ISLAMABAD: Pakistan opened the doors for the private sector to barter trade with Afghanistan, Iran, and Russia on Thursday, in a bid to boost regional connectivity and facilitate a local economic lifeline for border communities.
The Economic Coordination Committee (ECC) of Pakistan’s federal cabinet approved changes to the Business-to-Business (B2B) Barter Trade Mechanism, clearing the way for private-sector barter trade with the three regional trading partners.
Such an arrangement has been a long-standing demand of border regions, particularly in Balochistan, which has traditionally relied on cross-border exchanges. But tighter border controls have hit them hard in recent years.
In the case of Iran, informal exchanges across the Balochistan border have featured Iranian dates, blankets, carpets, fresh and dry fruits, vegetables, and petroleum products. Traders on the Pakistani side have supplied rice, wheat flour, livestock, and textiles.
Officials and border communities note that such flows were curtailed after stricter controls and fencing reduced opportunities for undocumented trade.
With Afghanistan, Pakistan has long been a supplier of wheat, flour, cement, sugar, and other consumer staples. In return, Afghan traders send coal, scrap metals, and fresh and dry fruits such as pomegranates, grapes, almonds, and raisins.
These movements, facilitated by the porous nature of the western frontier, provided essential supplies to Afghanistan while supporting demand for Pakistani goods across the border.
Analysts and local business representatives argue that the ECC’s approval of a legal framework for private-sector barter trade could channel these existing flows into formal networks, providing revenue for the state and predictability for traders.
For border communities in Balochistan and Khyber Pakhtunkhwa, who have traditionally relied on such exchanges, the move could ease economic pressures created by the crackdown on informal routes and restore livelihoods linked to cross-border commerce.
The amendments, endorsed through a draft Statutory Regulatory Order (SRO) presented by the Ministry of Commerce, aimed to facilitate bilateral flows across Pakistan’s western borders and ease pressure on formal dollar-denominated trade channels.
Officials said the revised mechanism is designed to diversify regional commerce while reducing reliance on cash settlements.
Alongside this decision, the ECC, chaired by Finance Minister Senator Muhammad Aurangzeb, considered several requests for supplementary grants. It reviewed a summary from the Ministry of Interior on urgent financial support for the Roosevelt Hotel in New York following the termination of its lease agreement with New York City.
The committee expressed support for addressing the hotel’s immediate requirements. But it directed the ministry to revisit its estimates and resubmit them to the ECC.
The Ministry of Defence also secured ECC approval for a technical supplementary grant (TSG) of Rs 4 billion to compensate residents whose land was acquired for the Defence Complex, Islamabad. The Finance Division will arrange these funds, while the Capital Development Authority will cover the balance requirement.
In another decision, the ECC sanctioned Rs 20 billion as TSG for the Ministry of Interior to maintain law and order, with funds to be released in phases by the Finance Division in consultation with the ministry. An additional Rs 174.8 million was cleared for law enforcement expenditures of Frontier Corps KP (North), Peshawar.
Federal Minister for Petroleum Ali Pervaiz Malik, Commerce Minister Jam Kamal Khan, Investment Board Minister Qaiser Ahmed Sheikh, Adviser to the Prime Minister on Privatisation Muhammad Ali, as well as senior federal secretaries and officials from regulatory bodies attended the meeting.
In another decision, the ECC sanctioned Rs 20 billion as TSG for the Ministry of Interior to maintain law and order. The Finance Division will release the amount in phases, in consultation with the ministry. A further Rs 174.8 million was approved for law enforcement expenditures of Frontier Corps KP (North), Peshawar.
Separately, the committee considered and approved a draft Statutory Regulatory Order (SRO) presented by the Ministry of Commerce to amend the Business-to-Business (B2B) Barter Trade Mechanism with Afghanistan, Iran, and Russia. The changes are aimed at facilitating bilateral trade flows with the three countries, officials noted.
Federal Minister for Petroleum Ali Pervaiz Malik, Commerce Minister Jam Kamal Khan, Investment Board Minister Qaiser Ahmed Sheikh, Adviser to the Prime Minister on Privatisation Muhammad Ali, as well as senior federal secretaries and officials from relevant ministries, attended the meeting.
