Decentralization of the US dollar commences in Gwadar Free Zones
Published on: June 25, 2024.
Filed under:
Rewritten Article:
De-Dollarization Commences in Gwadar Free Zones, Boosting Trade in Pakistani Currency
In a significant milestone, de-dollarization has taken off in the Gwadar free zones, following the recent decision in the federal budget 2024-25. This decision allows all companies operating within the Gwadar Free Zones to conduct their trade transactions using Pakistani currency instead of US dollars.
The amended SRO.805 (I)/ 2024 Customs Rules 2001 has eliminated the conditions for dollar transactions between the Gwadar Free Zone and the tariff area (Pakistan’s markets and industries outside the jurisdiction of the Gwadar Free Zone). As a result, both the Gwadar Free Zone and the tariff area will now engage in business using the Pakistani currency. This move aims to safeguard trades on both sides from fluctuations in the value of the dollar.
According to an official from Gwadar North Free Zone company, “Agven Private Limited,” the procedural changes are being incorporated into the e-custom clearance system, “Web Based One Custom” (WeBOC). In the coming days, a high-level meeting involving the Gwadar Port Authority, Pakistan Customs, FBR, and other stakeholders will be held to establish a more effective mechanism and address the necessary procedures.
“This development is like a breath of fresh air for millions of Pakistani traders operating within the tariff areas. With this new development, they will be encouraged to expand their trade with companies in the Gwadar Free Zone areas. Consequently, both the traders in the tariff areas and the Gwadar Free Zones will witness significant business growth,” he added.
The China Overseas Port Holding Company (COPHC) officials have welcomed this development as a milestone moment in the advancement of the Gwadar Free Zones.
Source
