ISLAMABAD: In a bid to further facilitate bilateral trade between Pakistan and Chine, the first Pakistani bank is going to start operations in China next week. In this regard, Federal Minister for Commerce, Khurram Dastgir Khan will make an announcement in a press conference in the coming week.
In January 2015, in the 3rd meeting of the second phase of Free Trade Agreement (FTA) negotiations held here in Islamabad, both Pakistan and China agreed to soften rules and regulations for opening each others’ banks in either countries. This decision was made to further facilitate Pakistani private banks to open their branches in China as the minimum capital threshold of banks was further reduced.
A well placed source at Ministry of Commerce (MoC) told Customs Today that Habib Bank Limited had won license for starting operations in China some months back. In this regard, Additional Secretary Trade Diplomacy Rubina Athar told this scribe that operational branch of Pakistani private bank would further ease the trade agreements as well as export of services to China.
“Our traders, both importers and exporters, will have leverage to deal with Chinese and other international counterparts with more confidence as they will enjoy banking facilities nearest to their site of negotiations” she said.
She further added that the availability of banking services in China would also encourage foreign investors to pay more attraction in inking trade agreements with Pakistani businessmen.
On the other hand a well placed source at Finance Ministry said that HBL would also the first South Asian bank to get the permission to set up its banking operations in Urumqi, the largest city in the province of Xinjiang, which borders Pakistan along the traditional Silk Route. Urumqi is a growing commercial and trade center and the regional hub for the Belt and Road Initiative in Central Asia.
Moreover, the source said that operationalisation of HBL in China would pave the way for greater collaboration between Pakistan and China as well as a cornerstone of CPEC, which would not only contribute to trade and commerce between the two countries, but become a conduit of progress and development for the region and its people in times to come too.
“With the opening of the China branch, HBL will be the only bank to have a footprint in North West China, Central Asia, Southeast Asia and East Africa, and will be positioned to promote trade and investment between these geographical regions, as well as China and Pakistan” the source observed.
