Banks di­rected to fur­nish pro­posal on trans­ac­tion fa­cil­i­ta­tion for trade with Iran

Pakistan Observer - - ECONOMY WATCH -

Cur­rency Sell­ing Buy­ing

MIAN AR­SHAD IS­LAM­ABAD—Min­istry of Com­merce (MoC), Tues­day, di­rected the rep­re­sen­ta­tives of banks to fur­nish vi­able pro­pos­als for the fa­cil­i­ta­tion of bank­ing trans­ac­tions for trade with Iran within a month. Pakistan is search­ing for ways and means to ini­ti­ate trade with Iran in a big way de­spite that sev­eral im­ped­i­ments per­sists af­ter the lift­ing of sanc­tions from Iran. Rep­re­sen­ta­tives of Pak­istani pri­vate banks vis­ited Iran few months ago and re­port a great en­thu­si­asm in Iran re­gard­ing trade with Pakistan.

SBP and Cen­tral Bank of Iran signed a Let­ter of In­tent on the oc­ca­sion of visit of Ira­nian Pres­i­dent to Pakistan for en­hanc­ing mu­tual co­op­er­a­tion and es­tab­lish­ing di­rect bank­ing links. In this re­gard, Min­is­ter for Com­merce Engr. Khur­ram Dast­gir Khan held a meet­ing with State Bank of Pakistan (SBP) and pri­vate banks to ex­plore the bank­ing chan­nels avail­able for trade with post-sanc­tion Iran. The meet­ing was in­formed that de­spite alle­vi­a­tion of in­ter­na­tional sanc­tions from Iran, pri­vate banks are re­luc­tant to es­tab­lish di­rect bank­ing chan­nels with Iran.

The ab­sence of bank­ing links be­cause of the re­fusal of in­ter­na­tional banks to sup­port trans­ac­tions with Iran proved to be the prime rea­son for Pakistan’s trade not to get the much-ex­pected boost from trade with Iran. Pak­istani traders sense great op­por­tu­ni­ties of ex­port right next door with min­i­mal trans­porta­tion cost es­pe­cially that of Bas­mati rice which used to fetch mil­lions of dol­lars from the pre-sanc­tion Iran. Pak-Iran trade which was over one bil­lion dol­lars now stands at US $ 270 mil­lion be­cause of the in­ter­na­tional sanc­tions.

Min­istry of Com­merce is ex­ten­sively en­gaged with the Min­istry of Trade and In­dus­try and Min­istry of Agri­cul­ture of Iran to op­er­a­tional­ize the Pref­er­en­tial Trade Agree­ment and en­hance trade fa­cil­i­ta­tion at the bor­der. Dast­gir re­cently paid a visit to Pak-Iran bor­der at Taf­tan and in­spected the fa­cil­i­ties avail­able for smooth move­ment of ve­hi­cles trad­ing across the bor­der and promised to up­grade the in­fra­struc­ture. As per the 5-Years Eco­nomic En­gage­ment Plan agreed be­tween Pakistan and Iran, the Min­istry of Com­merce of Pakistan has for­warded the draft FTA frame­work agree­ment to Iran this month. The re­sponse of Iran is awaited on this.

IS­LAM­ABAD: Fed­eral Min­is­ter for Com­merce Engr. Khur­ram Dast­gir Khan chair­ing a meet­ing with State Bank of Pakistan and Pri­vate Banks to dis­cuss Bank­ing chan­nels for trade with Iran.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.