Pakistan, Iran Agree to Trade in Euro and Yen

State Bank of Pakistan (SBP) and Bank Markazi Jomhouri Islami Iran (BMJII) have devised a payment settlement mechanism to settle trade transactions between the two countries, a statement issued by the central bank said.

The mechanism will be available as an additional mode and does not restrict the use of other permissible mechanisms for settlement of the trade transactions.

This mechanism will be available for the payment of goods and services traded between Pakistan and Iran. Accordingly, transactions eligible for settlement under this mechanism will be denominated in Euro or JPY and based only on documentary Letter of Credits (L/Cs) conforming to the Uniform Customs and Practice for Documentary Credits UCP 600 published by the International Chamber of Commerce (ICC).

Last month, the central banks of both countries signed an agreement towards development of payment settlement mechanism.

Modus Operandi The modus operandi for processing of transactions under this mechanism will be as under: Payment of Imports by Pakistan: Importer’s bank in Pakistan will credit the foreign exchange (i.e. amount due under L/C) in Nostro account of SBP for onward payment to the exporter in Iran and inform the same to SBP as per format attached as Annexure-A.

On confirmation of receipt of funds in Nostro account, SBP will instruct BMJII to pay the exporter’s bank for onward payment to exporter in Iran. Receipt of Funds Against Exports from Pakistan: On receiving payment instructions from importer’s bank in Iran, BMJII will instruct SBP to make payment in Pakistan. SBP, on receiving the instructions from BMJII, will credit the Nostro account of exporter’s bank in Pakistan in FCY.

Participating banks shall ensure that transactions conducted under this mechanism are not proscribed and do not involve individuals/entities proscribed under international sanctions.

Execution of transactions under this mechanism will be subject to compliance of all applicable foreign exchange rules and regulations.

The Authorized Dealers including commercial banks interested to work under this mechanism, are advised to State Bank of Pakistan by May 31, 2017.

      • Matlab Hamari Army Or Forces Is QABIL Nahi k Wo Apne Mulk K Enemy Se Lar Sake ?
        Is K Lie ERAN Se Import Karna Hoga Forces Ko Well Said Allama Sahab

        • But he said the right thing…. if we cannot control the terrorists on our land, then others would do it.

          • Hamay Control Karna Chahyeh Na K Kisi Or Ko :
            Agar Aisa he Hai to Kashmir Pe Bhi Hamay Hamla Karna Chayeh :
            After All indian army waha as a enemy he kam kar rahi hai
            Syria Pe Bhi Hamla Karna Chahyeh Q?k Daaish Hai Waha Pe

                  • Indo-Pakistani War of 1947 (Pak Won)
                    Indo-Pakistani War of 1965 (Pak Won)
                    Indo-Pakistani War of 1971 (Pak Lost & West Pakistan Lost too)
                    Indo-Pakistani War of 1999 (Pak Lost)

                    • Corrected:
                      Indo-Pakistani War of 1947 (There was no established A(r)my, People of Northern Areas fought and won)
                      Indo-Pakistani War of 1965 (A tie)
                      Indo-Pakistani War of 1971 (Pak lost half country with around 1 lac prisoners of war)
                      Indo-Pakistani War of 1999 (Pak lost this foolish and unnecessary war which was started without knowledge of Govt and we still blame the civilian Govt for this lost war)

                    • In 1971 war, 35,000 were soldiers, rest were civilians.

                      On 1999, read book of “Barkha Dutt” and watch interview of ex-Indian Army chief. 1999 war they themselves say they lost. That’s true that civilian government had to take the blame. Nawaz was sent to US to get their support but was embarrassed by US govt. knowing that Pakistan army kept him in dark and it was adventure of jihadis and then Pakistan army.

                    • My father was at Dhaka Airbase in 1971 and later became POW. There were no civilian POWs.
                      Regarding 1999, if we were winning then why we came back from Indian territory? Its not a difficult question. Uniform men should be thankful to NS as he kneeled at Whitehouse to save their dignity and to restricted India to start full scale war.

                    • You are wrong, my uncle worked as a civilian engineer for government industry in East Pakistan and he was a prisoner of war until 1974. He was never in military.

                    • All pows were releases in 1972 after Shimla agreement. Anyway never heard of civilian pows before as Red Cross was there to keep check on Indians.

                    • Update your information, read book of “Barkha Dutt” and watch interview of ex-Indian Army chief. 1999 war they themselves say they lost.

                    • You are wrong, Pakistan lost in 1965. We started the war, we failed our objectives, our economy was shattered and you can see official reports on our GDP from 1960-1965 and 1965-1970 to see how bad things became for us.

                      WE LOST 1965
                      GET OVER IT

          • Uzair Baloch and Kalboshan were enjoying safe heavens where exactly ?

            Wasn’t it Iran ?
            What gave them right to kill Pakistani soldiers in 1984 in Queeta? If they are sh-ia state doesn’t mean they have to take responsibility of shias in Pakistan, we can better do that, they should do mind their own business.

            • You are right about Iran but it was past. Now Pakistan has changed course and has courage to tackle Iran and Saudia. Recent example is keeping away from Yamen war. BUT it does not mean that we deteriorate relations and avoid trade.

          • Pakistanion ko terrorists se bht piyar hou gaya hai :) apnai bachai b marwa ker unki hamiyat kertai haien.

      • Hazrat,

        Kalboshan came to Pakistan via Iran.

        Uzair Baloch was given safe heaven in Iran.

        Chaharbar port is given to India whereas the later clearly has shown its intend for acquiring this port. In case of CPEC China never said India is the target.

        Iran’s adventure and killing in Pakistan in 1984 should not be forgotten. There role in sectarian violence in Pakistan is always neglected and not spoken about but Saudia is always in news for the same.

        If they have a problem they should build a wall on Iran-Pakistan border but their military will not do that as they benefit the most from illegal smuggling on Iran-Pakistan border.

        Their real “paet ka dard” is new military alliance. Pakistan should respond in the same tone, bhai-chara if exists should be from both sides.

    • Business is never related to religion………… and you can always choose your friends but not neighbors. We should keep good terms with Iran as we have already got problems at other borders.

        • Pakistan has not accepted Israel as independent country and therefore cannot transmit payments or use any services related to it.
          In layman terms, Israel doesn’t exists in our books and you cannot do business with ghosts.

      • True, only “we” kept good relations and restraint and they were always shamelessly outspoken. In 1984 they killed our soldiers in Queeta and people of Pakistan aren’t aware of it. Their ambassador was involved in financing shia militant groups and Iran always came forward projecting itself as savior of shias.

        Kalboshan came via Iran and lived there, Irani intelligence was aware of it and Kalboshan has admitted it. Uzair Baloch was given passport and safe heaven in Iran.
        Charbahar port given to India where later clearly said about its motive.

        If Saudia is blamed for sectarian divide in Pakistan Iran is equally involved in this but never mentioned openly by anyone.

        • Iran and Saudia has done much damage to Pakistan in shape of sectarian voilance. Regarding other secret services related matters….. every country does it and important matter is to counter it which Pakistani agencies are doing right now.

    • Saudia Arabia aur Iran ke chamche na bnao sare. They both hate each other we should stay away from both countries.

      • You are wrong iran aur saudia mien faraq hai, kitni dafa iran nae apkay political matters mien interfare kia ? Nawaz sharif ko bachaya ya wahan se latter likha ? Jab kay saudia nae to taliban ko banaya aur firqawariyat ko hawa di , agher iran nae firqa wariyat ko promote kia hota to pakistan mien sirf aik firqai kay logo ka he qatal e aam q hota ?

        • I kn Saudia is worse. Btw saudia/UAE ne bi pakistan dhamki di thi jaab pakistan yamen ki jang ka hisa nai bna tha. But still we shouldnt be advocate to iran nor saudia. Both supports their own sects in Pakistan. Saudia supports wahabi madarsas and iran supports shia madarsas.

    • Usama bin laden pakistan se he pakera gaya tha pai ji, aur iran agher dushman hota to apki army cheif ka saudia ghulam banai se pehlai he ap ko thaknai laga dayta, pak mien sirf iran se related nafrat phyelai ja rahe hai jab kay iran se humhien faida he hai, uzai bloch ko jahan tak baat hai uzair baloch to mullana tariq jameel sab kay sath b betha howa paya gaya hai to kia mullana b irani agent howai ? Gulbashan yadhav li jahan tak baat hai to uskay pass fake iranian passport tha jis ko iran nae deny kerdia hai. Ap ki agency ka kasour hai kay un se wo bandha 20 saal ba pakera gaya.

      Baqi iran b bura afghnistan b bura bangladesh b bura india b bura bus saudia dost ? Jo modi ko civil military award dayta hai, kahsmir par aik lafaz b nahe bolta ? Es 39 ghair islami ithad ka maqsas kia hai yemen par bomb kerna ? Yemni musalman nahe ? Yeh 39 ghair islami ithad kia kashmir par biyan dey sakhta hai ?

    • Please don’t let Pakistan to again become playland for Saudia and Iran.
      Relations between countries are dependent of mutual interest rather than religion.

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