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Barter system – Pakistan to exchange rice for LPG from Iran

rice - Barter system - Pakistan to exchange rice for LPG from Iran

KARACHI: Pakistan would import liquefied petroleum gas (LPG) from Iran in exchange for rice under a barter arrangement endorsed by the two countries, Arab News cited a Pakistani government official.

“When we went to Iran what we talked about was the barter trade, almost all pieces of the jigsaw had been put in place,” Adviser to the Prime Minister on Commerce Abdul Razak Dawood said.

“We will export rice to Iran and import LPG from there, it is purely a barter deal. They [Iran] have agreed in principle and we have signed it [the memorandum of understanding],” he said, adding the barter trade would begin within a month or two.

Earlier this month, Pakistan and Iran held the 9th Joint Trade Committee (JTC) meeting in Tehran and resolved to take bilateral trade to $5 billion by 2023.

It is pertinent to mention that Iran faces sanctions imposed by the United States, making it difficult for global and regional countries to broaden and deepen their trade ties with the administration in Tehran.

 Responding to a question about the implications of trading with Iran when the Middle Eastern state was under US sanctions, Dawood said it was a private arrangement.

Dawood also noted the country’s exports were increasing by 30 percent, adding that more growth could still be achieved by adopting product and geographical diversification.

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