid Amin, Deputy Director of the Sustainable Development Policy Institute, highlighted that Pakistan, particularly through oil and energy revenues from Russia and Iran, can benefit significantly from barter trade without increasing the demand for dollars.
Experts emphasize that given the dwindling dollar reserves, the opportunity for barter trade holds immense significance for countries. Pakistan’s strategic move sets the stage for transformative economic growth, strengthens regional ties, and opens up new avenues for collaboration and prosperity.
