The MOC should pursue the CSA with Iran as due to sanctions the commercial banks are not issuing Form E for shipments to Iran although there is no sanction on food and medicines, said Zulfiqar Thaver. - File photo

Karachi: The Union of Small and Medium Enterprises (Unisame) appreciated the permission to export wheat to Iran under barter system and urged the Ministry of Commerce (MoC) to allow barter trade for the export of rice and other commodities as well. Unisame also urged the MOC to expedite the procedure for barter for wheat to enable commencement of business.

Unisame has drawn the attention of federal commerce minister Makhdoom Amin Fahim to the increase in smuggling between Iran and Pakistan due to absence of currency swap agreement (CSA) or barter for export of rice and other commodities and in return import of plastic granules of different grades and petroleum chemicals.

Pesident Unisame Zulfikar Thaver said despite the several request of the rice exporters to the MOC to arrange currency swap agreement with Iran the MOC has failed to conclude the CSA resulting in increase of smuggling of plastic granules from Iran which have flooded the markets.

The government is losing on sales tax, import duties and valuable foreign exchange which could have been saved by virtue of the CSA.

He urged the MOC to immediately first allow barter trade agreements between trade houses of Pakistan and Iran to enable the exporters and importers in both the countries enter into mini barters with the blessing of both the governments to promote and encourage healthy trade.

Secondly the MOC should pursue the CSA with Iran as due to sanctions the commercial banks are not issuing Form E for shipments to Iran although there is no sanction on food and medicines.