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Govt weighing options to use local currencies in trade

The Business Report

KARACHI: Pakistan, facing acute shortfall in foreign currency reserves, has deliberated ideas to save over $30 billion a year through holding trade with friendly countries including China and the United Arab Emirates (UAE) in local currencies.
China has remained the single largest trade partner of Pakistan. Islamabad imports goods worth over $15 billion from Beijing every year. The two countries have already signed currency swap agreement, which allows trade between the two countries in local currencies.
“Therefore, there is a need to actively utilise the currency swap agreement. This will help us save $15 billion annually and contribute in building our foreign currency reserves in dollar denomination,” said the Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan.

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