Pakistan has taken a significant step to streamline trade and investment in Gwadar by approving direct conversion between the Chinese renminbi (RMB) and the Pakistani rupee (PKR) for businesses operating in the Gwadar Free Zones.
The decision, approved by the State Bank of Pakistan, removes the earlier requirement for companies to convert foreign currency into US dollars before settling transactions in Pakistan. The move is expected to cut transaction costs, reduce exchange losses, and simplify cross-border trade, particularly for Chinese and regional investors.
Officials say the policy change will improve liquidity, ease operational challenges for firms in the Gwadar North and South Free Zones, and enhance Pakistan’s appeal as a regional trade and logistics hub. The reform also aligns with broader efforts to promote local-currency trade and strengthen economic cooperation under long-term regional connectivity initiatives.
The measure is being viewed as a practical step to boost investor confidence and accelerate commercial activity at Gwadar, a key gateway for Pakistan’s maritime trade.
