Envoy: Pakistan, Iran near deal on barter trade mechanism
Pakistan’s Ambassador to Iran, Muhammad Mudassir Tipu, announced on Monday at a press briefing that the two countries have finalized a legal framework for a barter trade mechanism, signaling a significant step to boost bilateral commerce.
“Recently, a legal framework for the barter trade mechanism has been finalized and will be implemented,” Mudassir Tipu said. “This is a major development that will expand trade in multiple sectors,” he added.
He noted that the mechanism will eliminate financial transactions between the two countries, a measure specifically requested by Iran to enhance cross-border barter.
While noting that negotiations on barter exchanges are ongoing, the envoy said he plans to meet with Iranian officials to review and finalize the barter trade mechanism.
On the operational details, Tipu said while general guidelines are in place, discussions are still ongoing about the implementation process and the specific goods to be traded, with decisions to be finalized by the business community.
In addition to barter trade, Pakistan and Iran are in the final stages of signing a free trade agreement, according to the Pakistani official.
He referred to a joint conference held last week in Pakistan, attended by Iran’s Roads and Urban Development Minister Farzaneh Sadeq, which resulted in an agreement to reopen the transit route linking Pakistan, Iran, and Turkey.
During President Masoud Pezeshkian’s visit to the Pakistani capital earlier in August, a $10 billion bilateral trade target was agreed between Tehran and Islamabad.
Last year, bilateral trade reached $3.129 billion, with $2.423 billion in Iranian exports to Pakistan and $700 million in Pakistani exports to Iran.