Pakistan central bank governor advocates use of Renminbi to boost economic ties with China

In this file photo, taken on January 3, 2018, a Pakistani currency dealer counts Chinese currency for his customer at his shop in Quetta. (AFP/File)
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Updated 27 October 2023
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Pakistan central bank governor advocates use of Renminbi to boost economic ties with China

  • Jameel Ahmed says Pakistan has the required framework to use the Chinese currency for trade, investment
  • He says Pakistani businesses should enhance understanding of Chinese market and conduct trade in RMB

KARACHI: The governor of Pakistan’s central bank, Jameel Ahmed, said on Friday the use of Chinese currency, Renminbi (RMB), to settle cross-border trade and investment transactions could further strengthen economic and financial ties between the two countries.

He made the observation at an event arranged by the Industrial and Commercial Bank of China (ICBC) in Islamabad to mark its designation as the RMB clearing agent in Pakistan by the Peoples Bank of China.

Ahmed said the State Bank of Pakistan (SBP) had put in place the required regulatory framework to facilitate the use of the Chinese currency in trade and investment transactions while keeping in view the importance of his country’s economic ties with China.

The local business community can now open letters of credit and avail financing facilities in RMB under the framework.

“In terms of regulations in Pakistan, RMB is at par with other international currencies, such as the US dollar, euro and Japanese yen,” the SBP governor was quoted as saying by an official statement. “Both public and private sector enterprises in Pakistan are free to choose RMB for bilateral trade and investment activities.”

The statement informed that as a result of the central bank’s efforts to promote RMB’s use in trade with China, it denominated imports had increased from about two percent in FY18 to around 18 percent in FY22.

The SBP governor said banks could play a major role by providing their customers with the necessary information pertaining to the regulatory framework in China to conduct transactions in RMB.

He also expressed hope that Pakistani businesses would enhance their understanding of the Chinese market and evaluate the benefits of conducting trade in RMB at a more competitive pricing.

He reiterated that the central bank was committed to providing the policy and regulatory support to further strengthen economic and financial ties with China for the mutual benefit of consumers and businesses in both countries.


Karachi mayor says city focused on rescue, identification after mall fire kills 67 

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Karachi mayor says city focused on rescue, identification after mall fire kills 67 

  • Blaze broke out on Jan. 17 at Gul Plaza, trapping workers and shoppers inside and burning for more than 24 hours 
  • Authorities say identification has been significantly slowed by the condition of the bodies recovered from the site

ISLAMABAD: Authorities in Karachi are focused on ongoing rescue operations and the identification of victims and handover of remains to families, the city’s mayor said on Friday, after a deadly fire at a shopping plaza killed at least 67 people this month.

The blaze broke out on Jan. 17 at Gul Plaza, a densely packed commercial building in the heart of the city, trapping workers and shoppers inside and burning for more than 24 hours before being brought under control. Recovery operations are still underway as teams sift through unstable debris at the site.

Karachi Mayor Murtaza Wahab said in a statement the city administration remained focused on retrieving remains and returning them to families as quickly as possible. His remarks came after he visited the homes of several victims, according to a statement from his office.

“Rescue personnel of the Karachi Metropolitan Corporation are still engaged in the rescue operation, while the administration is making every effort to hand over [remains] of the victims, loved ones to their families at the earliest,” Wahab was quoted as saying.

Identification has been complicated by the condition of the remains, Karachi Police Surgeon Dr. Summaiya Syed told reporters.

Most of the bodies recovered so far were discovered in fragments, she said, making forensic identification extremely difficult and prolonging the process for families waiting for confirmation.

Relatives of more than a dozen missing persons have remained near the destroyed plaza and at hospitals even after submitting DNA samples for testing. Some families have voiced frustration over the pace of recovery and identification efforts.

Wahab said the provincial government stood with affected families and had committed to long-term support.

“The Sindh government would also not sit back until the victims are fully rehabilitated and that all possible support would be provided [to them],” he said.

Authorities have yet to determine the cause of the fire. Police have said preliminary indications point to a possible electrical short circuit in the plaza which houses over 1,200 shops, though officials stress that conclusions will only be drawn after investigations are completed.

Deadly fires are a recurring problem in Karachi, a city of more than 20 million people, where overcrowded markets, aging infrastructure, illegal construction and weak enforcement of safety regulations frequently contribute to disasters. 

Officials say a blaze of this scale is rare.

The Sindh government has announced compensation of Rs10 million ($35,720) for each person killed in the fire and said all affected shopkeepers would also be compensated.