Pakistan has announced a new Statutory Regulatory Order (SRO) aimed at expanding barter trade with Iran, a move expected to strengthen economic ties between the two neighboring countries.

The announcement was made by Muhammad Mudassir Tipu, Pakistan’s ambassador to Tehran, in a post on his official X account on Sunday. He noted that the new SRO was issued by the government of Prime Minister Shehbaz Sharif following “an exhaustive process of deliberations.”

I am delighted to share that Pakistan has issued a new SRO aimed at promoting barter trade between Pakistan and Iran. After an exaustive process of deliberations- many concerns of business community of both Iran and Pakistan have been taken into account and addressed in the new… pic.twitter.com/5Z6iQlNWQd

— Ambassador Mudassir (@AmbMudassir) October 19, 2025

The ambassador stated that the order takes into account the concerns of the business communities in both Iran and Pakistan, and is designed to facilitate smoother and more effective bilateral trade.

“This SRO will substantially elevate trade and diversify its base,” Tipu said, urging industrialists and business entrepreneurs to take full advantage of the revised mechanism.

Tipu also called on the Chambers of Commerce and Industries of both countries, as well as key trade bodies, to disseminate the guidelines to their members. He emphasized that broader awareness of the order will enable stakeholders to benefit from the “mutually-beneficial trade dividends."

Revised B2B mechanism seeks mutually beneficial outcomes

In a press release, Pakistan’s Ministry of Information and Broadcasting quoted the ambassador as saying that the Business to Business (B2B) Barter Trade Mechanism, 2023 SRO, has been amended to better support trade with Iran. The revised mechanism is expected to improve the operational efficiency of barter trade transactions, which serve as a key tool for bypassing financial restrictions due to sanctions.

The new directive follows recent approvals from Pakistan's Ministry of Finance and cabinet, which endorsed the revised barter trade plan as proposed by the Ministry of Commerce and ratified by the Economic Coordination Committee. The expanded trade arrangement comes amid a growing push by both Tehran and Islamabad to strengthen economic cooperation and reduce dependency on conventional international payment systems.

Iran–Pakistan Joint Economic Cooperation Commission

On a related note, earlier this year, in September, the 22nd session of the Iran–Pakistan Joint Economic Cooperation Commission was scheduled for September 15-16 in Tehran, with Pakistani Commerce Minister Jam Kamal Khan leading the delegation.

Khan arrived in the Iranian capital for a three-day visit aimed at strengthening economic and trade ties. He chaired the Joint Economic Commission and co-chaired the Pakistan-Iran Joint Business Forum, according to Pakistan’s Commerce Ministry.

"During the visit, [Khan] will lead the 22nd Session of the Pakistan-Iran Joint Economic Commission and co-chair the Pakistan-Iran Joint Business Forum. He is also scheduled to hold meetings with key Iranian ministers and senior officials to strengthen bilateral trade and investment cooperation," the ministry said in a statement.