Islamabad: The government is mulling using Chinese Yuan to lessen the risk of varying exchange rate by amending Power Policy 2015, a news source reported. The Three Gorges South Asia Investment Limited is keen to include Yuan in the basket of four other international currencies: US Dollar, Pound Sterling, Euro and Japanese Yen.
The company has already requested Private Power Infrastructure Board (PPIB) to incorporate Chinese currency in power tariff for China-Pakistan Economic Corridor (CPEC) projects, including the 1124MW Kohala Hydropower project.
PPIB later referred the matter to the State Bank, saying, if allowed, the central bank would provide cover in Chinese currency for debt repayments and interest. SBP duly supported the proposal to include Chinese currency on the list of currencies entitled for adjustments in power tariff for variation in exchange rate and debt servicing related adjustments.
Moreover, it said the regulatory framework is available to facilitate Chinese currency in trade and investments transactions through normal banking channel and authorised dealers. The central bank has also sought the finance ministry’s approval to include Yuan as pricing currency for necessary tariff adjustments for Independent Power Producers (IPPs).
