Trade with Iran: SBP reviews progress made by banks

Encourages banks to update policies, restore communication links

KARACHI: In the backdrop of lifting of sanctions against Iran, the State Bank of Pakistan (SBP) called a special meeting of all banks and financial institutions on Monday to discuss the progress made by the banking sector for facilitating trade transactions with Iran.

The meeting, chaired by the executive director of Banking Policy and Regulation Group of the SBP, was attended by senior bankers from the banking industry, says a press release.

In line with the federal government’s decision after the lifting of sanctions against Iran, the SBP had advised all banks on February 25 that normal business activities could be started with Iran as per the United Nations resolution and a notification of the federal government on removal of sanctions.

The meeting participants discussed the issues related to international restrictions and the future course of action.

The SBP provided general guidance on trade with Iran in the post-sanctions milieu while keeping in view the remaining curbs and clarified the points raised by banks.

The banks were encouraged to take immediate measures for updating their policies, procedures, systems and controls, restoration of communication channels and agreements with their counterparts in Iran for the early resumption of normal trade and business activities.

Given the geographical proximity and economic affinity between Pakistan and Iran, it is expected that the restoration of banking channels would result in revival of normal trade between the two neighbours.

Published in The Express Tribune, March 15^th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.