The State Bank of Pakistan (SBP) has given green signal to traders for exporting mangoes to Iran. Recently, Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) approached the SBP, inquiring about the current status of trade ties with Iran as earlier export of mangoes to Iran were suspended owing to trade sanctions imposed on Iran by the US.
Waheed Ahmed chairman PFVA said, Iran is a potential market for Pakistani mangoes and exporters estimate that this season over 20,000 tons of mangoes would be exported to Iran, provided that proper banking facilities are made available to them.
He also said, there was some confusion on trade with Iran as some banks were reluctant to issue Form-E for export of mangoes therefore PFVA had approached the central bank to get an official version on the issue.
Responding to PFVA concerns the SBP in a June 3, 2016 letter informed that after the lifting of sanctions against Iran, SBP had issued necessary instructions to all banks on February 25, 2016 according to the SRO issued by the Ministry of Foreign Affairs that read, “These instructions clearly provide that payment and settlement on behalf of Iranian entities not on the SDN list is permissible for trade in non-sanctioned items”.
According to SBP, as such there is no restriction on certification of Form-E for export of goods to Iran and further all authorised banks have been advised to take immediate measures for updating their policy, procedures, controls and restoration of communication channels and trade agreements with their Iranian counterparts to establish normal trade and business activities, SBP added.
PFVA chairman said “SBP in its response has given green signal to exporters and from Monday onwards we will contact our banks for Form-E for export of mangoes to Iran, as SBP has also advised that individual exporters can seek further clarification on the matter from respective banks”, he added.
The mango season has already started and Iran being a traditional lucrative market of Pakistani mangoes offers substantial export potential and mango exporters will also focus on this neighbouring country, Waheed said.
“As trade between Pakistan and Iran has now been restored and the embargo imposed by the US prohibiting trade with Iran now been lifted, we believe that Iran is a very lucrative market for Pakistani mangoes”, he added. He said that Pakistan can export mangos to Iran via sea and land route and for this season, we have a target of 20,000 tons at a reasonable price of USD$700 to $850 per ton.
As per estimates Pakistan can easily export up to 50,000 tons of mangoes annually to Iran within the next five years and earning over $22 million in foreign exchange for Pakistan, he informed.
Source: Business Recorder