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Is $10b Pak-Iran trade a pipe dream?
['Dr Ali Salman']
The Express Tribune
US sanctions and the absence of viable payment channels became major barriers to the expansion of formal trade.
To overcome payment-channel challenges, since 2023 Iran and Pakistan have been implementing a barter trade system under the "Business to Business Barter Trade Mechanism".
However, one should remember that barter trade can only serve as a stop-gap measure for formal trade.
In a way, barter trade belongs to the past, before the idea of comparative advantage prevailed and reshaped the direction of global trade.
The immediate challenge is to develop a roadmap for converting the target of $10 billion trade into concrete milestones and a credible pathway.