The Drug Regulatory Authority of Pakistan (DRAP) encouraged the government to make import agreements in Chinese currency (RMB), particularly for raw materials needed to produce drugs and medical equipment, on Friday to prevent any disruptions in the nation's pharmaceutical output.
Asim Rauf, the chief executive officer of DRAP, described the strategy during a meeting with the Pakistan Pharmaceutical Manufacturers' Association (PPMA), saying it would help to lessen any interruptions brought on by the nation's currency shortage.
Rauf warned that if trade in Chinese money is not done, the government's severe prohibitions against imports will cause the nation's pharmaceutical production to cease.
Pakistan is experiencing an unprecedented foreign exchange crisis, according to Arif Habib Commodities CEO Ahsan Mehanti in an interview with The Express Tribune. Production losses will result from the lack of foreign exchange at a time when our reserves are at a historic low of $3.7 billion.
"RMB can be supplied by the Chinese government against an arrangement made by DRAP," he said, adding that Pakistan could also reach such agreements with both Russia and China to pay for imports. Russia and China had similar agreements with regard to the supply of oil.
Ismail Suttar, the president of the Lasbela Chamber of Commerce and Industry, believes that the problem with arranging the money will be the same as it was with the dollars. But having more options is usually preferable, he added.
But rather than putting out fires, he continued, "we should assemble a team entrusted with achieving one overarching goal: grow the basket of products and exports through these new products. That is the need of the hour." In addition, there needs to be an industrial emergency with utilities being subsidised for the sector.
"Pakistan will easily be able to resolve the current balance of payment problem once its mineral resources are transformed into marketable chemicals (BOP). This will further improve.
Farazur Rehman, the president of the Korangi Association of Trade and Industry (KATI), concurred that the remedies needed to be long-term.
"Decision-making in times of war and peace demands various strategies. Any plans that can be made to address the fact that we don't currently have enough foreign currency are welcome. However, it is crucial that the government also take long-term solutions into account, according to Rehman.
