KARACHI: The Union of Small and Medium Enterprises (UNISAME) held a meeting with Barter Call operated by SCUK International based in Glasgow to promote barter trade between Pakistani exporters and global buyers.
President UNISAME Zulfikar Thaver welcomed Mustafa Ahmed country head of Barter Call and his team. He thanked him for his deep interest in promoting barter trade for the benefit of all sectors in Pakistan. He requested the country head of Barter Call to especially focus on mini barter trade for SME exporters of rice, pulses, wheat, maize, sugar, spices, commodities and general merchandise items between Pakistani exporters and importers and third world countries.
Mustafa Ahmed explained the salient features to the participants. He said this is one of the first online market based portal for C2C and B2B entrepreneurs desiring barter trade. This portal aims to connect individuals and enterprises to utilize alternative mode of trade where values are exchanged instead of currencies.
Due to slowdown in commodity market business has suffered and barter becomes an alternative exchange to meet one another’s requirements by exporting and importing one another’s goods. Especially when the banks are declining to open Letter of Credits to finance commodities due to slowdown.
He stated that in India there are issues of surplus sugar which is being sold in India at Rs 22 per kilogram but in international market the price is about Rs 20 per kg and the matter of barter is being considered to dispose off surplus stock. They have almost 4 million tons which is surplus for export.
He pointed out that 65% of Fortune 500 Companies engage in barter in one form or another. 65% of corporations listed on the NYSE use barter. The U.S. Department of Commerce estimates that 20-25% of world trade is barter. Corporate barter is a $20+ billion worldwide industry. Globally, over 470,000 businesses of all types are use barter.
Considering this trend Mustafa Ahmed said Pakistani entrepreneurs need to enter into barter trades to sell their surplus commodities in international markets through healthy barter trade.