The federal government has directed Water and Power Development Authority (Wapda) to dump financing in Dollar and seek further financing related to water and power department in RMB(Yuan). The decision, has been endorsed by the federal cabinet however, Wapda has to consult Finance Division, Economic Affairs Division and Planning, Development and Reform Division for finalisation.
Chinese are willing to provide financing in RMB (Yuan) for water sector projects. In this regard Ministry of Water Resources has been directed to explore possibility of seeking Chinese financing (in RMB rather than US dollars) in consultation with Finance Division, Economic Affairs Division, Planning, Development & Reform Division.
This is another step towards decreasing the dominance of US dollar in the international trade market. Many countries including Iran China Russia and Zimbabwe have limited the use of US dollar while the European Union is deliberating switching to Euro for international trade agreements after US threatened to slap sanctions on European firms working in Iran