ISLAMABAD: The Senate Standing Committee on Commerce was informed on Wednesday that Pakistani banks were hesitant about issuance of financial instruments for doing trade with Afghanistan, Iran, and Russia.

Commerce Secretary Sauleh Farouqi while briefing the committee, headed by Zeeshan Khanzada, said that this reluctance on part of local banks had led to start of barter trade with these countries.

Mr Farouqi said the objective of barter trade is to promote trade by marginalising the role of financial institutions and shifting of informal trade to formal channels.

Calling it an initiative of the ministry of commerce and customs, he said that SRO 643 had notified the mechanism for barter trade. However, he stated, barter trade with these countries would be kept on a limited scale, adding that the Trade Development Authority of Pakistan would be taken on board on the matter.

He informed the meeting that there would be no change in the mechanism of taxes and duties for barter trade, adding that talks had already started between Afghan and Pakistani customs officials on the list of items for barter trade.

In reply to a question, the secretary said that at this stage barter trade was not being considered with China. “We have no banking issue as well as currency swap issue with China,” he added.

The official said the first priority for barter trade is Afghanistan, Iran and Russia, adding that most of the trade with China was done through shipping.

He said that in order to improve trade, Pakistan was providing transit route to several countries and was not charging the transit fee tax.

The Senate committee was briefed on the eligibility criteria for barter trade.

Lists of importable items from Afghanistan, Iran and Russia were tabled as was the list of exportable items from Pakistan which included edibles such as milk cream, eggs, cereals, meat, fish, fruit, vegetables, rice and confectionaries.

Salt and pharmaceutical products as well as essential oils, perfumes and cosmetics toiletries were also on the list.

Deputy Chairman Senate and member committee Mirza Afridi floated the idea of mango export and mango diplomacy. He stated that during his visit to China he had discussed the idea of holding a three-day mango festival in Urumqi, China, to showcase Pakistani mango varieties.

He told the meeting that a letter had been written to the ministries of commerce and finance, seeking their support and cooperation in this regard.

Published in Dawn, July 6th, 2023