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Recommends use of Yuan (Chinese Currency) for trade with Afghanistan & CAR

Karachi, June 14, 2022: PAJCCI’s legacy to engage all stakeholders was reflected in a meeting held in Lahore which was attended by large number of business community from diversified industries including Agri products, representatives of Lahore, Sargodha, Gujrat, Gujranwala, Jhelum, Bahawalpur & Faisalabad Chamber of Commerce & Industries, Pakistan Coating Association, Pakistan Carpet Manufacturer & Export Association and All Pakistan meat exporters & Processers association.

Zia Sarhadi, VP PAJCCI chaired the session and informed the forum about continuous efforts of PAJCCI and its Chairman, Zubair Motiwala and Co-Chairman, Khan Jan Alokozai; both of them have not only provided insights to the government officials but have taken the concerns of business community to the level of respective premiers.

Secretary General PAJCCI; Faiza, shared the quarterly updates and recent movement in development of Barter Trade mechanism with Afghanistan. She informed the house that joint house at 9th FGD meeting has agreed upon all components of barter trade mechanism, a project monitoring matrix has been designed with action items, responsibility and timelines which will have oversight by AICC and PAJCCI as lead chamber. In coming weeks final barter trade mechanism will be presented to both governments for formal approval. The lead time is 90 days keeping in view all the existing trade barriers like SRO for TAD, Sales tax refund and duty draw back claims is issued for land route and barter trade, Cross stuffing and use of local containers to offset high cost charged by international shipping lines, further extension of E-Form & EIF waivers, special module in all regulatory systems for barter trade and its connectivity with PAJCCI online portal.

In addition, formation of Special purpose vehicle for the transaction management of barter trade is imperative with facilitation by State Bank of Pakistan. PAJCCI will function as oversight and monitoring entity along with dispute resolution and arbitration with both governments support where necessary.

Forum was also informed that State Bank of Pakistan has now provided written process for managing third party payments and bank counters at various border crossings which is being shared with all concerned. The active role of Afghan inter-ministerial committee was also highlighted & continuous expert support of Mr. Mohammad Sadiq, SAPM and Chairman AICC. Ministry of Commerce has already amended EPO & IPO to include barter trade and special module for regulatory system is already under development.

The house endorsed the joint press release of Zubair Motiwala; Chairman PAJCCI, Khan Jan Alokozai; Co-Chairman PAJCCI, Mohammad Sadiq, SAPM and Chairman AICC, and Maria Kazi, Joint Secretary, Ministry of Commerce which made it very clear that all existing trading options will remain operational and barter trade is one more tool to enhance trade and economic activity between two countries. They categorically rejected baseless rumors that all other trading options will cease to function once barter trade is notified. Such anti-economic elements do not want strong, deep & sustainable trade and economic relationship between Pakistan & Afghanistan. It was unanimously agreed that business community on both sides will work together and put an end to all unscrupulous and parallel economy agents.

The house jointly recommended that strong regional trade will bring prosperity to both Pakistan & Afghanistan, it requires reducing dependence on USD trading and it shall be replaced by PKR trading. A regional currency like Euro shall be considered and trading in Chinese currency can be immediately started.

Delegates appreciated the efforts of PAJCCI in resolving the issues while arranging various engagement events of the stakeholders.

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