Quoting Pakistani Commerce Ministry sources, Daily Business Recorder said in its report on Saturday that the pact was signed during a recent visit of Pakistan's Prime Minister's Advisor on Commerce and Investment Abdul Razak Dawood to Teheran wherein the two countries expressed their intention to increase bilateral trade to $5 billion per annum and remove all bottlenecks.
"It has been decided in consultation between the Government of Pakistan and the Government of Iran that a barter trade mechanism will be established between Quetta Chamber of Commerce and Industry and Zahedan Chamber of Commerce and Industry (and other counterpart chambers)," the sources added. Both sides have already identified over 50 items for bilateral trade with rice and petroleum products at the top of the list.
The paper said the Barter Trade Mechanism will work in the following ways: (i) the barter trade shall be done via land route through legal customs notified border crossing points between the two countries; (ii) there will be no monetary transaction under the barter trade arrangement. Pakistani importers will pay Pakistani exporters in lieu of goods and services exported by them in Pak Rupees and the same mechanism will apply on the Iranian side; (iii) on imports/exports of goods by either side, the party will submit documentary evidence such as Good Declaration to the focal persons in Quetta Chamber of Commerce and Industry, and counterpart Chambers viz. Zahedan Chamber of Commerce and Industry; (iv) in order to meet the objective of barter trade mechanism both parties must finalize international mechanism to remove difficulties in barter trade.
The 9th meeting of Iran-Pakistan Joint Trade Committee was held in Tehran on 6-7 November during which both sides agreed to increase the bilateral trade volume to $5 billion.
Meanwhile a memorandum of understanding was also signed between the Quetta Chamber of Commerce and Industry and the Zahedan Chamber of Commerce to strengthen cooperation.
The Federation of Chambers of Commerce and Industry of Pakistan has welcomed the new stage in Tehran-Islamabad trade cooperation, emphasizing the need for a constructive approach of the Pakistani Government, including the State Bank of Pakistan to help achieve common business goals.
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