**Pakistan’s Joint Committee Proposes Key Barter Trade Reforms to Enhance Commerce with Iran via Balochistan**
Pakistan’s Joint Committee on Commerce, Finance, and Revenue has put forward a series of crucial reforms aimed at revamping the country’s Barter Trade Mechanism 2023, with a focus on boosting cross-border trade with Iran through Balochistan. The recommendations are expected to streamline processes, reduce barriers for traders, and strengthen economic ties with Iran.
Chaired by Senator Anusha Rahman and Senator Saleem Mandviwala, the committee extensively reviewed the procedural hurdles embedded in the current trade framework, particularly within SRO 642(1)/2023. The committee directed the Ministry of Commerce to eliminate restrictive provisions that have been obstructing regional trade activities. One of the primary concerns highlighted was the mandatory digital data submission via the Pakistan Single Window (PSW) and WeBOC platforms, which was found burdensome for traders operating in remote areas. As a solution, the committee recommended that while Customs should manage trader registration in these systems, traders themselves should be permitted to submit requisite data through manual means.
The committee also recommended amending the rigid 90-day net-off condition that obliges traders to match the value of imports and exports within a set period. Instead, the assessment of these values should be reviewed and listed by Customs, offering greater flexibility and reducing operational pressure on traders engaging in barter transactions.
Additionally, concerns were raised over the current valuation mechanism, especially the dependence on assessed values and the automatic debiting of accounts via WeBOC. The committee emphasized the need for Customs to consult with local Chambers of Commerce and traders in order to design a more practical, market-reflective valuation process that considers the unique challenges and realities of regional trade.
To provide greater certainty for traders, the committee endorsed extending barter trade authorization validity from one year to three years. It also called for more transparency and fairness regarding the authority to curtail authorization limits, insisting that regulatory action must be supported by clear, sound reasoning.
Addressing compliance issues, the committee recommended revising the penalty clause to avoid overly harsh actions such as cancellation of licenses, blacklisting, or financial penalties for minor non-compliance. Instead, a hearing and fair resolution process should be adopted to foster trust and encourage genuine trading activities.
Recognizing the differences in sanctions regimes, the committee further suggested establishing separate barter trade agreements for Iran, Afghanistan, and Russia. The recently amended SRO applies specifically to trade with Iran.
Following consultations with stakeholders, the committee approved three significant amendments to be incorporated into the SRO. These comprise:
1. Removing the restrictive list of exportable and importable products to permit broader trade in line with export and import policies.
2. Eliminating the requirement of “import followed by export,” thereby allowing more flexible and independent transactions.
3. Introducing provisions for multiparty contractual arrangements, such as consortiums, to support joint trading ventures by private entities.
These reforms are designed to make barter trade more accessible, promote private sector involvement, and facilitate legal cross-border trade. They are also expected to support economic development in Balochistan while deepening economic cooperation between Pakistan and Iran.
The Ministry of Commerce has been instructed to initiate the amendment process immediately. These changes underline the committee’s commitment to creating a modern, inclusive, and practical barter trade environment for regional prosperity.
