Identifier
Created
Classification
Origin
09KARACHI27
2009-01-28 03:24:00
CONFIDENTIAL
Consulate Karachi
Cable title:
SINDH - IRAN SEEKS TO ESTABLISH EXPORT BANK IN
how-toVZCZCXRO6597 OO RUEHLH RUEHPW DE RUEHKP #0027 0280324 ZNY CCCCC ZZH O 280324Z JAN 09 ZDS FM AMCONSUL KARACHI TO RUEHC/SECSTATE WASHDC IMMEDIATE 0890 INFO RUEHAK/AMEMBASSY ANKARA PRIORITY 0039 RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 0355 RUEHLH/AMCONSUL LAHORE PRIORITY 2638 RUEHPW/AMCONSUL PESHAWAR PRIORITY 4521 RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITY RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
C O N F I D E N T I A L KARACHI 000027
C O R R E C T E D C O P Y (DECLASSIFICATION DATE)
SIPDIS
E.O. 12958: DECL: 1/27/2019
TAGS: EFIN ECON PGOV PREL PK
SUBJECT: SINDH - IRAN SEEKS TO ESTABLISH EXPORT BANK IN
KARACHI
Classified By: CLASSIFIED BY CONSUL GENERAL STEPHEN FAKAN FOR REASONS 1
.4 (b) AND (d)
C O N F I D E N T I A L KARACHI 000027
C O R R E C T E D C O P Y (DECLASSIFICATION DATE)
SIPDIS
E.O. 12958: DECL: 1/27/2019
TAGS: EFIN ECON PGOV PREL PK
SUBJECT: SINDH - IRAN SEEKS TO ESTABLISH EXPORT BANK IN
KARACHI
Classified By: CLASSIFIED BY CONSUL GENERAL STEPHEN FAKAN FOR REASONS 1
.4 (b) AND (d)
1. (C) Summary: The Iranian Consul General in Karachi told
the Karachi Chamber of Commerce and Industry (KCCI) that his
country plans to establish an export promotion bank in the
city, a move that appears to have KCCI support. According to
a media report, the State Bank of Pakistan (SBP) would
coordinate this action and the establishment of a National
Bank of Pakistan (NBP) branch in Iran. However, SBP and NBP
officials were unaware of the Iranian proposal or the claims
in the media reports. The project seems to be in the
planning stage with no timeline set for completion. End
summary.
Iran Wants Export Bank in Karachi
--------------
2. (C) On January 20, Karachi Chamber of Commerce and
Industry (KCCI) President Anjum Nisar told EconOff that
Iranian Consul General Masoud Mahammad Zamani told KCCI
members that his country planned to establish a branch of its
export promotion bank in Karachi. Nisar said he had begun
discussing the idea with the Iranians over two weeks ago and
the concept was unveiled at a January 15 KCCI meeting. He
said planning was preliminary at this point.
3. (C) Nisar explained that many Pakistani businesses have
had difficulty trading with Iran due to the lack of a
dependable letter of credit facility. He emphasized that the
issue revolved around bilateral trade issues and had no
political implications. KCCI ) the largest trade chamber in
the city - typically represents small businesses and consumer
goods manufacturers.
Pakistan Bank Officials Unaware of Plans
--------------
4. (C) A January 16 media article on the Iranian Consul
General's meeting with KCCI members also noted that the State
Bank of Pakistan (SBP) would coordinate operations with the
Iranian export promotion bank and that the National Bank of
Pakistan (NBP) planned to establish a branch office in Iran
in the near future. However, Syed Irfan Ali, SBP Director of
Banking Policy and Regulation, told EconOff on January 20
that he was unaware of any Iranian plans to establish a
banking presence in Karachi or of any plans by the NBP to set
up a branch in Iran. NBP President Ali Raza confirmed that
his bank had no such plans at this point.
Comment
--------------
5. (C) In KCCI, Iran appears to have found an eager advocate
to support establishment of an export promotion bank in
Karachi. The dismal worldwide economic climate coupled with
the country's recent financial woes has hobbled many of
Pakistan's consumer driven companies. KCCI appears to be
seeking to expand its members' business and trade base.
However, given that the major banking and GOP regulators are
unaware of the Iranian plans, the project appears to be in
its infancy with many hurdles yet to overcome.
FAKAN
C O R R E C T E D C O P Y (DECLASSIFICATION DATE)
SIPDIS
E.O. 12958: DECL: 1/27/2019
TAGS: EFIN ECON PGOV PREL PK
SUBJECT: SINDH - IRAN SEEKS TO ESTABLISH EXPORT BANK IN
KARACHI
Classified By: CLASSIFIED BY CONSUL GENERAL STEPHEN FAKAN FOR REASONS 1
.4 (b) AND (d)
1. (C) Summary: The Iranian Consul General in Karachi told
the Karachi Chamber of Commerce and Industry (KCCI) that his
country plans to establish an export promotion bank in the
city, a move that appears to have KCCI support. According to
a media report, the State Bank of Pakistan (SBP) would
coordinate this action and the establishment of a National
Bank of Pakistan (NBP) branch in Iran. However, SBP and NBP
officials were unaware of the Iranian proposal or the claims
in the media reports. The project seems to be in the
planning stage with no timeline set for completion. End
summary.
Iran Wants Export Bank in Karachi
--------------
2. (C) On January 20, Karachi Chamber of Commerce and
Industry (KCCI) President Anjum Nisar told EconOff that
Iranian Consul General Masoud Mahammad Zamani told KCCI
members that his country planned to establish a branch of its
export promotion bank in Karachi. Nisar said he had begun
discussing the idea with the Iranians over two weeks ago and
the concept was unveiled at a January 15 KCCI meeting. He
said planning was preliminary at this point.
3. (C) Nisar explained that many Pakistani businesses have
had difficulty trading with Iran due to the lack of a
dependable letter of credit facility. He emphasized that the
issue revolved around bilateral trade issues and had no
political implications. KCCI ) the largest trade chamber in
the city - typically represents small businesses and consumer
goods manufacturers.
Pakistan Bank Officials Unaware of Plans
--------------
4. (C) A January 16 media article on the Iranian Consul
General's meeting with KCCI members also noted that the State
Bank of Pakistan (SBP) would coordinate operations with the
Iranian export promotion bank and that the National Bank of
Pakistan (NBP) planned to establish a branch office in Iran
in the near future. However, Syed Irfan Ali, SBP Director of
Banking Policy and Regulation, told EconOff on January 20
that he was unaware of any Iranian plans to establish a
banking presence in Karachi or of any plans by the NBP to set
up a branch in Iran. NBP President Ali Raza confirmed that
his bank had no such plans at this point.
Comment
--------------
5. (C) In KCCI, Iran appears to have found an eager advocate
to support establishment of an export promotion bank in
Karachi. The dismal worldwide economic climate coupled with
the country's recent financial woes has hobbled many of
Pakistan's consumer driven companies. KCCI appears to be
seeking to expand its members' business and trade base.
However, given that the major banking and GOP regulators are
unaware of the Iranian plans, the project appears to be in
its infancy with many hurdles yet to overcome.
FAKAN