Standard Chartered is conducting a roadshow in Pakistan to inform local businessmen that hurdles to trading, between Pakistan and China, in local currencies have been razed. Up until now, China and Pakistan were trading in dollars causing unavoidable hurdles when it came to banking transactions. Chief Executive Officer of Standard Chartered Pakistan Mr. Shazad Dada said they had a fruitful meeting with the State Bank of Pakistan on Thursday.
While Standard Chartered Bank is conducting this roadshow it is worth mentioning that the two countries are yet to set up bank branches in each other’s countries. Standard Chartered operates in China and Pakistan along with several other countries however. With Pakistan as the latest country, China now is in agreement with a total of eight countries conducting trade with them in local currencies. The other countries include Hong Kong, UAE and Qatar.
Carmen Ling, the bank’s delegation lead to Pakistan said that the infrastructure had been laid down for commencing trade in local currencies,
Now, it all depends on how fast the requisite information is disseminated to businessmen.
Over 60% of Standard Chartered’s market across Middle East, Asia and Africa set to gain immensely from this initiative. The initiative, said Ling, could potentially facilitate financing Pakistan’s key infrastructure projects all the while encouraging cross-border economic and trade partnerships.
China has been conducting roadshows for their local businessmen since renminbi was included in International Monetary Fund’s (IMF) Special Drawing Rights (SDR) list of global currencies. This became effective from October 1, 2016.
Given China’s immense financial investments in Pakistan, this comes as welcome news for the local traders as well as those trading goods with Pakistan in the neighbors. Not only will this initiative provide for cheaper trade initiatives, it also stands to increase trade as a whole, between Pakistan and China, and several other countries. With the construction of Gwadar Port, this initiative should provide a significant boost to Pakistan’s economy.You can follow us on Facebook, Twitter, or Google+ for more updates. Otherwise fill in the subscription box above, or subscribe to our RSS Feed.