LEADING elements in the Pakistan business and finance communities had mixed reactions to Planning and Development Minister Ahsan Iqbal's decision to consider the use of the renminbi in bilateral trade.

Some said the use of renminbi as trading currency between two countries would go a long way in strengthening economic ties between the two countries, reported The Nation of Lahore.

Noted economist Salman Shah said the objective of the Currency Swap Arrangement (CSA) would promote bilateral trade and investment between the two countries in the respective local currencies. 

The execution of bilateral CSA was achieved through series of technical level team discussions between both central banks.

Not everyone agreed. Pakistan's Chamber of Commerce and Industry vice president Iftikhar Malik said without first fixing the trade imbalance with China, Pakistan would have little to gain.

The government, he said, would have to adopt a serious approach in improving exports to China in the framework of the South Asian Association for Regional Cooperation (SAARC). 

China must be encouraged to become an increasing large importer of goods from Pakistan, besides becoming producer of value-added goods in Pakistan.

Sardar Usman Ghani, leader of Lahore Businessmen Front, said the deal would reduce Pakistan's dependence on US dollar-dominated trade while strengthening the Pakistan rupee. 

Pakistan Industrial and Traders Associations Front (PIAF) chairman Irfan Iqbal Sheikh said that although Pakistan's economy is much smaller than that of China's in terms of GDP, trade, reserves etc, yet the CSA offers a huge potential for Pakistan's economy. 

Mr Sheikh urged the government to take serious actions to resolve the issues that are impediment to the implementation of the CSA.

Noted economist Ashfaq Hasan said that CSA is a good opportunity for Pak-China exporters and it could be an opportunity if all the stakeholders including Ministry of Commerce, Textile Industry, and exporters make appropriate plans by revisiting their priorities and hurdles hindering a move ahead in this direction.