Pakistan’s State Bank Green Lights Yuan-Based Trade With China

SPUTNIKNEWS – January 3, 2018: The State Bank of Pakistan (SBP) has announced that all arrangements for using the Chinese currency for trade and investment are already in place.

The central bank of Pakistan has given permission for the Chinese yuan to be used for investment and bilateral trade deals, which will eventually replace the dollar in Pakistan-China trade.

The increase in trade and investment with China under the China-Pakistan Economic Corridor (CPEC) makes it easier for Pakistan to see that CNY-denominated trade with China will increase significantly and will provide with long term benefits for both the countries.

“SBP has already put in place the required regulatory framework which facilitates use of CNY in trade and investment transactions,” the press release of the central bank stated.

Pakistan and China have also agreed to establish and improve cross-border credit systems and financial services. In the near future plans strengthening currency swap arrangements and the establishment of a bilateral payment and settlement system will also take place.

Hence with the central bank’s approval this cooperation will take on another dimension as it means that Pakistani and Chinese banks will, in the course of time, be able to open import letters of credit in rupees and yuan.

Pakistan will be able to pay for imports from China in yuan rather than in dollars, and Chinese companies investing in CPEC projects will bring in yuan-denominated funds to Pakistan and remit back their profits and dividends also in yuan instead of dollars or other foreign currencies.

“The SBP, in the capacity of the policy maker of financial and currency markets, has taken comprehensive policy related measures to ensure that imports, exports and financing transactions can be denominated in yuan,” Dawn news reported quoting the bank’s statement.

“The dollar may remain the most dominant medium of exchange for the foreseeable future. But if Islamabad and Beijing can materialize their dream [to settle bilateral trade and investment transactions in rupees and yuan], we can reduce our dependence on the greenback gradually over a long time,” the head of a large Pakistani bank told Dawn news in a comment.

The banker also said that once proper developments are made the free flow of capital and cross-border transfer of lawful funds between the two countries would become much easier, curbing the need for more complex centralized international clearing systems in New York and London. Link: Read Complete Article


US Suspends Security Assistance to Pakistan – State Department

SPUTNIKNEWS – January 4, 2018: The US will no longer transfer certain pieces of military equipment and security-related financial assistance to the Pakistani armed forces in the wake of US accusations that Islamabad provides safe haven for terrorist groups who plot attacks on US troops in Afghanistan.

“We can confirm that we are suspending security assistance to Pakistan at this time,” said Heather Nauert, spokeswoman for the US State Department.

“The United States will not deliver military equipment or provide security assistance to Pakistan unless required by law,” the spokeswoman added. Until the Pakistani government proves without a doubt decisive action has been taken against terrorist groups in Pakistan, the official said, Washington will consider Pakistan to be “destabilizing the region and also targeting US personnel.”

Earlier in the week, Nikki Haley, US ambassador to the United Nations, announced that the US would cut funding to Pakistan by $255 million. “Pakistan has played a double game for years,” Haley told reporters in New York on Tuesday. “They work with us at times, and they also harbor the terrorists who attack our troops in Afghanistan,” the ambassador noted. “That game is not acceptable to this administration.”

A US official said Thursday that in fact more than $255 million in aid would be suspended.  Link: Read Complete Article


‘History taught us not to trust US blindly’: Pakistani FM slams Trump after abrupt aid cut

RT – Donald Trump’s policies have provoked a furious response from Pakistan’s foreign minister. He blasted the US president for claiming Islamabad has been an unreliable partner in the War on Terror.


US & Israel target Iran, Pakistan and other Muslim countries for their resources – Erdogan

RT – January 5, 2018: Turkey’s leader has accused the US and Israel of meddling in the affairs of Iran and Pakistan, as well as those of other Muslim countries, and are driven by the desire to grab their natural resources.

“We cannot accept that some countries — foremost the US, Israel — to interfere [sic!] in the internal affairs of Iran and Pakistan,” Erdogan told reporters in Istanbul on Friday, AFP reports. On Tuesday President Donald Trump tweeted support for the protests “against the brutal and corrupt Iranian regime” which erupted last week.

The alleged US and Israeli interference is primarily driven by the desire to make “the plentiful underground riches in all these countries their own resources,” Erdogan claimed. The two countries, as well as other western states, target primarily Muslim nations, “turning the people [there] against each other,” he added. The disastrous results of such meddling can be seen in Syria, Iraq Palestine, Egypt and other countries, the president said.

“It’s the same thing in Libya, Tunisia, Sudan and Chad. Countries where unrest is sown are Muslim countries. These countries have their wealth that belongs to them,” Erdogan said. “The whole humanity must know this and change its attitude.”

Erdogan’s statements echoed the official position of Tehran, which accused the US, Israel and Saudi Arabia of fueling protests in the country. Iran’s Public Prosecutor Mohammad Jafar Montazeri said on Thursday that the “plot” to trigger unrest had been masterminded some four years ago by an American national and former CIA operative identified as Michael Andrea, along with an unnamed Mossad-affiliated agent. Saudi Arabia, according to the prosecutor, paid the expenses of the alleged plotters.

Also this week, Iran’s Ambassador to the UN, Gholamali Khoshroo, condemned the American administration’s “acts of intervention in a grotesque way in Iran’s internal affairs.” Earlier this week, the US envoy to the UN called for an “urgent” UN Security Council (UNSC) to discuss the situation in Iran. The meeting is scheduled for Friday. Link: Read Complete Article


US Decides to Suspend Multimillion Military Aid to Pakistan

SPUTNIKNEWS – January 1, 2018: The US authorities decided to withhold $255 million in military aid to Pakistan after US President Donald Trump’s critical remarks about the south Asian country, local media reported.

The United States does not plan to spend the $255 million in [Fiscal Year] 2016 Foreign Military Financing for Pakistan at this time … The president has made clear that the United States expects Pakistan to take decisive action against terrorists and militants on its soil, and that Pakistan’s actions in support of the South Asia Strategy will ultimately determine the trajectory of our relationship, including future security assistance,” a national security official told the Fox News broadcaster on Monday.

On Monday, Trump wrote on his Twitter page that the United States had allocated millions of dollars in aid to Pakistan, while the latter had not contributed to countering terrorism and provided safe harbor to terrorists from Afghanistan. The US president vowed to stop providing financial aid for Pakistan.

The United States has foolishly given Pakistan more than 33 billion dollars in aid over the last 15 years, and they have given us nothing but lies & deceit, thinking of our leaders as fools. They give safe haven to the terrorists we hunt in Afghanistan, with little help. No more! Link: Read Complete Article


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