QUETTA: The Joint Senate Standing Committee on Commerce, Finance, and Revenue Wednesday proposed key amendments to the Barter Trade Mechanism 2023 in order to strengthen crossborder trade between Pakistan and Iran, particularly through Balochistan.
The joint meeting, co-chaired by Senator Anusha Rehman and Senator Saleem Mandviwalla, reviewed major procedural challenges in SRO 642(1)/2023 and directed the Ministry of Commerce to eliminate restrictive provisions hampering regional trade.
Among the recommendations was that mandatory registration with PSW (Pakistan Single Window) and WeBOC be handled by Customs, while traders should be allowed to submit the required data manually —especially those operating in remote areas where digital access is limited.
The committee also proposed amending the rigid 90-day net-off condition, which currently requires traders to balance import and export values within a fixed timeframe.
It was recommended that Customs take on the responsibility of assessing and listing trade values to improve operational flexibility in barter transactions.
Furthermore, the committee called on the ministry to review the valuation mechanism, especially the reliance on assessed values and automatic debits via WeBOC, which may not reflect real trade practices in border regions.
It suggested that Customs work directly with the local Chambers of Commerce and traders to establish a more practical and trade-friendly valuation method based on actual market dynamics and regional conditions.
A significant recommendation included extending the validity of barter trade authorizations from one year to three years, offering greater certainty and operational continuity to traders.
The committee also emphasized that any decision by the Regulatory Collector to reduce authorization limits must be based on clear and justified reasons to ensure transparency and fairness.
Officials further shared that the committee recommended revisions to the penalty clauses in the current framework. Instead of immediate cancellation, blacklisting, or heavy financial penalties, non-compliance cases should be resolved through a hearing process, promoting trader trust and supporting bilateral trade.
Additionally, the committee suggested drafting separate barter trade agreements for Iran, Afghanistan, and Russia, given their differing sanction regimes. The current SRO has been amended specifically for Iran.
Following consultations with stakeholders, the committee approved three key amendments to be incorporated into the SRO: removal of the restricted list of exportable and importable products, allowing broader trade options under the existing Export Policy Order (EPO) and Import Policy Order (IPO); elimination of the “import followed by export” requirement, allowing for independent transactions; and inclusion of multiparty contractual arrangements, such as consortiums, to support joint trade initiatives by private entities.
These reforms aim to simplify procedures, encourage private-sector engagement, and legalize cross-border commerce, ultimately supporting economic development in Balochistan and strengthening trade ties with Iran.
The joint committee has instructed the Ministry of Commerce to begin the amendment process without delay, reiterating its commitment to building a modern, inclusive, and practical barter trade framework.
A second joint session of the Senate Standing Committees on Finance & Revenue and Commerce was held at the Chief Minister’s Secretariat, chaired by Senator Saleem Mandviwalla.
The meeting focused on trade challenges, anti-smuggling measures, and issues faced by the business community in Balochistan.
The session was attended by Chief Minister Mir Sarfraz Bugti, Provincial Minister for Agriculture Ali Hassan Zehri, Chief Secretary Shakeel Qadir Khan, coordinator to the prime minister on commerce, the commander of Frontier Corps at the Chaman border, chief executive of the Trade Development Authority of Pakistan (TDAP), and senior officials from the ministries of commerce, finance & revenue, and Customs (FBR).
The participants held in-depth discussions on the lack of infrastructure, transportation, and customs clearance facilities in Balochistan’s border regions, and emphasized the need to facilitate local traders.
The committees also reviewed the ongoing anti-smuggling campaign and explored strategic responses to curb illegal trade.
Senator Mandviwalla underlined that smuggling remains a serious threat to the national economy and a major barrier to legitimate trade.
