Banks of both countries move to activate correspondent accounts for transactions in Pakistani rupees and Kazakh tenge.
ISLAMABAD, July 10: Pakistan and Kazakhstan have taken a significant step toward strengthening bilateral financial cooperation by officially establishing exchange rates between their national currencies, a move expected to facilitate trade, investment, and financial transactions between the two countries.According to the Embassy of the Republic of Kazakhstan in Pakistan, the initiative was implemented in collaboration with the National Bank of Kazakhstan and the State Bank of Pakistan.
On July 8, the National Bank of Kazakhstan announced the official exchange rate of the Kazakh tenge at 1 KZT = 1.68 Pakistani rupees (PKR), while the State Bank of Pakistan established the official exchange rate of the Pakistani rupee at 1 PKR = 0.59 Kazakh tenge (KZT).The embassy said the development marks an important milestone in enhancing financial connectivity and promoting the use of national currencies in bilateral transactions.To operationalize the initiative, leading commercial banks from both countries, including Kazakhstan’s Bank CenterCredit and Freedom Bank, along with Pakistan’s Meezan Bank, are working to activate previously established correspondent banking accounts in their respective national currencies.
Once operational, these correspondent accounts will enable individuals and businesses in both countries to conduct cross-border payments and settlements directly in Pakistani rupees and Kazakh tenge, reducing reliance on third-party currencies and making transactions more efficient.The initiative is expected to strengthen economic ties, facilitate bilateral trade, and create new opportunities for businesses and investors in Pakistan and Kazakhstan.
