The State Bank of Pakistan will soon select some Pakistani banks to facilitate bilateral trade with Iran to the level of US$ 5 billion in a year, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Tufail, told Business Recorder after his meeting with the Iranian Ambassador Mahdi Honar Doust on Thursday
It may be recalled that Pakistan and Iran signed Banking and Payment Arrangement (BPA) last month towards opening of banking channels between the two countries to provide a trade settlement mechanism for promoting bilateral trade. This mechanism will be used for the payment of trade conducted via letter of credit (L/Cs) and in accordance with international laws and regulations. In the next step, both the central banks will invite banks in their respective jurisdiction to act as authorized banks for undertaking trade transactions under the newly signed BPA.
Expressing satisfaction over his talks with the Iranian Ambassador as a follow up of the Iranian Foreign Minister's recent meeting with Prime Minister Muhammad Nawaz Sharif, the President FPCCI said we are pinning high hopes to the second round of FTA talks with Iran scheduled in July. He said despite many commonalities the volume of bilateral trade is unsatisfactory but resumption of the banking channels will boost trade to five billion dollars per annum as desired by Prime Minister Nawaz Sharif while meeting Iranian foreign minister.
Zubair Tufail said that business can bring people of both countries together and that Iran can become a major exporter of petroleum products to Pakistan. Pakistan can import quality pharmaceuticals and steel from Iran and export rice, meat, mutton, fruits and vegetables while chances of barter trade can also be explored. Zubair Tufail said that a delegation of FPCCI will visit Tehran soon to explore business opportunities and that both the governments should take steps to make business easy. He also called for improved air links as many Pakistani businessmen go to Iran through Dubai.
Iranian ambassador Mahdi Honar Doust assured the FPCCI that he would take up this matter with the Iranian airline that runs only one flight weekly to Pakistan. He noted that trade between Iran and Afghanistan was three times greater than Pak-Iran trade while now it is double that of Pak-Iran bilateral trade. He said that we want to improve trade relations and a monthly meeting will be held between representatives of FPCCI and the Embassy officials to find ways and means to improve the trade and overcome hurdles.