Islamabad: In a significant move to streamline trade processes and reduce currency conversion costs, China has urged Pakistan to initiate a pilot project for using the Renminbi (RMB) in the Gwadar Free Zone. This initiative aims to facilitate trade settlements and enhance economic interactions between the two nations, focusing on the development and operational efficiency of Gwadar Port.

According to Zameen.Com, the proposal for the RMB pilot project was presented during the 7th Joint Working Group (JWG) meeting on Gwadar under the China-Pakistan Economic Corridor (CPEC) framework. The meeting highlighted the strategic importance of Gwadar Port in boosting Pakistan’s trade flows, particularly through the facilitation of public sector bulk cargo, which has significantly contributed to the port’s operational capabilities and local job creation.

Discussion points included the transformative potential of Gwadar as a major hub for Afghanistan’s transit trade and as a prospective ocean fishing transshipment hub, which could dramatically reduce transportation costs. The Chinese and Pakistani representatives discussed key infrastructural needs such as a stable water and electricity supply, which are crucial for the port’s operations.

Security concerns were also addressed, with China emphasizing the need for enhanced measures to ensure the safety of the port and surrounding areas. Both sides agreed on the importance of developing the Free Zone and expanding industrial cooperation, with potential advancements in the mining industry discussed.

Additionally, the ongoing construction of the New Gwadar International Airport (NGIA), expected to be completed by August 2024, was recognized as a pivotal element in supporting the port’s expanding operations. Both countries reiterated their commitment to overcoming logistical and security challenges to realize the full potential of Gwadar in regional trade and economic development.