Pak-Iran trade: Ministry seeks help in resumption of transactions

Ministry asks SBP and private banks to form consortium to resolve the matter

ISLAMABAD: The Ministry of Commerce has asked the central bank and private banks to come up with a mechanism that would allow banking transactions between Pakistan and Iran to be resumed.

Despite the lifting of sanctions on Iran, trade between the two countries is still affected by a lack of mechanism that would allow banking transactions.



“We have asked the State Bank of Pakistan and private banks to develop a consortium for evolving a mechanism as sanctions on banking transactions are still there from the international community,” said Commerce Minister Khurram Dastgir while talking to The Express Tribune here on Thursday.

He said that the ministry had convened a special meeting recently in Islamabad and had invited representatives of State Bank of Pakistan and private banks, who have complained that banking channels are still facing difficulties. “The private banks have particularly expressed the concern that they are facing challenges in opening LCs in dollars and even in euros with Iran,” said Dastigir.

The minister added that the aforementioned mechanism would aid traders in opening their LCs to trade with Iranian businessmen.

He said that many steps have been taken to jack up bilateral trade with Iran and in this regard a five-year bilateral trade roadmap has also been developed and the document was given to the Iranian delegation on their visit in March.



Besides, the minister said that initial draft for the proposed Pakistan-Iran Free Trade Agreement (FTA) has also been handed over to the Iranian authorities to see and give their inputs. He said that since Iran is not the member of WTO, any agreement with Iran will be made keeping that in view.

Besides, the minister said that to improve the bilateral trade and investment, the two countries have committed various steps including frequent holding of trade fairs and exhibitions in each other’s countries.

Dastgir mentioned that Pakistan will soon hold a single-country exhibition in Iran, whose dates are to be finalised after consulting the Iranian authorities.

 

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

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