Iranian and Pakistani private businessmen and industrialists have agreed to carry out their transactions in Pakistan’s legal tender rupee.
The agreement was reached on Monday during a meeting between Iranian and Pakistani businesspeople in the Pakistani city of Karachi.
The Iranian and Pakistani business delegates were led respectively by Chairman of Iran Chamber of Commerce, Industries and Mines Yahya Ale-Es’haq and President of the Federation of Pakistan Chambers of Commerce and Industry Haji Fazal Kadir Khan Sherani.
The Pakistani official told Ale-Es’haq that trade and banking sanctions against Iran constituted the main stumbling block to the expansion of trade and industrial relations between the two neighboring states.
“Using rupee in economic interactions will remove to a large extent the impediments to broader ties,” Sherani said.
Ale-Es’haq, for his part, welcomed the idea of rupee transactions and pledged to set the stage for such cooperation on the part of Central Bank of Iran.
Iran and Pakistan have been broadening their economic relations in the past years. The most outstanding point in their ties is a gas pipeline to deliver natural gas from Iran to its eastern neighbor.
Last month, Pakistan's Prime Minister Raja Pervez Ashraf said his country will go ahead with its multibillion dollar projects with Iran, calling for immediate steps to lift the ceiling of the bilateral trade to $10 billion.