The Bank of China operations in Pakistan has been allowed by the State Bank. This is the second Chinese bank being allowed to operate in Pakistan.
Earlier in May 2011, the Industrial and Commercial Bank of China (ICBC) opened two branches in Karachi and Islamabad. It provides services like investment banking, foreign deposits, project loans, corporate finance and working capital loans.
According to State Bank of Pakistan, the Bank of China’s vision is to provide specialised banking services to fulfil the financing needs of China-Pakistan Economic Corridor (CPEC) projects on the basis of its experience and global technology platform.
A licence had been issued to Bank of China by the State Bank of Pakistan, earlier in the month of May. The Bank of China has successfully complied with all the important operational and regulatory requirements necessary to commence banking business in Pakistan.
An investment arm of the Government of China, Bank of China is a subsidiary of China Central Huijin.
The Bank of China 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 Bank of China is spread across 50 countries out of which 19 are located across China’s One Belt One Road initiative.
The Bank of China’s entry in Pakistan will further strengthen the bilateral relationship of Pakistan and China. It will also restore the confidence of international investors on the country’s banking sector – depicting stable economic outlook.
Habib Bank Limited is the first Pakistani bank which has recently opened a branch in the industrial city of Urumqi, China.
China is now the biggest trade partner of Pakistan while the trade volume has been increasing rapidly each year. Increasing bilateral trade requires banking services between the two countries.