KARACHI: Irfan Iqbal Sheikh, President FPCCI, has expressed his satisfaction that FPCCI’s years of relentless policy advocacy initiatives for the barter trade with Russia, Iran and Afghanistan has borne fruits.
We have pitched barter trade, border markets and currency swap mechanisms very diligently in tens of top-level meetings with the concerned ministries and relevant governmental institutions over the past three-and-a-half years, he added.
It is pertinent to note that FPCCI conducted an interactive session across its headquarters and regional offices on SRO 642 (I)/2023; which saw the participation of FPCCI office-bearers, prominent business personalities, barter trade stakeholders and top government officials– who answered queries of the trade and industry representatives.
Irfan Iqbal Sheikh apprised that FPCCI’s repeated proposals and demands were aimed at persuading the government to decisively move forward for the enablement, facilitation and operationalisation of the barter trade with Iran, Afghanistan and Russia; and, now Pakistan’s trade with three very important countries can multiply quickly due to the prevalent gaps and share interdependencies in import and export potential of Pakistan vis-à-vis these three very important countries.
Suleman Chawla, SVP FPCCI, reiterated apex body’s longstanding stance that there should be a currency swap mechanism with Russia to stabilise Pak rupee and opening up of new avenues of import for many crucial commodities in large quantities including crude oil. Furthermore, the FPCCI advocates setting up of large, organised, secure and operational border markets with Iran and Afghanistan to boost regional trade.
Irfan Iqbal Sheikh has explained that as result of the aforementioned SRO, trade of goods under a Business-to-Business Barter Trade (B2B BT) arrangement will be allowed on the principle of import followed by export.
He stressed that these conditions need flexibility as barter trade has been neglected for many years; and, the trading community needs to be taken into confidence in modalities and their implementation.
Additionally, he added, under the SRO 642 (I)/2023, the export would be allowed to the ceiling of value of imported goods; on the basis of the acceptable mechanism provided in the SRO for the concerned exporters.
Nonetheless, a Pakistani trader, capitalizing on the SRO, will be responsible to equate or net-off value of goods in every quarter; i.e. within 90 days after authorization is granted – and, 90 days is too short a period for the netting off import and export. Therefore, it should be enhanced to 180 days or 6 months at the minimum.
Irfan Iqbal Sheikh also called for the inclusion of some very important and high in demand products to be included under the allowed goods; and, one such example is ghee as it can contribute significantly in Pakistani export volumes through barter.
The FPCCI chief reiterated his stance that Pakistan needs to set up commercial banking channels with all its trading partners; and, we should fully capitalise on TIR convention which has opened the doors for land-based cargoes with our neighbors, regional and sub-regional countries.
Copyright Business Recorder, 2023