Pakistan, Iran to launch barter trade mechanism soon: Iran Envoy

KARACHI: Pakistan’s Ambassador to Iran, Muhammad Mudassir Tipu, has announced that a long-awaited barter trade mechanism between Pakistan and Iran will soon be operational, marking a major step toward boosting bilateral commerce amid financial and banking constraints.
In a statement on Monday, the ambassador confirmed that both countries have accelerated efforts to implement the Pakistan-Iran Free Trade Agreement (FTA), a development he described as “highly encouraging” for unlocking the full economic potential of the two neighbours.
Mudassir Tipu said recent bilateral engagements had produced “promising progress,” adding that the barter arrangement would allow both sides to exchange essential goods without relying on dollar-based transactions, a significant advantage in the current global economic environment.
He further revealed that a 12-member Iranian delegation is set to visit Pakistan later this month to participate in the International Agribusiness and Food Industry Exhibition, scheduled to begin on November 25 in Karachi. The delegation will be accompanied by Pakistan’s commercial and investment attaché, signaling Islamabad’s intention to strengthen direct business linkages.
Officials believe the barter initiative will help expand trade in sectors such as agriculture, food processing, energy, textiles, and pharmaceuticals – areas where both countries see substantial potential for growth. Pakistan’s exports to Iran remain far below capacity, largely due to sanctions-related restrictions and limited banking channels.
Diplomatic sources said the move reflects Pakistan’s broader strategy to enhance regional economic integration, diversify trade partners, and support non-traditional export markets.
The ambassador expressed confidence that with the FTA process gaining momentum and the barter system nearing completion, Pakistan-Iran trade could enter a new era of practical and sustained cooperation.