Amid persistent challenges in operationalizing barter agreements with countries such as Russia, Iran, and Afghanistan, a Karachi-based technology company has introduced a digital framework aimed at overhauling Pakistan’s barter trade mechanism.
Galaxefi Solutions, a private tech firm specializing in digital freight workflows, has developed a national-level system called BARTMAS, Barter Trade Management System. The initiative seeks to bring transparency, efficiency, and coordination to barter-based transactions, a necessity for Pakistan given its limited banking relations with several trading partners due to sanctions and geopolitical constraints.
Founder and CEO of Galaxefi, Asif Pervez, said the system is designed to move the country away from outdated manual processes that have made barter trade vulnerable to inefficiencies, mismanagement, and policy blind spots. “Barter trade doesn’t have to be broken,” he remarked. “We just have to stop guessing and start measuring, digitally, transparently, and in real time.”
BARTMAS aims to integrate all key national institutions through digital APIs, including the Pakistan Single Window (PSW), Federal Board of Revenue (FBR), Ministry of Commerce (MoC), National Logistics Cell (NLC), State Bank of Pakistan (SBP), and other authorities. The proposed digital infrastructure will enable end-to-end visibility of the barter journey from the initiation of a barter request and customs clearance to escrow fund management and bonded warehousing, ensuring that each step is auditable and centrally traceable.
According to Galaxefi, the process begins with barter requests initiated through a secure online dashboard, followed by real-time inventory checks to prevent domestic shortages. Contracts would be verified in coordination with regional chambers of commerce, such as the Quetta and Zahidan Chambers. Goods declarations would be filed digitally through PSW using a dedicated barter trade route. Licensed banks would manage escrow services under the supervision of the SBP, while cargo movement would be handled by the NLC under TIR protocols, with the entire logistics chain sealed and monitored for security. A blockchain-powered audit trail would underpin the system, ensuring transparency at every step.
The digital framework has already been presented to relevant trade and institutional bodies, with discussions underway regarding potential adoption. Galaxefi is also working in coordination with PSW and the Pakistan International Freight Forwarders Association (PIFFA) to align its technology with national logistics and customs frameworks.
The need for such a system is underscored by the alarming failures of recent barter arrangements, most notably the 2023–24 wheat trade debacle. In that case, barter-related mismanagement resulted in estimated losses of Rs 484 billion to farmers and the federal government within a single year. During the same period, food poverty increased from 34 percent to 39.4 percent, pushing over 12 million people into hardship. Despite a domestic wheat surplus, the government imported the commodity at a cost exceeding $1 billion, further fuelling inflation, which peaked at 38 percent.
Experts say these failures are symptomatic of a broader structural issue, barter trade in Pakistan continues to rely on manual approvals, fragmented record-keeping, and outdated verification mechanisms. Multiple Standard Regulatory Orders (SROs) by the Ministry of Commerce have failed to establish cohesion among key stakeholders, including customs, the FBR, SBP, and border security agencies. This has led to overlapping shipments, oversupply of certain commodities, and national shortages of others.
In such a context, Galaxefi’s BARTMAS framework offers more than just a technological solution, it presents a comprehensive policy model that could fundamentally reshape how Pakistan engages in barter trade. As Pervez puts it, “A system that can break millions must be rebuilt with millions in mind.”
With inflation high, food insecurity deepening, and international scrutiny increasing, the case for digital reform in trade management is no longer optional. The real question now is whether the government is ready to implement the tools already available and take the bold steps needed to protect the country’s economic and food security.
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