By John Lee.
Pakistan’s central bank has lifted restrictions on commercial banks and financial institutions to do business with Iran.
In a statement, the State Bank of Pakistan (SBP) said:
“In line with the federal government’s decision to implement the United Nations Security Council Resolution 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.
“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 neighbors.”
According to Reuters, trade between Pakistan and Iran fell to $432 million in 2010-11 from $1.32 billion in 2008-09; the main Pakistani exports to Iran include Basmati rice, plastics, paper and oranges, and the big imports items include liquefied petroleum gas, petroleum products, electric transformers and dry fruits.
(Sources: SBP, Reuters)