Approval of RMB in trade with Chinese companies lauded

Gwadar Pro

Islamabad: The Pakistan Business Forum (PBF) has expressed its appreciation for the approval of the Chinese yuan (RMB) in trade with Chinese companies.

PBF Chairman (Capital Area), Atif Ikram Sheikh, commended the efforts of the finance division and the State Bank of Pakistan for making this possible.

The Commercial Bank of China (ICBC) has granted approval for yuan clearing services in Pakistan, which simplifies cross-border transactions, fulfills financing needs for both countries, and reduces currency conversion costs when trading with China.

Atif Ikram Sheikh extended his gratitude to the Finance Minister and the Governor of the State Bank of Pakistan for their persistent efforts in facilitating this development.

PBF now encourages Pakistani exporters to seize this opportunity to enhance trade with China, strengthening economic ties and increasing bilateral trade, he added.

He also noted that China remains Pakistan’s largest trading partner, and with the establishment and proper functioning of special economic zones (SEZs) under the China-Pakistan Economic Corridor (CPEC), it is expected to attract more foreign direct investment (FDI) for Pakistan from not only China but also other countries.

He highlighted the significant growth in trade between China and Belt and Road Initiative (BRI) countries, with the volume of trade in goods doubling from US $1.04 trillion to US $2.07 trillion from 2013 to 2022, and an average annual growth rate of 8%.

Chinese companies have also made substantial investments in BRI countries, creating jobs and contributing to economic development, Sheikh said.

The approval of RMB for trade with Chinese companies, he maintained, was seen as a positive step to further strengthen trade relations between Pakistan and China, with potential benefits for both countries.