How Chinese are gradually gaining presence in Pakistan financial system…

I had just pointed how Pakistan has allowed Yuan for denominating foreign exchange transactions.

This speech by Pakistan Central Bank chief given in Nov-2017 shows how Chinese are gradually gaining presence in Pakistan financial system. The speech was on occasion of Bank of China opening its Pakistan operations:

In contrast to the protectionist sentiments that are gaining momentum in some parts of the world, Pakistan and China present a distinct example of regional cooperation and harmony. The financial linkages between Pakistan and China are growing manifold. We are already host to Industrial and Commercial Bank of China Limited (ICBC). Recently, consortium of Chinese investors acquired forty percent shares in Pakistan Stock Exchange. Chinese investors have evinced interest in acquiring KE. I am also aware that other Chinese institutions are exploring the possibility of making investments in the financial and other sectors of our economy. Our banks have also been venturing into China and some of them have established branches and representative offices in China, such as Habib Bank Limited, National Bank of Pakistan, United Bank limited and Bank Al-Habib.

With start of Bank of China operations, ties between Pakistan and China will strengthen further. Bank of China is not an ordinary bank. It is one of the big-four banks in China and is a Global Systematically Important Bank. It is ranked amongst the top global banks in terms of assets and has a significant footprint in over 50 countries. It brings with it a rich heritage of over 100 years of banking experience, practices, and knowledge. As Bank of China is a key partner in China’s “One-Belt One-Road” initiative, we expect that it will be able to effectively cater to the financing needs of CPEC projects by leveraging its specialized services and expertise.

Presence of Bank of China in Pakistan is also expected to benefit the banking sector through technology transfers and associated innovation in products and processes, human capital development and improved competition and efficiency in the financial services.

 

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