SBP inks accord with Iranian counterpart
By Our Staff Reporter | 4/15/2017 12:00:00 AM
KARACHI: The State Bank of Pakistan (SBP) has signed an agreement with Bank Markazi Jomhouri Islami Iran (BMJII) to facilitate bilateral trade.

The agreement was signed in Tehran, a press release by the SBP said on Friday. `An agreement on Banking and Payment Arrangement (BPA) has been signed between the SBP and BMJII,` it said.

SBP Deputy Governor Riaz Riazuddin and BMJII Vice Governor Ghulamali Kamyab signed the agreement on behalf of their respective central banks.

The objective of the agreement is to provide a settlement mechanism to promote trade between Pakistan and Iran. `This mechanism will be used for the payment of trade conducted via letters of credit and in accordance with international laws and regulations,` the statement said.

Both institutions will now invite banks in their respective jurisdictions to act as authorised banks for undertaking trade transactions under the BPA. `Details of the mechanism will be issued by the SBP in due course,` it noted.