Pak banks to restore business ties with Iran

Islamabad / DPA

The number of Koreans who travelled abroad reached a monthly high in January, according to figures from a government-run tourism agency.
Pakistani banks have been allowed to restore normal financial relations with Iran in the wake of lifting of ban on Tehran by the United Nations Security Council (UNSC).
The State Bank of Pakistan (SBP) issued on Thursday instructions to all banks and financial institutions in this regard.
“In line with the federal government’s decision to implement the UNSC Resolution dated July 20, 2015 regarding lifting of sanctions against Iran, the State Bank of Pakistan has communicated to banks/financial institutions that previous sanctions on Iran have been removed and normal business activities can be commenced within the scope of the resolution,” said the SBP.
Trade volume between Pakistan and Iran is negligibly small.
However, smuggling between the two countries has a significantly big size. Petroleum products are smuggled from Iran to Pakistan on a large scale while Iran-made consumer items have markets in Quetta and Karachi.
“Banks and Financial Institutions have been advised to remain mindful about the activities and persons who continue to remain on the UNSC list, as well as the currencies or financial systems which are
subject to certain restrictions,” said the SBP.
Recently, the Iranian currency has picked up price in the local currency market which was a direct impact of lifting of sanctions on Iran. It is believed that thousands of people who visit Iran each year would benefit after the SBP’s permission for banks and FIs to do business with Iran.
“It is expected that the lifting of sanctions and restoration of banking channels between Pakistan and Iran would revive normal trade and business activities between the two neighbours,” said the SBP.