Wathra meets banks CEO discuss banking channels with Iran

KARACHI: In the backdrop of lifting of sanctions against Iran, State Bank of Pakistan called a special meeting of all banks/ FIs today the 14th of March 2016 to discuss the progress made by the banking side for facilitating trade transactions with Iran. The meeting, chaired by the Executive Director-BPRG, was attended by senior bankers from the banking industry. It may be recalled here that in line with the Federal Government's decision regarding lifting of sanctions against Iran, State Bank of Pakistan advised all banks on February 25, 2016 that normal business activities can be started with Iran as per UN Resolution and Notification of the Federal Government on removal of sanctions against Iran. The participants discussed the issues related to international sanctions and deliberated on future course of action. SBP provided general guidance on trade with Iran in the post sanctions milieu while keeping in view the residual sanctions and clarified points raised by banks. The banks were emphasized to take immediate measures for updating their policies, procedures, systems and controls, restoration of communication channels and agreements with their counterparts in Iran for early recovery of normal trade and business activities. Given the geographical proximity and economic affinity between Pakistan and Iran, it is expected that restoration of banking channels would result in the revival of normal trade and business activities between the two neighbors.