PKR Replaces USD for Trade Transactions in Gwadar Free Zones

PKR Replaces USD for Trade Transactions in Gwadar Free Zones
In a significant development, the Federal Board of Revenue (FBR) has announced that business transactions between the Gwadar Free Zone and the tariff area will now be allowed in Pakistani rupees (PKR) instead of US dollars (USD). This decision is aimed at protecting trades from the fluctuations of the dollar and is in line with the federal budget 2024-25 .

The Gwadar Free Zone, a key component of the China-Pakistan Economic Corridor (CPEC), has been designated as a special economic zone to promote trade and industrial activities in the region. The zone is expected to attract significant investment and generate employment opportunities for the locals .

The FBR’s decision to allow transactions in PKR is expected to facilitate trade between the Gwadar Free Zone and the tariff area, which includes Pakistan’s markets and industries outside the jurisdiction of the free zone. This move is seen as a positive step towards promoting trade and economic growth in the region .

Companies operating in the Gwadar Free Zone will now be able to conduct trade transactions with the tariff area in PKR, which is expected to reduce the risk associated with dollar fluctuations. This decision is also expected to increase trade volumes and contribute to the overall economic growth of the country

Overall, the FBR’s decision to allow PKR for trade transactions in the Gwadar Free Zone is a significant development that is expected to promote trade, investment, and economic growth in the region.

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