In a bid to revitalize cross-border commerce, the Senate’s Joint Committee on Commerce, Finance, and Revenue on Wednesday proposed significant changes to the Barter Trade Mechanism 2023, aiming to stimulate legitimate trade between Pakistan and Iran through Balochistan.

The committee, led by Senator Anusha Rahman and Senator Saleem Mandviwala, examined existing obstacles under SRO 642(1)/2023 and urged the Ministry of Commerce to address procedural roadblocks hindering the exchange of commodities across the border.

A key proposal involves simplifying digital requirements for traders in remote locations. While customs registration via the Pakistan Single Window (PSW) and WeBOC would continue, manual data submission would be permitted for those lacking reliable internet access.

The panel advocated revising the 90-day net-off rule, which requires import-export equilibrium within a set timeframe. It suggested Customs independently evaluate and document transaction amounts for smoother processing.

The existing valuation system, including pre-set values and automatic WeBOC debits, was also criticized for its disconnect with market realities. The committee advised Customs to partner with local commerce chambers and merchants to develop a more practical, market-reflective valuation methodology.

Another significant recommendation was extending barter trade authorization from one to three years, giving enterprises more execution time and lessening administrative burdens. To ensure equity, any curtailment of authorization by the Regulatory Collector would require clear justification. The penalty framework, deemed excessively stringent, would see non-compliance addressed through hearings and conflict resolution rather than immediate penalties.

Recognizing varying international sanctions, the committee suggested separate barter trade frameworks for Iran, Afghanistan, and Russia. The existing SRO would be modified specifically for Iran.

The committee also greenlit three immediate SRO amendments: removing the restricted list of exportable/importable items to align with the Export/Import Policy Orders; allowing independent import and export transactions; and enabling multiparty contracts like consortiums to foster collective private sector participation.

These initiatives seek to enhance legal trade, encourage private sector engagement, and fuel economic progress in Balochistan, while strengthening Pakistan’s commercial ties with Iran. The Ministry of Commerce was instructed to begin the amendment process promptly, reflecting the committee’s commitment to a modern, inclusive, and effective barter trade system.