Pakistan and China see bright prospects strengthening their bilateral ties in the financial and banking sectors, with the smooth functioning of the economic corridor project, the CPEC.
There has been more spark and encouraging outcomes in these two sectors in the recent years, said a report published by Gwadar Pro media net. Multiple reports show, both the Chinese and Pakistani banks are playing vital role in accomplishing the common goals, set by the political leadership of both the countries since the launching of CPEC,
The China’s leading development financial institutions: BOC, ICBC, EXIM and CDB, have made “strategic deployments” to expand their businesses and supporting Chinese companies to scale up investment and cooperation in Pakistan.
Such deployments have stimulated not only economic development but also have increased bilateral and multilateral financial cooperation between the public and private banks of two strategic cooperative partners.
Pakistan’s SBP, HBL, UBL, Allied and UFONE have expanded diverse financial cooperation with Chinese partners that includes opening up of bank branches in Chinese cities, Urumqi and Beijing, currency agreement, and RMB transactions.
To achieve the stipulated goals in the financial sector, Chinese banks are seen not only supporting Pakistan’s economic managers in boosting development initiatives but also lowering their worries amid widening current account deficit and slipping foreign exchange reserves.
These facts indicate that leading Chinese financial organizations are contributing in Pakistan’s economy and making the country a crucial hub of China’s Belt and Road initiative (BRI).
Under the CPEC paradigm, bilateral financial cooperation in banking sector also seems playing an important role in bridging the gap between the private sectors of both the countries. In this context, a recent achievement took place on October 2019, when Pak Telecom Mobile Limited through which HBL extended a bilateral Trade Finance in the Chinese Yuan (RMB/CNY) for the import of cellular network equipment through Huawei Technologies Co Ltd.
This deal set a new precedent for expanding ChinaPakistan trade ties under the cooperation framework of CPEC. The expansion of banking sector cooperation, marks the confidence of the Chinese corporate sector in Pakistan’s economic situation, and secondly it paves the way of China’s help to effectively reap the benefits of China’s economic prosperity in Pakistan. Through banking cooperation, Pakistan also get the opportunity, learning from the Chinese banks’ expertise in the small and medium enterprises sectors, the report added.