Senate panel criticizes bureaucratic delays in barter trade, border issues with Iran and Afghanistan

The Senate Standing Committee on Commerce on Thursday expressed concerns regarding the challenges faced by traders under the current barter trade arrangement with Iran. These issues stem from bureaucratic delays, particularly those related to SRO 642(1)/2023, and the lack of preparedness by the Ministry of Commerce regarding the opening of the Badini border crossing with Afghanistan.

Chaired by Senator Anusha Rahman, the committee sharply criticized the Ministry of Commerce’s inaction on vital issues, including the delays in issuing a revised notification for barter trade with Iran. 

The committee emphasized the need for a facilitative barter trade framework that supports business-to-business transactions under clear and defined conditions. It directed the Ministry of Commerce to coordinate with the Ministry of Foreign Affairs, the Federal Board of Revenue, and the Law Division to expedite amendments and protect traders’ interests while ensuring compliance with international obligations.

In a separate discussion, the committee raised concerns about the delay in opening the Badini crossing with Afghanistan, despite previous commitments from the Ministry of Commerce to open it by September 12. 

The border crossing, which was inaugurated in September 2020, became non-functional after 10 months due to poor road conditions, lack of basic amenities, and insufficient cooperation from the Afghan side. 

The committee called for fast-tracking the 40-kilometer road project and improving coordination between the Ministry of Commerce, Ministry of Interior, and the government of Balochistan. A focal person will be appointed to monitor progress, and a meeting with relevant stakeholders will take place on September 18.

Further, the committee reviewed the functioning of Pakistan’s foreign chambers of commerce. While several countries have well-established chambers to facilitate their business communities, Pakistan’s system is hindered by bureaucratic hurdles, unclear protocols, and outdated policies. 

The committee urged the government to streamline the application process, appoint focal persons, and align with successful international models. The committee also proposed reviewing policies to allow reciprocal establishment of chambers and to engage trade officers abroad to advocate for Pakistan’s chambers of commerce. A revised policy framework is expected by early October.

Additionally, the committee reviewed memoranda of understanding (MoUs) and protocols, calling for the creation of implementation mechanisms to ensure that agreements translate into tangible outcomes. A list of 148 companies has been shared with the Board of Investment, which will follow up with the companies and monitor progress.