The State Bank of Pakistan (SBP) Monday emphasised the need to take immediate measures for updating their policies, procedures, systems and controls and restoring communication channels and agreements with their counterparts in Iran for early recovery of normal trade and business activities.
In the backdrop of lifting of sanctions against Iran, SBP called a special meeting of all the banks and other financial institutions to discuss the progress made by the banking side for facilitating trade transactions with Iran. The meeting, chaired by the BPRG executive director, was attended by senior bankers from the banking industry.
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 neighbours.
In line with the federal government’s decision regarding lifting of sanctions against Iran, SBP advised banks on February 25 that normal business activities can be started with Iran as per the UN resolution and the notification of the federal government on removal of sanctions against Iran.
The participants discussed issues related to international sanctions and deliberated on a future course of action. The SBP also provided general guidance on trade with Iran in the post sanctions milieu while keeping in view the residual sanctions and clarified points raised by the banks.