According to a press release, the State Bank of Pakistan (SBP) has granted a license to the Bank of China to set its base in Pakistan.
The Chairman of the Bank of China, Tian Guo Li was invited by Pakistan’s Finance Minister Ishaq Dar in their meeting held in Beijing to launch their first branch in Karachi, Pakistan.
The Central Hujin Investment, a Chinese investment company has put forth this idea and is to work under branch mode initially. The investment body, owned by the Chinese government is yet to cover up some official requirements before they get starting.
History of Bank of China
The Bank of China operates in more than 50 countries around the globe, 19 out of which are structured along the Chinese One-Belt-One-Road initiative.
According to the facts accumulated by the end of 2015, almost 11,633 institutions are working under BoC. The overseas markets cover 644 of these institutions. Furthermore, with respect to tier-1 capital, it is the fourth largest bank operating globally and fifth largest owing to its total assets. It also has a continuous listing in the Stock Exchange market of Shanghai and Hong Kong.
By opening up branches in various cities of Pakistan, the Bank of China aims to expand its market as this objective will serve the SBP with initial revenue of $50 million to cover up its minimum capital requirements.
China-Pakistan Economic Corridor (CPEC) is also to be aided regarding their financial needs through the remarkable services offered by the bank. The projects related to CPEC will receive potential favor by the Bank of China by getting the maximum advantage of their experience and global technology platform.
With the encouragement offered by the Finance Minister of Pakistan, Ishaq Dar, the Chairman of the Bank of China speculates to expand their business in other cities of Pakistan in the near future.