SBP sees Pak-China trade with use of own currencies

KARACHI: Governor of State Bank of Pakistan, Ashraf Mehmood Wathra, said Friday for taking more benefits from China-Pakistan Economic Corridor (CPEC) both the countries should trade in their own currencies.


Wathra was talking with media after flag hosting ceremony at main SBP Building in Karachi.

He said Pakistani banks have made arrangements for the businessmen to open L/Cs in China.

To a question about devaluation of Chinese currency, he said Chinese economy has an ideal rate of growth and can easily absorb the devaluation and that there will be still more exports.

Referring to next five-year financial strategy named SBP Vision 2020 which he announced at the national flag hosting ceremony, the Governor said the Central Bank has been making five-year financial
strategy after every 5-years. But, he continued, for making this plan more productive through its true implementation SBP has included certain safeguards so that the five-year financial plan might not
disturb with any change of SBP leadership over the period.

“Last five year financial strategy also good but could not produce the desired result due to change of three SBP Governors over the period,” he elaborated.

He said under the SBP Vision 2020, the focus would be on financial inclusion.

He regretted that of total population of more than 180 million, only 34 million people are included in financial system. However, the launching of branchless banking brought around eight million new
account holders and more are expected in the coming days.

He emphasized the need for more efforts and incentives to encourage the people for their savings and be a part of the financial system.

SBP Governor urged the local media to be responsible while reporting on economic and financial matters of the country.

“Some times, we are embarrassed abroad when we have to clarify negative queries only because of irresponsible reporting of our media,” he contended.

He informed the media that SBP communication team tries its best to forward information to media and the public in Urdu language.

However, this could not be done at a large scale as most of the material /information related to economy and finance in the world is in English.