Iran will set up a branch of its largest commercial bank Bank Melli in Pakistan.
The decision is based on a memorandum of understanding (MoU) which was signed by the Governor of Pakistan’s State Bank Ashraf Wathra and the head of Iran’s Central Bank, Valiollah Seif, in Islamabad on March 26, the Iranian news agency Tasnim reports.
According to the document, Pakistan’s Habib Bank will be allowed to open a branch in Iran as well.
In addition, the memorandum provides the establishing correspondent banking relationships between Iran and Pakistan and preparing grounds for cooperation of the two countries’ commercial banks to facilitate the business.
The sides also agreed to form a joint banking committee to pursue the process of implementation of the agreement, Trend notes.
