Pakistan is set to initiate a pilot project allowing export-oriented enterprises in the Gwadar Free Zone to conduct transactions in Chinese renminbi (RMB).Â
This proposal, which seeks to attract greater foreign investment, includes the flexibility for businesses to maintain accounts in either US dollars or RMB without the constraints of foreign exchange controls.
According to a news report, this development was discussed at 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 as a pilot scheme specifically for the Gwadar Free Zone.Â
In response to the evolving economic landscape and to promote Gwadar’s role in regional trade, the Pakistani government has strategically redirected 60% of its maritime cargo traffic from Karachi to Gwadar Port.Â
Additionally, COPHC has proposed allowing the Gwadar Port to handle seafood transshipments from international waters, aiming to establish Gwadar as a regional hub for seafood logistics.Â
The CCOCIP directed the Ministry of Maritime Affairs to collaborate closely with the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Commerce Division, and Finance Division to refine the details of these proposals.Â
The committee also emphasized the need to consult with the Balochistan provincial government due to the sensitive nature of fishing, which is a significant livelihood in the region.
The Ministry of Maritime Affairs has been tasked to provide a detailed path forward, addressing these challenges to ensure that the developments align with both local and national economic strategies.
Security for Chinese nationals working on various projects across Pakistan, particularly those related to the China-Pakistan Economic Corridor (CPEC), remains a priority. There have been consistent requests for more streamlined and effective standard operating procedures to ensure their safety.Â
