Letters of credit (L/Cs) are to become more available for transactions between counterparties in Pakistan and Tajikistan.

New banking links between the two countries were announced during a visit to the Tajik capital of Dushanbe by a delegation of Pakistani business representatives.

Trilateral agreement

The leader of the delegation and chief executive of Pakistan's Trade Development Authority, Tariq Iqbal Puri, said that Pakistan's KASB Bank had opened a nostro account at a Tajik bank specifically so that traders can open L/Cs for bilateral trade.

Plans to open a microfinance bank in Tajikistan were also announced during the Pakistani delegation's visit, which led to the signing a trilateral agreement that includes Afghanistan as well as Tajikistan and Pakistan.

Export boost

As a result of the agreement, exports from Pakistan to Tajikistan could increase from US$20 million to US$300 million according to an official statement.

Pakistan sees Tajikistan as a gateway for increasing its exports to central Asian countries, Russia and even as far as Poland.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.