Lahore, the capital of Pakistan’s Punjab Province, hosted an event dubbed “Pak-Iran Business Expo 2022, Barter Exchange Initiative” from May 24 to 26.
Managers and industrialists from 16 Iranian companies as well as business owners and traders active in a host of fields, including dairy, steel products, cooking and bakery machinery and equipment, toiletries, furniture, food, apparel, stones, mine excavation, automotive spare parts and telecommunication devices, participated in the event, IRNA reported.
Officials from Iran’s Consulate, Zahedan Chamber of Commerce, Industries, Mines and Agriculture, Lahore’s Chamber of Commerce, Iran’s Embassy in Pakistan and others from the two countries’ public and private sectors were also present.
The inauguration of the three-day fair was held at Lahore’s Pearl Continental Hotel.
On the sidelines of the event, Iran’s Consul General in Lahore Mohammad Reza Nazeri said the two countries are planning to hold expert-level meetings to discuss ways of conducting barter trade for facilitating trade exchanges between the two neighboring states.
“As Pakistan and Iran enjoy vast joint borders, the two sides are keen on increasing the number of border crossings and enhance interactions between governmental bodies and private sectors for boosting bilateral trade and collaborations in different economic sectors,” Iran’s Trade Attaché Hossein Amini said.
Atif Munir Sheikh, president of the Faisalabad Chamber of Commerce and Industry said the main objective of this expo is to promote barter trade between Pakistan and Iran. He noted that it is an important opportunity for Pakistani industrialists to boost their exports to the neighboring country.
Pakistan’s government recently notified procedures to launch barter trade with Iran, announcing that the trade would be settled on net-off basis, The News International reported.
The customs office would introduce a Special Goods Declaration code, namely BT for barter trade in WeBoC to record transactions and keep accounts, Ministry of Commerce said.
The ministry disclosed the action plan for barter trade between Pakistan and Iran for a first through Quetta Chamber of Commerce and Industry (QCCI) and Zahedan Chamber of Commerce and Industry (ZCCI) in Iran.
The notification said QCCI would establish a barter trade cell for documentation and monitoring, and open a bank account for domestic payments in Pakistani rupees against bartered goods. It will also register exporters and importers for barter trade.
Export would be based on a permit issued by QCCI, which specified the volume and value of goods. A confirmation that sufficient funds equivalent to value of export are available in the QCCI bank account for barter trade will also be required.
QCCI will make payment to Pakistani exporters in local currency on confirmation from ZCCI of receiving goods.
Similarly, import would be based on a QCCI permit specifying the volume and value of goods. Copies of export and import permits would be shared by QCCI with the customs office.
The value of goods bartered would be settled in Pakistan’s rupees. QCCI would mention “Declared Value” in WeBoC data and the customs office would share BT Data on a monthly basis with QCCI, it added.
Business chambers of both sides would collate barter trade stats and volume on a quarterly basis to determine any outstanding amount, which could be netted off through import/export of goods, or any other means.
QCCI would also formulate a barter trade dispute resolution mechanism in consultation with ZCCI.
Pakistan’s government would have no liability from the barter trade and QCCI could charge a minimum fee for services provided.
