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| Bank of China allowed to begin operations in Pakistan |
The Bank of China (BoC) has been
allowed to commence banking business in the country, said the State Bank on
Monday.
This is the second Chinese bank
which has been allowed to operate in Pakistan.
Earlier, the Industrial and
Commercial Bank of China (ICBC) opened two branches in Karachi and Islamabad on
May 20, 2011. The ICBC provides various services including corporate finance,
investment banking, foreign deposits, project loans, and working capital loans.
“In Pakistan, the BoC aims to
provide specialised banking services to serve the financing needs of
China-Pakistan Economic Corridor (CPEC) related projects by leveraging on its
experience and global technology platform,” said the SBP.
The focus will be on providing
financial services for CPEC-related projects
Earlier in May, the State Bank had
issued a licence to BoC.
The BoC has complied with the
important regulatory and operational requirements necessary to commence banking
business in Pakistan.
The BoC is a subsidiary of China
Central Huijin, the investment arm of the Government of China.
The BoC is the 4th and 5th largest
global bank in terms of tier-1 capital and total assets, respectively. It is
listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
Globally, the footprint of BoC is
spread across 50 countries out of which 19 are located across China’s One Belt
One Road initiative.
“The BoC’s entry into Pakistan will
not only further strengthen the bilateral relationship of Pakistan and China
but will also represent growing confidence of international investors on the
country’s banking sector and the stable economic outlook,” said the SBP.
Habib Bank Limited is the first
Pakistani bank which has recently opened a branch in the industrial city of
Urumqi, China.
Increasing bilateral trade requires
banking services between the two countries. China is now the biggest trade
partner of Pakistan while the trade volume has been increasing rapidly each
year.
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