ISLAMABAD (PEN) : Pakistan is preparing to launch a pilot project that will enable export-oriented businesses in the Gwadar Free Zone to conduct transactions in Chinese renminbi (RMB). This initiative aims to attract more foreign investment by allowing companies the flexibility to maintain accounts in either US dollars or RMB without facing foreign exchange restrictions.
This proposal was highlighted during a recent meeting of the Cabinet Committee on Chinese Investment Projects (CCOCIP), where the China Overseas Ports Holding Company (COPHC) advocated for the RMB settlement exemption specifically for the Gwadar Free Zone.
In light of changing economic conditions and to bolster Gwadar’s position in regional trade, the Pakistani government has strategically redirected 60% of its maritime cargo traffic from Karachi to Gwadar Port. This shift is seen as a crucial step in enhancing Gwadar’s role in trade.
Additionally, COPHC has suggested that Gwadar Port should handle seafood transshipments from international waters, with the goal of establishing the port as a regional hub for seafood logistics.
The CCOCIP has instructed the Ministry of Maritime Affairs to work closely with various government bodies, including the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Commerce Division, and Finance Division, to fine-tune these proposals. They also emphasized the importance of consulting with the Balochistan provincial government, given that fishing is a vital livelihood for many in the region.
The Ministry of Maritime Affairs has been tasked with outlining a detailed plan to address these challenges, ensuring that developments align with both local and national economic strategies.
Moreover, the safety of Chinese nationals working on various projects across Pakistan, particularly those tied to the China-Pakistan Economic Corridor (CPEC), remains a top priority. There have been ongoing requests for more streamlined and effective standard operating procedures to ensure their security, reflecting the commitment to fostering a safe and supportive environment for all involved in these initiatives.
