Bureaucratic delays plague barter trade with Iran

Senators direct ministries to protect traders, comply with international obligations

ISLAMABAD:

The Senate Standing Committee on Commerce has noted that traders are facing problems under the current barter trade arrangement with Iran, particularly due to bureaucratic delays in relation to the SRO 642(1)/2023.

The Senate body, which met on Thursday, directed officials that the barter trade framework should be facilitative and promote business-to-business transactions under clear conditions. It urged the Ministry of Commerce to coordinate with the Ministry of Foreign Affairs, the Federal Board of Revenue and the Law Division to finalise amendments that could protect traders' interest while ensuring compliance with international obligations. Chaired by Senator Anusha Rahman, the standing committee also expressed concern over delay in opening Badini border with Afghanistan despite commitments from the Ministry of Commerce to open it by September 12.

The crossing, inaugurated in September 2020, became non-functional after 10 months of its opening due to poor road conditions, the lack of basic amenities and inadequate support from the Afghan side. The committee underscored the need for fast-tracking the 40km road project and improving coordination among the Ministry of Commerce, the Ministry of Interior and the government of Balochistan.

It was stressed that a focal person be appointed to monitor progress, while all relevant stakeholders be engaged in the proposed meeting on September 18. The committee emphasised that parallel efforts must be made by the Afghan side and proposed a visit to the border later in the current month.

During deliberations on opening chambers of commerce of foreign countries, the standing committee was informed that while many countries operate well-established chambers to facilitate their business communities, Pakistan's system remains weak. The process suffers from bureaucratic hurdles, the lack of clear protocols and outdated policies. It noted delays in processing applications, unaddressed deficiencies in pending cases and inactivity of some of the chambers for long periods. The Senate body underlined the importance of streamlining procedures, appointing focal persons and aligning with successful international models.

It was directed that policies be reviewed to allow the reciprocal establishment of chambers, ensure embassy-based verification instead of an NOC and engage the trade officers posted abroad to lobby for Pakistan's chambers of commerce. A revised policy framework was sought by early October to provide clarity, remove ambiguities and strengthen international trade facilitation to achieve the set goals.

The committee also reviewed memoranda of understanding (MoUs) and protocols and called for establishing implementation mechanisms to ensure that the agreements were translated into tangible outcomes. It was apprised that a list of 148 companies had been shared with the Board of Investment for follow-up, which would directly engage with the companies and monitor progress.