Pakistan and China to use currency exchange in commerce

ISLAMABAD: Pakistan and China agreed Sunday to exchange their local currencies to reduce their dependence on the US dollar.

The foreign exchange contract between the State Bank of Pakistan (SBP) and the People's Bank of China (PBOC) had already been extended for a period of three years in the respective local currencies.

A currency swap, also known as cross currency swap, is an off-balance sheet transaction in which two parties exchange principal and interest in different currencies.

The joint statement issued by Prime Minister Media Wing said the two countries had expressed their satisfaction with the implementation of the currency conversion agreement and reaffirmed the need to further strengthen the cooperation ties of the financial and security sectors. between the two countries.

Pakistan and China reaffirmed their full agreement on the future trajectory of the Sino-Pakistan Economic Corridor (CPEC) and the timely completion of its ongoing projects.

The two countries also renewed their commitment to make joint efforts to realize its full potential, with a focus on socio-economic development, job creation and livelihoods, as well as Accelerated cooperation in the areas of industrial development, industrial parks and agriculture.

Both parties reviewed the early harvest phase of the CPEC and expressed their satisfaction with the rapid progress made in all areas, particularly in the energy sector.

During the visit, the two parties also signed 15 agreements / memoranda of understanding on various bilateral issues.

The two sides agreed to strengthen the Sino-Pakistan strategic cooperation partnership in all weather and strengthen the Sino-Pakistani community of the future shared in the new era, in accordance with the principles set out in the treaty of friendship , cooperation and good neighborliness. The People's Republic of China and the Islamic Republic of Pakistan signed in 2005, according to a joint statement by the prime minister, Media Wing.

Prime Minister Imran Khan, making his first five-day official visit to China, praised President Xi Jinping's visionary Belt and Road (BRI) initiative, which aims to strengthen regional and international connectivity.

Both parties reaffirmed that the BIS represented a model of international win-win cooperation and offered new opportunities for economic rejuvenation and prosperity for all countries.

Both parties agreed to instruct the CPEC's Joint Cooperation Committee (CPEC) to explore new areas of cooperation. In this regard, it was decided that the eighth session of the PCB should be held in Beijing before the end of the year.

To further expand cooperation in the framework of the CPEC, the two parties announced the creation of a working group on socio-economic development, to assist in the realization of livelihood projects in Pakistan.

Pakistan and China both reaffirmed their commitment to the CPEC and agreed that it was a win-win venture for the entire region and that it would bring prosperity and prosperity to the country. regional development through improved connectivity.

They agreed to discuss issues related to the CPEC, including the China-Pakistan Strategic Dialogue, Political Consultations and the CCC.

Recognizing the importance of Gwadar as an important node of interregional connectivity and central pillar of the CPEC, both parties agreed to accelerate the progress of the port and its ancillary projects.

Both sides rejected growing negative propaganda against the CPEC and expressed their determination to protect their projects from all threats.

Pakistan has recognized the immense contribution of Chinese personnel working on various economic projects in Pakistan. The Chinese side welcomed the measures taken for the safety of its personnel and its projects in Pakistan.

Expressing satisfaction with the historical development of Sino-Pakistani relations and the great progress made, the two sides reaffirmed that the friendship between Pakistan and China stands the test of time, despite the changes in national environments, regional and international.

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Both sides will continue to view Sino-Pakistan relations in a long-term strategic perspective.

The Chinese side reiterated that relations between China and Pakistan are still a top priority in its foreign policy. China appreciates Pakistan's continued and resolute support for China's fundamental problems and reaffirms its support and solidarity with Pakistan in safeguarding its sovereignty, independence, territorial integrity and security.

He appreciates Pakistan's important role in promoting peace, stability and security in the region, as well as efforts to peacefully resolve all outstanding issues with its neighbors.

The Pakistani side stressed that relations between Pakistan and China were the cornerstone of its foreign policy and that friendship with China represented a national consensus and the common desire of all Pakistanis.

Pakistan commends the support and assistance provided by the Government and the Chinese people in Pakistan as part of its economic development. He unequivocally defends the policy of a single China and supports all efforts by the Chinese government to achieve national reunification.

According to the joint statement, both parties agreed to maintain frequent exchanges of visits and meetings at the level of leaders and to continue to hold bilateral meetings between their leaders on the margins of major conferences and multilateral events.

Both sides agreed to further strengthen the links between their legislative bodies. China welcomed the establishment of Sino-Pakistan friendship groups in the Pakistani Parliament.

The two sides agreed to establish the mechanism for the strategic dialogue between the China-Pakistan foreign ministers and to rename the former strategic dialogue at the level of deputy foreign ministers in political consultations. They also agreed to continue exchange programs relating to the training of diplomats.

Both sides noted the growing volume of bilateral trade and agreed to take concrete steps to address the trade imbalance. These would include the exchange of trade missions, the expansion of market access for agricultural and ICT products and the simplification of customs, quarantine and phytosanitary procedures.

The Pakistan-China bus service will be launched today

In this context, both sides agreed to conclude as soon as possible the second phase of the China-Pakistan Free Trade Agreement and to continue discussions on the Pakistan-China Trade Agreement. services.

The two sides agreed to strengthen economic cooperation by making full use of existing cooperation agreements, such as the China-Pakistan Business Council, consisting of the China Council for the Promotion of International Trade (CCPIT) and the Chamber of Commerce and Trade. Federation of Pakistan Industry (FPCCI), and those between industry and the two countries' stock exchanges.

Both sides agreed to hold the next round of the Joint Economic Commission early next year.

Both parties attached importance to the friendly cooperation between the People's Bank of China and the State Bank of Pakistan (SBP).

They expressed satisfaction with the implementation of the currency conversion agreement and reaffirmed the need to strengthen the cooperation links between the financial and banking sectors between the two countries.

Both sides noted with satisfaction that Chinese and Pakistani banks are operating in both countries. Both sides agreed to strengthen cooperation on tourism promotion.

The two sides agreed to further strengthen defense cooperation, maintain high-level visits and exchanges at different levels between the relevant departments of the two armed forces, to fully utilize the Sino-Pakistan consultation mechanism on defense and security and deepen cooperation in areas such as military exercises. , cooperation in the field of training, exchanges of personnel and cooperation in the field of equipment and technologies.

The two sides agreed to further strengthen their cooperation against the "Three Woes" ​​of extremism, terrorism and separatism. Both parties will continue to regularly use their existing mechanisms for strategic dialogue and counter-terrorism and security consultations to further promote communication and cooperation in relevant areas.

The Chinese side expressed its support for Pakistan's commitment and efforts in the fight against terrorism, assured Pakistan of its support in the implementation of its counter-terrorism strategy and praised the enormous sacrifices made by the Pakistani nation in the fight against terrorism and Pakistan's immense contribution to international peace and security through its achievements and successes.

The Chinese side acknowledged Pakistan's efforts to actively strengthen financial regulation in the fight against the financing of terrorism, and called on all parties concerned to consider Pakistan's efforts in the fight against terrorism in an objective and fair manner.

The Pakistani side has reaffirmed its support for the Chinese side for the safeguard of its sovereignty and security, as well as for the fight against separatism, terrorism and extremism, including the East Turkestan Islamic Movement (ETIM). ).

The two sides agreed to further strengthen the political dialogue and strategic communication on maritime issues and expressed their satisfaction with the maritime cooperation dialogue between Pakistan and China. They agreed to continue their close co-operation in the fields of navigational safety, the maritime economy, the exploration and use of marine resources, marine scientific research and the protection of the environment marine.

Both parties agreed to broaden and deepen their collaboration, including in the areas of new and emerging technologies, nanotechnologies, biotechnologies and ICTs, which could contribute to the improvement of of life through their applications in the fields of health, agriculture, water, energy and food security. .

The two sides agreed to actively promote the 2012-2020 space cooperation plan between the National Space Administration of China (NASA) and the Pakistan Space and Upper Atmosphere Research Commission (SUPARCO). Expressing satisfaction with the launch of the Pakistan Remote Sensing Satellite (PRSS) earlier this year, both sides agreed to further enhance bilateral cooperation in space technology applications.

The two sides agreed to strengthen their cooperation in the area of ​​inhabited space and the Chinese Space Engineering Bureau (CMSEO) and SUPARCO will sign a framework cooperation agreement.

Both parties reaffirmed their commitment to the purposes and principles of the Charter of the United Nations, the promotion of international peace and security and the safeguarding of the contemporary world order and the international system centered on the United Nations. United.

China appreciates Pakistan's peace efforts through dialogue, cooperation and negotiation, on the basis of mutual respect and equality, and supports Pakistan's efforts to improve relations between Pakistan and the United States. India and to settle outstanding disputes between the two countries. Pakistan has supported China's active participation in the South Asian Association for Regional Cooperation (SAARC) Platform. The two sides agreed to strengthen cooperation on the Afghan issue and to support the Afghan-led and Afghan-led peace and reconciliation process.

China welcomes the close coordination between Pakistan and Afghanistan under the Plan of Action for Peace and Solidarity between Afghanistan and Pakistan (APAPPS) in order to strengthen cooperation between the two countries in all areas.

Both parties reaffirmed their commitment to non-discriminatory multilateral arms control and non-proliferation efforts. They noted with concern the continuation of double standards in the application of non-proliferation norms and procedures and called for policies that respect the rule of law and old rules. China appreciates and supports the steps taken by Pakistan to strengthen the global non-proliferation regime. In this context, China supports Pakistan's engagement with the Nuclear Suppliers Group and welcomes its endorsement of the NSG guidelines.

Recalling the commitments made by all States for the implementation of General Assembly and Security Council resolutions relating to international terrorism, both parties stressed the need for all States to avoid any politicization. the UN sanctions regime and the work of the Financial Action Task Force (FATF). Both sides also reiterated the need to develop the text of the General Convention on International Terrorism on the basis of consensus.

Both sides agreed to strengthen coordination and cooperation on international and regional issues of common interest. and maintain close communication and coordination within international and regional organizations and mechanisms such as the United Nations, the Shanghai Cooperation Organization (SCO), the SAARC, the Asia-Pacific Meeting, and Europe (ASEM), the Regional Forum for ASEAN (ARF) and the Conference on Interaction and Confidence Building Measures in Asia (CICA). China welcomed Pakistan's membership in the SCO and enjoyed its active participation in the SCO summit in Qingdao in June 2018.

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