ISLAMABAD: Pakistan on Friday lifted the sanctions on Iran pursuant to United Nations Security Council Resolution 2231, said a statement issued by the Finance Ministry.
The modalities for lifting of sanctions were finalised in an inter-ministerial meeting chaired by Finance Minister Ishaq Dar. A formal notification has been issued to this effect by the Ministry of Foreign Affairs after the meeting. This would revive economic and commercial relationship between Pakistan and Iran, including in the areas of trade, investment, technology, banking, finance and energy. “All previous notifications giving effect to UN Security Council sanctions on Iran stand repealed with the issuance of the new notification by the Ministry of Foreign Affairs,” the statement said.
Pakistan had welcomed the Joint Comprehensive Programme of Action (JCPOA) agreed between Iran and European Union, China, the United States, Germany, France, the United Kingdom and the Russian Federation. Pakistan also appreciates the steps taken by Iran for the implementation of the JCPOA. “It would enable the two countries to fully reinvigorate various bilateral and multilateral arrangements for promoting investments and cooperation in across all sectors including banking, finance, industry and energy,” the statement said.
In Resolution 2231, dated July 20, 2015, the United Nations Security Council (UNSC) unanimously endorsed the Iran nuclear deal of July 14, 2015. On December 2, 2015 Iran was confirmed by the International Atomic Energy Agency (IAEA) to have fulfilled its commitments under the deal. Accordingly, seven UNSC resolutions were terminated on January 16, 2016 and $100 billion worth of frozen financial assets released as part of the lifting of sanctions. But unilateral US sanctions remain against its alleged missiles programme, while Tehran denounced them as legally and morally illegitimate.
Earlier this year, Japan also lifted its sanctions on Tehran, falling in line with major world powers after the United Nations atomic energy agency confirmed that Tehran had fully taken steps to curb its disputed nuclear programme. Iran emerged from years of economic isolation when the US and other countries lifted crippling sanctions against the Islamic republic. Tens of billions of dollars worth of Iranian assets are now unfrozen and global companies that have been barred from doing business there will be able to exploit a market hungry for everything from automobiles to airplane parts.
With the lifting of the sanctions, Japanese insurance companies will be able to issue policies covering trade deals involving Iran. Japanese business will also be able make new investments in Iran’s oil and gas sector. Separately, a delegation of Saudi oil company Aramco, led by its vice chairman, Abdul Aziz M Al-Judaimi, called on Finance Minister Ishaq Dar on Friday and expressed the company’s interest in investing in the oil refineries and power sector of Pakistan. Judaimi stated that the purpose of the visit was to explore investment opportunities in the energy and petrochemical sectors. “Pakistan is not only a large market, it also provides access to other markets in the region, therefore, Aramco would be looking at making investment in refineries and power stations,” he said.
Judaimi informed that a technical team would visit Pakistan soon to seek further details about various potential projects. He said that the visit was being undertaken under the direction of Prince Muhammad Bin Salman Al Saud, the deputy crown prince of Saudi Arabia. The finance minister welcomed the delegation and hoped that the visit will lead to further strengthening of economic relations between the two countries. He referred to the special interest of the Saudi leadership in the development of Pakistan and recalled his visit to Saudi Arabia during which many Saudi companies had indicated their interest in the investment opportunities in Pakistan. He said Pakistan offered a very attractive incentive package for foreign investors and Saudi investors must make use of it for mutual benefit of the two sides.
