Currency swap deal not benefitting Pakistan

PCJCCI chief says government responsible for educating traders

LAHORE: Pak-China Joint Chamber of Commerce and Industry (PCJCCI) President Shah Faisal Afridi stressed on the benefits of the currency swap agreements (CSA) and said that the governments of Pakistan and China should aim to educate traders.

He said this while welcoming a six-member Chinese delegation led by Zhangjiakou Shengyuon Leather Chemicals General Manager Zhu Ming Wei.



He said both governments need to disseminate information regarding this imperative agreement among their respective trade bodies and chambers of commerce and industry.



He was of the view that absolute execution of currency swap agreement with China can rectify the economic obscurity of Pakistan as bilateral trade between Pakistan and China is not getting anticipated benefits from this agreement. “The CSA signed in 2013 is treading on a vague trajectory with no destination at all.”

While explaining the importance of currency swap agreement, Afridi said that the deal was signed to prove as a timely antidote to the ailing two-way trade relations.



He said China is now the world’s second largest economy and largest exporter and the execution of this agreement was to facilitate domestic financial stability, therefore, proper execution is necessary.

Wei explained that China signed bilateral currency-swap agreement with 28 countries for providing liquidity and facilitating trade. He said that Pakistan and China’s currency-swap agreement had been executed for 3 years. “However, unfortunately Pakistan is not getting the required benefits,” he mentioned.

Published in The Express Tribune, February 19^th,  2016.

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