Published On: Tue, Dec 19th, 2017

Pakistan to Decide, Yuan to Replace US Dollar

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yuan to replace US Dollar

Long term plan has been signed by Pakistan and china on 21st November; it is in context of China-Pakistan economic corridor (CPEC) 2017 to 2030. On this occasion Ahsan Iqbal, minister for planning and Development after the official ceremony was recorded to have said, that we are discussing the prospects if Yuan to replace US Dollar in trade between Pakistan and China.

In the launching event of long term plan, Yao Jing newly appointed Chinese ambassador was also present with other officials. On one question, regarding whether Yuan would be allowed in Pakistan he replied that, our currency shall be used in our country while china is willing to conduct trade related transaction in their currency. We admire the benefits of Yuan if used in place of dollar and we are working on the proposal. Anything in the best interest of economy shall be promoted.

No investment has been put to halt by china. We are undertaking all projects subject to their feasibility and scrutiny and this is what the first phase of investment illustrates. Projects have been framed by two countries and now gradually after completing the initial assessment and procedures we will move toward implementation phase.

Both countries have assured their utmost cooperation in all areas briefed in the long term planning document. The mutual cooperation is spread over the span of three phases i.e. till 2020 first phase, second ending on 2025 and final phase in 2030. The areas highlighted for cooperation would be agricultural progress, infrastructure, energy, bilateral trade, mitigating poverty, tourism industry, people’s standard of living and improvement of financial sector.

The LTP also illustrated that if future need arises, both countries can generate census for any situation. This plan would also serve as underlying core for consequent project and next phases. They also agreed to enhance cooperation and coordination in uplifting their financial systems with productive and efficient reforms simultaneously working to reduce risks. It was also mentioned that credit system should be developed and promoted on both sides. Currency exchange and payment system should be refined and designed in a way to comply with overall financial scenario.

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