Pakistan’s top economic body amends barter trade mechanism with Afghanistan, Iran, Russia

Pakistan's Finance Minister Muhammad Aurangzeb (fourth-left) chairing a meeting of Economic Coordination Committee in Islamabad, Pakistan, on October 2, 2025. (Finance Division)
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Updated 02 October 2025
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Pakistan’s top economic body amends barter trade mechanism with Afghanistan, Iran, Russia

  • Barter mechanism helps Pakistan save dollars, secure imports from sanctioned countries
  • ECC also reviewed financial support proposal for New York’s Roosevelt Hotel owned by PIA

KARACHI: Pakistan’s Economic Coordination Committee (ECC) on Thursday approved amendments to a barter trade mechanism with Afghanistan, Iran and Russia, in a move aimed at facilitating direct business-to-business exchanges with the three countries.

The decision came at an ECC meeting chaired by Finance Minister Muhammad Aurangzeb, which also cleared a series of supplementary grants and considered a financial support proposal for the Roosevelt Hotel in New York owned by Pakistan International Airlines.

“The ECC approved a draft Statutory Regulatory Order (SRO) as proposed by the Ministry of Commerce, aimed at amending the Business-to-Business Barter Trade Mechanism governing bilateral trade with Afghanistan, Iran, and Russia,” the finance division said in a statement.

Pakistan has maintained barter trade arrangements with these countries not only to ease pressure on its dollar reserves and maintain access to essential imports but also because both Iran and Russia face Western sanctions, with formal banking channels restricted and making it difficult to settle payments in hard currency.

Barter trade provides a practical workaround by allowing Pakistan to exchange goods directly, such as rice, textiles and surgical equipment, in return for oil, wheat, fertilizers and machinery.

The arrangement also works with Afghanistan, a key overland trade route and source of basic commodities like coal, fruits and vegetables.

The ECC also considered a summary from the interior ministry regarding financial support in the form of a technical supplementary grant (TSG) to the Roosevelt Hotel in New York, following the termination of its lease agreement with New York City.

The hotel, a century-old Manhattan property, is considered one of the country’s most valuable foreign assets that the government has been striving to privatize, with interested international consortia submitting their bids last month to advise the government on the process.


Return of millions of Afghans from Pakistan and Iran pushes Afghanistan to the brink, UN warns

Updated 14 February 2026
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Return of millions of Afghans from Pakistan and Iran pushes Afghanistan to the brink, UN warns

  • Afghan authorities provide care packages for those returning that include food aid, cash, a telephone SIM card and transportation
  • But the returns have strained resources in a country struggling with a weak economy, severe drought and two devastating earthquakes

GENEVA: The return of millions of Afghans from neighboring Pakistan and Iran is pushing Afghanistan to the brink, the U.N. refugee agency said on Friday, describing an unprecedented scale of returns.

A total of 5.4 million people have returned to Afghanistan since October 2023, mostly from the two neighboring countries, UNHCR’s Afghanistan representative Arafat Jamal said, speaking to a U.N. briefing in Geneva via video link from Kabul, the Afghan capital.

“This is massive, and the speed and scale of these returns has pushed Afghanistan nearly to the brink,” Jamal said.

Pakistan launched a sweeping crackdown in Oct. 2023 to expel migrants without documents, urging those in the country to leave of their own accord to avoid arrest and forcible deportation and forcibly expelling others. Iran also began a crackdown on migrants at around the same time.

Since then, millions have streamed across the border into Afghanistan, including people who were born in Pakistan decades ago and had built lives and created businesses there.

Last year alone, 2.9 million people returned to Afghanistan, Jamal said, noting it was “the largest number of returns that we have witnessed to any single country.”

Afghanistan’s Taliban rulers have criticized the mass expulsions.

Afghanistan was already struggling with a dire humanitarian situation and a poor human rights record, particularly relating to women and girls, and the massive influx of people amounting to 12% of the population has put the country under severe strain, Jamal said.

Already in just the month and a half since the start of this year, about 150,000 people had returned to Afghanistan, he added.

Afghan authorities provide care packages for those returning that include some food aid, cash, a telephone SIM card and transportation to parts of the country where they might have family. But the returns have strained resources in a country that was already struggling to cope with a weak economy and the effects of a severe drought and two devastating earthquakes.

In November, the U.N. development program said nine out of 10 families in areas of Afghanistan with high rates of return were resorting to what are known as negative coping mechanisms — either skipping meals, falling into debt or selling their belongings to survive.

“We are deeply concerned about the sustainability of these returns,” Jamal said, noting that while 5% of those who return say they will leave Afghanistan again, more than 10% say they know of someone who has already left.

“These decisions, I would underscore, to undertake dangerous journeys, are not driven by a lack of a desire to remain in the country, on the contrary, but the reality that many are unable to rebuild their viable and dignified lives,” he said.