Khaqan Najeeb, a former advisor to Ministry of Finance, said it is hoped the barter trade mechanism would help the economy.
Shops closed in Peshwar. Pic/Getty Images
In another step to release pressures on dwindling foreign exchange reserves, Pakistan has opened up barter trade with Afghanistan, Iran and Russia for certain items including petroleum, LNG, coal, wheat, pulses, minerals, metals, and several food items.
At a time when the CPI (Consumer Price Index) touched 38 per cent and Sensitive Price Indicator (SPI) based inflation clocked to 48 per cent, Pakistan took a decision to allow barter trade with neighbouring countries, in the wake of the IMF not coming up to rescue ailing economy of the country.
Sources said that the barter trade would help overcome banking transactions because, in the case of Iran, there was no possibility of transactions through official channels because of the economic sanction imposed by the US. Khaqan Najeeb, a former advisor to Ministry of Finance, said it is hoped the barter trade mechanism would help the economy.
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