Islamabad, 24 December 2021 (TDI): The Ambassador of the Republic of Iraq in Islamabad Hamid Abbas Lafta has met the Pakistani Minister of Finance, Shaukat Tarin. Furthermore, the Advisor to the Prime Minister of Pakistan for Religious Affairs, Sheikh Tahir Mahmoud Ashrafi, was also present.
Ambassador Abbas Lafta assured that Iraq and Pakistan have fraternal relations based on solid foundations of common ties. He also pointed out that Iraq was one of the first countries to recognize Pakistan.
Objectives and Priorities
During the meeting, the Ambassador called for opening direct banking channels between Iraq and Pakistan through governmental and semi-governmental banks. This is the goal to provide banking services between companies. In addition, the opening letters of credit and transferring funds. These objects represent an important step to increase commercial and banking activity between the two countries.
On his part, the Pakistani Finance Minister, Shaukat Tarin, has welcomed these proposals, expressing his support for them in the common interest of both sides.
Iraq-Pakistan Economic Prospects
In Iraq, the economic growth is gradually recovering following last year’s pandemic-related contraction. According to the World Bank, this is partly due to higher non-oil activity. Furthermore, improved global oil market conditions are expected to reinforce growth in the medium term. It represents a turn of the fiscal and external balances to surpluses from 2021, and to reverse the recent surge in debt.
On the Pakistani side, with the pandemic, the Government has been focused on managing the repeated COVID-19 infection waves. The government implemented a mass vaccination campaign, expanding its cash transfer program, and providing accommodative monetary conditions to sustain economic growth. As well, it implemented micro-lockdowns that successfully limited the infection spread, while permitting economic activity to continue and thereby mitigating the economic fallout. While they have been accelerating, vaccination rates remain low.
As stated before, both countries agreed on expanding financial cooperation and technical services.
