Pakistan and Belarus have agreed to implement a local-currency payment mechanism to facilitate bilateral trade, marking a step toward reducing reliance on the US dollar for cross-border transactions.
The agreement was confirmed by the Belarusian envoy to Pakistan, who also noted a significant increase in the number of Pakistani workers employed in Belarus, signaling a broadening of economic ties between the two nations.
The decision aligns with a growing trend among emerging markets to diversify settlement currencies amid persistent geopolitical fragmentation and sanctions risks.
By settling trade in national currencies, both countries aim to mitigate foreign-exchange volatility and reduce transaction costs associated with dollar-denominated trade.
This approach mirrors recent moves by other nations seeking to insulate their economies from Western financial systems.
Handelsavisen previously reported that Indonesia and Thailand reached a similar agreement to expand local-currency usage in bilateral trade and investment, underscoring a regional shift toward de-dollarization in Southeast Asia.