Islamabad: Pakistan and China have officially begun to utilise local currency to settle payments between buyers and sellers in the two countries, a news source reported. A Pakistani company recently imported heavy machinery from China by paying RMB 327 million.
The decision to trade in local currency was taken during Prime Minister Imran Khan’s visit to Beijing. The State Bank had also sought the finance ministry’s approval to include Yuan as pricing currency for necessary tariff adjustments for Independent Power Producers (IPPs).
A regulatory framework is already available to facilitate Chinese currency in trade and investments transactions through normal banking channel and authorised dealers.
According to the Ministry of Planning, Development and Reform, Pakistan would have to pay USD 40 billion to China in debt servicing and dividends established under the multi-billion China-Pakistan Economic Corridor (CPEC) project.
