ISLAMABAD: Iftikhar Ali Malik, President SAARC Chamber of Commerce and Industry Sunday hailed the government’s decision to import crude oil from Russia in currencies of friendly countries as mutually agreed by the two countries.
Talking to a delegation of industrialists and traders led by Muslim Khan Buneri here, Malik said it’s a good omen that Pakistan will pay in the currencies of friendly countries, which, he added, will definitely ease dollar pressure on either side and help pave the way for further strengthening the existing economic cooperation and bilateral relations. He said agreements between both sides will pay dividends in the days to come.
He appreciated that Islamabad wants to import 35% of its total crude oil requirement from Russia. He said Pakistan depends on oil from the Gulf countries, mainly due to close political and friendly ties, which often extend facilities like deferred payments, and that route is cheaper logistically given its proximity to the Strait of Hormuz.
Iftikhar Ali Malik said recent decision of the government is good for direct settlement and clearing in RMB between China and Pakistan which will help balance greatly the possible trade fluctuations caused by changes in the US dollar. He said RMB clearing can be fast-tracked for the two countries to further deepen industrial cooperation in financing and purchasing.
He said the trade volume of Belt and Road countries reached 11.6 trillion Yuan in 2022. If RMB clearing and settlement is fully encouraged, trade efficiency in countries along the Belt and Road will improve, he added.
He said as inflation and the energy crisis in Europe and the US have eroded market confidence and China’s economy is the same size as the EU’s, the RMB may become a future safe haven for investors. He said since 2006, annual trade between Pakistan and China has averaged 17.61 billion US dollars. He said the Bank of China and State Bank of Pakistan accord will support cross-border transactions. — APP
