State Bank of Pakistan has granted the government-run Bank of China a license to operate in Pakistan. The bank will commence its business in branch mode after meeting other regulatory requirements.
The Bank of China aims to ease the financial requirements regarding China Pakistan Economic Corridor (CPEC) related projects. China has pledged to invest some $57 billion in Pakistan’s rail, road and energy infrastructure through its vast modern-day “Silk Road” network of trade routes linking Asia with Europe and Africa.
A press statement says that Bank of China will first bring in $50 million to meet minimum capital requirements. Bank of China has its footprint in 50 countries across the globe, It is 4th and 5th largest global bank in terms of Tier-1 Capital and total Assets respectively.
It is worth noting that International Monetary Fund is forecasting 5 percent economic growth for the year to June 2017 but says this could improve to 6 percent in the medium term with CPEC-related investments.