Pakistan to Trade With Afghanistan in Rupees: Report
In an attempt to save foreign exchange, Pakistan would soon start trading with Afghanistan in rupees that may ease the burden on the former's growing current account deficit, a media report said on Friday.
Karachi, September 11: In an attempt to save foreign exchange, Pakistan would soon start trading with Afghanistan in rupees that may ease the burden on the former's growing current account deficit, a media report said on Friday.
Shaukat Tarin, Pakistan's Minister of Finance and Revenue, told the Senate Standing Committee on Finance that trade with Afghanistan would be in rupee now as the government wanted to save its dollar reserves, Pakistan's The Express Tribune reported on Friday.
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Ahmad Jawad, Pakistan Businesses Forum's vice president, called it a good move for the country's importers too.
"In a currency swap arrangement, countries that buy from each other pay in their respective currency at a pre-determined exchange rate instead of trading in US dollar. This helps save foreign exchange and strengthens their currencies," he added.
Jawad added that the Pakistan government must form a task force with representatives of the commerce ministry and other financial bodies to prepare a list of countries with which Islamabad could consider trading in rupees, according to The Express Tribune.
Mian Anjum Nisar, former president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said, "Our economy is at the crossroads in the wake of a dramatic drop scene of the US-led war in Afghanistan with the return of Taliban back to power, but in this crisis, Pak-Afghan trade can be multiplied manifold if the irritants are removed and traders are facilitated."
He also said that Afghanistan's economy shrank nearly 1.9% in 2020 and it has the second-lowest per capita income in the region.
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