B&R News: Pakistan considers plan to use yuan in trade with China
21 Dec 2017


Pakistan is considering a proposal to replace the US dollar with the yuan for trade with China, Pakistan's English-language daily newspaper Dawn reported on Tuesday.


Interior Minister Ahsan Iqbal, who has been central to the planning and implementation of China-Pakistan economic ties, was reported to be discussing the proposal after unveiling a long-term, bilateral economic development cooperation plan.


Iqbal said Pakistan would continue to use the rupee domestically.


Pakistan and China on Monday unveiled a long-term cooperation plan in economic development envisioning cooperation until at least 2030 in areas ranging from infrastructure to information technology.


It is the first time the two countries have announced how long they plan to work together on the project, known as the China Pakistan Economic Corridor (CPEC).


The long-term CPEC plan was made public in a ceremony in Islamabad attended by Iqbal, who is also the Minister for Planning, and Chinese Ambassador Yao Jing.


The document did not give specific details on the projects, such as terms and conditions of investments and loans, nor did it provide details for special economic zones, some of which are already underway in Pakistan.


The Pakistani minister noted that China had not stopped CPEC-related investment in the country as claimed by some quarters, according to Dawn's report. All projects were continuing their feasibility studies and reviews as had been the case with the first phase of investments, he said.


As of the end of July, China's foreign direct investment in Pakistan amounted to $4.6 billion, according to the Chinese Ministry of Commerce.


The CPEC, project of the China-proposed Belt and Road initiative to build a new Silk Road of land and maritime trade routes across more than 60 countries and regions in Asia, Europe and Africa, has committed a $57 billion investment in Pakistan.


The long-term plan highlighted key cooperation areas between the two neighbors, which included connectivity with a road and rail infrastructure, information network infrastructure, energy, trade and industrial parks, agriculture, poverty alleviation and tourism.


Source: Global Times