Barter trade!! Finally Iran Agreed to spur its trade with PakistanBy Sobia Raja • Aug 10th, 2012 • Category: Politics • One Response
Centuries ago barter trade was quite famous trade, but with the passage of time it obsoleted at larger scale. But now it seems its taking its place back. Iran and Pakistan finally realized the facts are now agreed for this barter trade. The Economic Coordination Committee of Cabinet (ECC) on Tuesday approved that Pakistan will Exchange its wheat with Iran on barter trade system and in return will get pig Iron and fertilizers. Food demands are increasing with increasing population. And this year Pakistan with the blessings of ALLAH got good yield of wheat. So country is in condition to export it to Iran. Improved fertilizers in return will benefit Pakistan for Rabi crops 2012-13.
This barter trade is quite bold decision by both the nations, as in Pakistan there is 20 million of surplus wheat in Pakistan, so it’s better to take benefit from it, as in return Pakistan will get urea and Pig Iron from Iran. Economic Coordination Committee of Cabinet (ECC) also allowed exporting 30000 tons of sugar to Tajikistan on govt. basis, this never ends here ECC also approved a contract to import furnace oil by PSO. Short and long liquefied natural gas (LNS) also approved for import. Further details will be discussed soon regarding the trade. ECC has notified the relevant Ministries for calculations, and soon trade will be started between the countries. International trade policies and other restrictions always cause hurt for countries, so its better to decide trade in different ways.
Interestingly when these trades will proceed new doors will open for more trade. This will not only strengthen the relationship of two nations but would also be able to get benefits at equal ties. In my point of view this barter trade is good decision, as in international trade when we import something it simply hurts our Balance of payments, as it is reported that we do not have sufficient reserves, so it’s really great decision at this time.