KARACHI: Employers’ Federation of Pakistan (EFP) welcomed decision by central banks of Pakistan and China on collaborating conducting payments and trade in Renminbi (RMB). In a statement, Ismail Suttar President of EFP said after signing between central banks on RMB clearing in Pakistan Chinese central bank proposed for Pakistan to set up a RMB capital circulation system to further promote trade and transaction in Chinese currency.

For enhancement of trade in RMB, a pilot project encompassing introduction of ‘RMB pricing’ will be introduced in phase one. In phase two, RMB settlement and financing policies will be focused on.” Agreement sets precedent for a long and strengthened economic relationship between Pakistan and its second largest trade partner, China. 

Currently Pakistan is facing severe debt crisis coupled with huge forex reserves depletion. This agreement will thus help both countries in bypassing of routing dollar payments through New York. Suttar opined that EFP is committed to supporting Government of Pakistan and institutions working on economic prosperity for Pakistan and always welcomes decisions creating ease of doing business for Employers in Pakistan.

Published in The Daily National Courier, November, 11 2022

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.