ISLAMABAD – China is said to have offered Islamabad the option ofcommencing trading in Renminbi (Yuan) in which regard meeting has been heldwith the State Bank of Pakistan (SBP).
According to sources privy of the development, the recommendation was putforth by the Chinese Ambassador to Pakistan Yao Jing in a meeting withex-interim Minister for Commerce, Mian Misbah-ur-Rehman.
In the meeting, several issues of economic cooperation and bilateralbetween the two countries were brought forth.
Also, China is mulling announcing unilateral trade concessions to Pakistanwhich will increase its exports to Beijing and hence decrease trade deficit.
The China-Pakistan free trade agreement (CPFTA) part 1 favoured China sincetheir exports to Pakistan were valued over $15 billion compared toPakistan’s exports of a meagre $1.5 billion in FY18.
And the last round of CPFTA talks held in Islamabad were unsuccessful asboth countries were unable to reach an agreement on the second phase.
Also, a high-level meeting presided under the chairman of ex-prime ministerShahid Khaqan Abbasi had taken the decision of not finalizing CPFTA part 2till the industry was taken aboard