Pakistani FM Qureshi
Pakistan's balance of payment crisis is over after Beijing’s assurance it would provide short-term financial relief to Islamabad, the country’s finance minister said on Tuesday.
The announcement came a day before an International Monetary Fund team is due to arrive in Islamabad to discuss a financial package for the country.
Addressing a press conference with Foreign Minister Shah Mehmood Qureshi, Finance Minister Asad Umar said that during Premier Imran Khan’s just-concluded visit to China, Beijing agreed to extend an economic relief package to Pakistan.
"Pakistan urgently needed $12 billion to bridge the gap of the current account deficit, and that gap was almost filled with the help of Saudi Arabia and China," said Umar, but gave no details of China's package.
The governor of Pakistan’s State Bank and Finance Secretary Arif Ahmed Khan will meet Chinese officials on Friday in Beijing to discuss the package, he added.
Pakistan on Monday announced an agreement with China to use Chinese currency for bilateral trade to end the burden of relying on U.S. dollars."China and Pakistan agreed to start trading in the yuan instead of the dollar," Fawad Chaudhry, minister of information, told reporters in Islamabad.This agreement, reached during the Pakistani premier’s current visit to China, would help Pakistan get rid of the dollar burden in $15 billion of bilateral trade, he added.Imran Khan’s four-day official visit to China is ending Monday.Over 1,200 arrested over blasphemy protests in PakistanThe move to Chinese currency would also help both countries replace the U.S. dollar for their transactions and investment in the multi-billion dollar China-Pakistan Economic Corridor (CPEC).This June, the State Bank of Pakistan formally allowed both public and private enterprises to use Chinese currency for bilateral trade and investment activities.The $54-billion CPEC project aims to connect China's strategically important northwestern Xinxiang province to the Pakistani port of Gwadar, Baluchistan through a network of roads, railways, and pipelines to transport cargo, oil, and gas.The economic corridor would not only provide China cheaper access to Africa and the Mideast but also earn Pakistan billions of dollars for providing transit facilities to the world’s second-largest economy.Lawyer of freed Christian woman in Pakistan flees to the NetherlandsUnder current foreign exchange regulations, the Chinese yuan (CNY) is an approved foreign currency for denominating foreign currency transactions in Pakistan, like other international currencies such as the U.S. dollar and euro.The State Bank of Pakistan has already put in place the required regulatory framework facilitating the use of the yuan in trade and investment transactions such as the opening of letters of credit and availing financing facilities.
Pakistan, China agree to trade in yuan
Pakistani authorities have launched a nationwide move against protesters involved violence and damage in last week's protests against the acquittal of a Christian woman accused of blasphemy, local media reported Monday.On Wednesday, the Supreme Court acquitted Aasia Bibi who had been sentenced to death by a district court in November 2010 for blasphemy against Prophet Muhammad.Police in the northeastern Punjab province arrested 1,100 suspects involved in rioting and damaging public and private property, according to English daily Dawn.Meanwhile, 120 people belonging to various groups were arrested in the capital Islamabad.On Saturday, the interior ministry ordered the provincial governments to arrest all people who were involved in the attacks on the police as well as those who damaged vehicles and public properties.Pakistan's slain religious scholar laid to restLife back to normal after protests end in PakistanChina says more talks needed on economic aid for Pakistan"State is concerned for the loss of citizen, we will leave no stone unturned to identify the source of vandalism and will stand for all the citizen who suffered from the people who vandalized property of innocent people," Interior Minister Shehryar Afridi said in a tweet."Pakistan has to rise and such anonymous forces will be unveiled," Afridi added.On Friday, the government reached an agreement with religious groups, including the newly-emerged Sunni group, Tehreek-e-Labbaik Pakistan (TLP) -- who had blocked the roads across the country and halted daily life -- to end protest.The religious groups agreed to call off the protest following government assurances of placing a travel ban on Bibi and no objection to a review petition against the verdict in the top court.The government also agreed with TLP to release all protesters who were arrested by the police during the violent protest.The move to release the suspects who damaged public property and attacked the police was largely criticized by the public on social media .In Pakistan, blasphemy against Islam or Prophet Muhammad is a criminal offense that can carry the death penalty. While the state has never executed anyone under the law, mere allegations have stirred mass protests and violence.China, Pakistan vow to safeguard economic corridor planChina, Pakistan ink agreements on bilateral cooperationPakistan, Turkey to sign free trade agreement 'soon'
Over 1,200 arrested over blasphemy protests in Pakistan
China's economic future is linked to Pakistan through the China-Pakistan Economic Corridor (CPEC), though which China hopes to gain access to the Arabian Sea.
Saudi Arabia last month announced a $6 billion financial package for Pakistan during Khan’s visit to the kingdom.
Beijing and Islamabad signed 15 agreements and memoranda of understanding during Khan’s visit, including one for using Chinese currency in bilateral trade in lieu of U.S. dollars.
"The use of local currencies in bilateral trade would benefit both countries, while China also offered subsidized foreign exchange rates when both countries trade in local currencies," Umar said.
Qureshi said that both countries agreed to upgrade the strategic dialogue to the foreign minister-level and strengthen cooperation in all fields, including defense and the economy.
China and Pakistan also agreed that prisoners of both countries will serve their remaining sentences in their respective countries, Qureshi added.