KARACHI: The two central banks of Pakistan and Iran are likely to sign agreement next week for opening banking channels to streamline trading activities between the two countries, Zubair Tufail, president, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Tuesday.
He said that in recent meeting with State Bank of Pakistan (SBP), the governor of the central bank had informed about the signing of the agreement with Iranian authorities for resuming formal banking channels. The SBP governor informed that almost all the formalities had been finalized.
Tufail said that the signing ceremony was scheduled for March 18 but due to New Year celebration in Iran the ceremony was rescheduled and Iranian authorities would visit next week.
He said after the signing of the agreement the formal trade through opening of Letter of Credit by banks in each country would be started.
FPCCI president said that the financial transactions halted due to sanctions imposed on Iran by the international community.
Prior to the sanctions on Iran the bilateral trade of Pakistan and Iran was $1.5 billion which was reduced to only $261 million during the last fiscal year. Tufail, however, hoped that the volume of $1.5 billion would be achieved in just one year i.e. 2017/2018. He further hoped that this volume would further increase to $3 billion in three to five years.
