ISLAMABAD – With the US suspending at least $900 million in securityassistance to Islamabad, the central bank of Pakistan (SBP) says theChinese yuan can now be used for bilateral trade and investment activities.
This could spell the end of the US dollar as the medium of exchange betweenChina and Pakistan which are planning to establish a $57 billion economiccorridor.
Washington seems to be increasingly upset at Islamabad’s strong ties withBeijing even though the US State Department on Thursday cited Pakistan’sperceived failure to do enough in fighting terrorist groups as the reasonwhich had prompted Washington to suspend the aid.
“The United States has foolishly given Pakistan more than $33 billion inaid over the last 15 years, and they have given us nothing but lies &deceit, thinking of our leaders as fools. They give safe haven to theterrorists we hunt in Afghanistan, with little help. No more!” PresidentDonald Trump tweeted Monday.
The announcement drew prompt response from Pakistani officials, with seniorSenator Nuzhat Sadiq stating that Islamabad can manage without the UnitedStates.
China meanwhile rushed to Pakistan’s defense through public statementsissued by Foreign Ministry spokesman Geng Shuang.
“Pakistan has made enormous efforts and sacrifice for the fight againstterrorism and has made very outstanding contribution to the global cause ofcounter-terrorism. The international community should acknowledge that,”Geng said.
“We believe as neighbors, China, Pakistan and Afghanistan are closelylinked not only geographically but also in terms of common interests. It isnatural for us to enhance communication and exchanges,” he said.
Beijing and Islamabad are looking at extending the China-Pakistan EconomicCorridor (CPEC) to Afghanistan.