Pak-Iran to resume banking transactions soon: FPCCI

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Islamabad, March 23, IRNA : Central banks of Iran and Pakistan are likely to sign agreement next week for opening banking channels to streamline trading activities between the two countries, a senior official of Pakistan said on Thursday.

The announcement was made by President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Tufail. 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 (Norouz) 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 (LC) by banks in each country would be started. FPCCI president said that the financial transactions were halted due to sanctions imposed on Iran by the international community.