ISLAMABAD: Pakistan is considering a proposal to replace the US dollar with the Chinese yuan for trade between China and Pakistan, as it will benefit Pakistan in terms of reduced dependence on the US Dollar.
Minister for Planning and Development said while he was talking to journalists after the formal launch of Long Term Plan (LTP) for the China-Pakistan Economic Corridor (CPEC) 2017-30 signed by the two sides on Nov 21.
Newly-appointed Chinese Ambassador Yao Jing and officials of the provincial governments also attended the launching ceremony.
Asked if the Chinese currency could be allowed for use in Pakistan, Mr Iqbal said the Pakistani currency would be used within the country, but China desired that bilateral trade should take place in its currency — known as Renminbi (RMB) or yuan — and “we are examining the use of RMB instead of the US dollar for trade between the two countries”. He said the use of RMB was not against the interest of Pakistan, rather it would benefit the country.
The minister said China had not stopped CPEC-related investment in Pakistan as claimed by some quarters and all projects were going on with the process of feasibility studies and their scrutiny as had been the case with the first phase of investments.
All projects already identified and committed by the two sides were going through the codal formalities and moved into the implementation phase on completion of these procedures, he explained.