No shipments have been made of wheat from Pakistan to Iran under a one million tonne barter deal, proposed in March last year and agreed in August 2012, as payment issues are still unresolved.

An initial consignment of 100,000 tonnes was due to be delivered to Iran in mid-Februarye.

There is still no shipping schedule and it appears no agreement on the deal at an inter-government level,” one trade source said.

Payment had been agreed for a reduced 35,000 tonnes of Pakistani wheat but this will not be shipped as the contract period has expired, the sources said.

The barter deal was to involve Iran exporting fertiliser and iron ore to Pakistan in exchange for wheat. But it has been deadlocked over price and quality.

In August 2012, Pakistan agreed a price of $300 per tonne for wheat. Current Pakistani wheat export prices are $10-$15 a tonne higher, traders said.