Governments of Pakistan and China should make special endeavours to uplift confidence of importers and traders of both countries on benefits of Currency Swap Agreement: Shah Faisal Afridi

Lahore, February 18, 2016 (PPI-OT): The governments of Pakistan and China should make special endeavours to uplift confidence of importers and traders of both the countries on benefits of Currency Swap Agreement (CSA) It was stated by Mr. Shah Faisal Afridi, President Pak-China Joint Chamber of Commerce and Industry (PCJCCI) while delivering address of welcome to a 6-member Chinese delegation led by Mr. Zhu Ming Wei General Manager of Zhangjiakou Shengyuon Leather Chemicals. The delegation included Mr. Wu Waybi, Mr.WeiGuo, Mr.Sam, and Mr. Cao Yan. He said both the governments need to disseminate information regarding this imperative agreement among their respective trade Bodies and Chambers of Commerce and Industry.

He opined that absolute execution on currency swap agreement with China can rectify the economic obscurity of Pakistan as the bilateral trade between Pakistan and China is not getting anticipated benefits from this agreement (CSA). He said that the CSA signed in 2013 is treading on a vague trajectory with no destination at all.

While explaining the importance of currency swap agreement, Shah Faisal Afridi said that currency swap deal was signed to prove as a timely antidote to the ailing two-way trade relations. He said, China is now the world’s second largest economy and largest exporter and the execution of this agreement was to facilitate domestic financial stability, China’s currency, the renminbi (RMB), is also gaining popularity around the world through CSA, therefore proper execution is necessary to reap desired benefits for Pakistan, he added.

He observed that with the growing importance attached to China as a pivotal economy of the world as well as an immediate neighbour of Pakistan, it is about time for Pakistan to think about strengthening its economic ties with China, apart from existing strong strategic and military relations. Although Pakistan’s economy is much smaller than that of China’s in terms of GDP, trade, reserves etc., yet the Currency Swap offers a huge potential for Pakistan’s economy, he added. He urged that the government of Pakistan has to take serious actions to resolve the issues which are impediment to the implementation of currency swap agreement.

Mr. Zhu Ming Wei explained that China signed bilateral currency-swap agreement with 28 countries for providing liquidity and facilitating trade. He said that Pakistan and China currency-swap agreement had been executed for tenure of 3 years in respective local currencies, Pakistan Rupee 140 Billion and Chinese Yuan 10 Billion. But unfortunately Pakistan is not getting the required benefits, he mentioned.

In order to get maximum benefits from Currency swap agreement between Pakistan and China there is a need to ensure several measures at the part of government, policy makers and trade bodies, Mr. Zhu Ming Wei elaborated that It should not be ignored that Pak-China CSA holds significant position for Pakistan in terms of bringing foreign investment, technology, innovation and experts from China, as a developing country like Pakistan cannot afford costly trade with the countries located faraway. Hence Pak-China CSA is a good opportunity for Pak-China exporters, he added.

Mr. Shah Faisal Afridi stated that Pak-China CSA can be an opportunity if all the stakeholders including Ministry of Commerce, Textile Industry, and exporters make appropriate plans by revisiting their priorities and hurdles hindering to move ahead in this direction taking on board all chambers of commerce and trade bodies.

For more information, contact:
Wardah Ali Gohar
Media Manager
Pakistan China Joint Chamber of Commerce and Industry (PCJCCI)
Mega Tower, 309 – 6th Floor,
Main Boulevard, Gulberg II,
Lahore, Punjab – Pakistan
Tel: +92-42-35777460-02, +92-42-37032203, +92-42-35874353
Fax: +92-42-35777524
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Website: www.pcjcci.org