BUSINESS-TO-BUSINESS (B2B) BARTER TRADE MECHANISM 2023 - ECONOMY
News: Pakistan to engage in barter trade
What is in the news?
● Pakistan
has passed a special order to allow barter trade with Afghanistan, Iran and Russia for certain goods.
Key takeaways from the news:
● Goods
including petroleum and natural gas
are covered under this
● The
order is called the Business-to-Business
(B2B) Barter Trade Mechanism 2023.
● State
and privately owned entities would need approval to participate in the trade
mechanism.
● Pakistan
could gain particularly from oil and energy imports from Russia and Iran without adding to dollar demand.
● He
added that the barter opportunity is important considering the dollar shortages
the countries face.
● In
April, Pakistan made its first purchase of discounted Russian oil. However,
there was no confirmation about the mode of payment.