Karachi, May 29, 2012 (PPI-OT): In order to create awareness about the ongoing efforts of Government of Pakistan for having currency swap arrangements especially with regional countries, Ministry of Commerce and Trade Development Authority of Pakistan (TDAP) had organized a meeting today in TDAP Karachi. Officials of State Bank of Pakistan and leading exporters form all the different sector attended the meeting during which officials of State Bank briefed about the current currency swap arrangements and its mechanism with Turkey and China.
Mr. Zafar Mahmood, Secretary Commerce in his opening remarks stated that there is a need to boost bilateral trade between Pakistan and Turkey through effective utilization of the currency swap agreement which need speedy implementation which will contribute to bilateral trade with two countries.
Mr. Tariq Puri, Chief Executive added that Turkey is one of the important trading partners of Pakistan in the region and the close brotherly ties between the two countries and need to be leveraged through swap arrangements.
Mr. M Ali Malik, Director State Bank briefed the participants about the current mechanism of CSA with Turkey and it would be would be based on borrowing and lending arrangements between the Central Banks of the two countries.
The lenders will further be extended to the scheduled banks which will provide necessary financing to the traders in the two countries. He added the above arrangement was necessitated because there was no liquidity available with the two countries in terms of the local currencies and neither was such deposit base available.
State Bank official opined that the arrangement would help boost trade between the two countries as the same would not be constrained by shortage of foreign exchange (i.e. Dollars, and other hard currencies). It would also reduce our dependence upon dollars, which would reduce, indirectly, the pressure upon our foreign exchange reserves.
Dr. Mirza Ikhtiar Baig, Chairman Pak Denim; Mr. Irfan Sheikh, ex Chairman REAP; representatives of PRGMEA; PCF; PTA and others who attended the meeting appreciated the role of MoC/TDAP and State Bank of Pakistan for their facilitation for traders.
For more information, contact:
Trade Development Authority of Pakistan
5th Floor, Block A, Finance and Trade Centre, Shahrah-e-Faisal,
PABX: 92-21- 9206487-90