Saturday, April 20, 2024

Rupees will be used in trade between Pakistan and Afghanistan

Pakistan can trade in rupee with Afghanistan, which can reduce the country’s rising current-account deficit.

Finance and Revenue Minister Shaukat Tarin told the Senate Permanent Finance Committee that the commerce with Afghanistan was now in a state of rupee when the new administration intended to save its dollar reserves.

Pakistan Business Forum, Vice Chairman Ahmad Jawad, commented on the development that a positive effort was made to deal with rupees for Pakistani importers as well.

“The countries buying from each other under a currency swap arrangement pay for each other at a predetermined exchange rate in their own currencies instead of trade in US dollars. This helps to preserve and consolidate foreign exchange.”

He added that the government must set-up a task force to develop a list of nations with which Pakistan may think about dealing in rupees together with members of the Ministry of Trade, the State Bank of Pakistan and the Pakistan Federation of Chambers of Commerce and Industry (FPCCI).

“While the dollar inflow to Pakistan is negative, it is not a significant quantity,” said Atif Zafar, a top-line economics securities operator.

In addition, the diplomatic relationship with Afghanistan will strengthen, which he stressed at present was more vital. “At an economic time when the economy sorely needs to boost growth,” stated Mian Anjum Nisar, former FPCCI president, in which Pakistan may capitalise on the current circumstances.

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