The Economic Coordination Committee (ECC) of Pakistan’s Cabinet, chaired by Finance Minister Senator Muhammad Aurangzeb, has approved critical amendments to the Business-to-Business (B2B) Barter Trade Mechanism with Afghanistan, Iran, and Russia. The revised framework aims to streamline bilateral trade under non-cash settlement arrangements, offering Pakistani businesses greater flexibility in cross-border transactions amid ongoing global banking constraints.
The Ministry of Commerce presented the draft Statutory Regulatory Order (SRO) outlining the proposed changes, which received formal ECC approval. This step is seen as a significant move to strengthen Pakistan’s regional trade partnerships while ensuring exporters and importers can manage the exchange of essential goods without relying on conventional dollar-based payment systems.
The B2B Barter Trade framework was first introduced in June 2023 to facilitate trade with countries facing sanctions or limited access to international banking channels. Since its introduction, stakeholders had highlighted challenges in practical implementation. The newly approved amendments address these concerns, making the barter system more accessible and potentially expanding trade flows with Afghanistan, Iran, and Russia. By enabling non-cash settlements, the mechanism reduces the dependency on foreign currency reserves while allowing for the continued exchange of critical commodities.
During the ECC meeting, senior officials emphasized that the revised barter trade policy could unlock regional economic opportunities, particularly in sectors such as agriculture, energy, and essential goods. By creating a more efficient and flexible framework, exporters are expected to benefit from streamlined processes, reduced transaction costs, and enhanced access to neighboring markets.
Alongside the barter trade amendments, the ECC also addressed other significant financial matters. These included directing a review of urgent financial requirements following the lease termination of Roosevelt Hotel in New York, approving Rs. 4 billion for land compensation at the Defence Complex in Islamabad with the balance to be met by the Capital Development Authority, and sanctioning Rs. 20 billion for the Interior Division’s law and order support through phased releases under the TSG program. Additionally, Rs. 174.8 million was approved for Frontier Corps KP (N) to support enforcement and operational activities.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Commerce Minister Jam Kamal Khan, Investment Board Minister Qaiser Ahmed Sheikh, Adviser on Privatisation Muhammad Ali, and senior federal secretaries and officials. Finance Minister Aurangzeb stressed the importance of timely support for critical projects while maintaining fiscal discipline. Officials reiterated that the updated B2B barter trade policy is expected to ease supply chain challenges, facilitate smoother regional trade, and support Pakistan’s exporters in navigating economic constraints.
The ECC’s approvals mark a notable step in Pakistan’s strategy to strengthen regional trade ties and reduce vulnerability to global financial disruptions. By refining the barter mechanism, the government aims to enhance economic resilience, diversify trade partnerships, and provide Pakistani businesses with new avenues for growth and sustainability.
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