The State Bank of Pakistan (SBP) called a special meeting of all banks/ financial institutions on Monday to discuss the progress made by the banking side for facilitating trade transactions with Iran.

The meeting, called in the backdrop of lifting of sanctions against Iran, was chaired by the executive director-BPRG, and was attended by senior bankers.

It may be recalled here that the SBP advised all banks on February 25, 2016 to resume normal business activities with Iran, as per UN Resolution and a notification by the federal government.

The participants discussed the issues relating to international sanctions and deliberated on the future course of action. SBP provided general guidance on trade with Iran in the post sanctions period, while keeping in view the residual sanctions. It also clarified the points raised by banks.

The banks were asked to take immediate measures for updating their policies, procedures, systems and controls, restoring their communication channels and agreements with their counterparts in Iran for an early start to normal trade and business activities.

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.