Pakistan’s decision to deal in RMB currency with China applauded

Islamabad: Coordinator to Federal Tax Ombudsman Meher Kashif Younis has appreciated the Pakistani government’s decision to deal in RMB currency with China.

“The recent decision of government is good one for direct settlement and clearing in RMB between China and Pakistan and would help balance greatly the possible trade fluctuations caused by changes in US dollars,” he maintained.

Moreover, he added, “RMB clearing could be fast track for two countries to further deepen industrial cooperation in financing and purchasing.”

Younis pointed out that the trade volume of Belt and Road Initiative (BRI) countries had reached 11.6 trillion Yuan last year. “If RMB clearing and settlement was fully encouraged, trade efficiency in countries along the Belt and Road would improve,” he observed.

In a statement issue here, he mentioned that since 2006, annual trade between Pakistan and China had averaged US $ 17.61 billion, adding that Bank of China and State Bank of Pakistan accord would support cross border transactions.

Younis hailed the government decision to import crude oil from Russia in currencies of friendly countries as mutually agreed by the two countries.

“It is a good omen that Pakistan would pay in the currencies of friendly countries which would definitely ease dollars pressure on either sides and help pave way for further strengthening the existing economic cooperation and bilateral relations,” he remarked.

He said agreements between both the sides would pay dividends in the days to come and appreciated that government wanted to import 35% of its total crude oil requirement from Russia.

Younis underlined that Pakistan depended on oil from Gulf countries, mainly due to close political and friendly ties, which often extended facilities like deferred payments, and that route was cheaper logistically given proximity to the Strait of Hormuz.