The Industrial and Commercial Bank of China (ICBC) in Pakistan has launched a Renminbi (RMB) clearing bank, providing a platform for seamless cross-border transactions between Pakistani and Chinese businesses and financial institutions, catering to the financial requirements of both countries.
In Islamabad, a prominent inauguration ceremony was attended by officials, experts, and business representatives from both Pakistan and China. The Karachi branch of ICBC was specifically chosen as the RMB clearing bank in Pakistan by the People’s Bank of China, designated to manage RMB transactions and enable RMB-related services such as clearing, settlement, and facilitation of buying, selling, borrowing, and lending for participating banks in Pakistan.
Shamshad Akhtar, the caretaker Minister for Finance, Revenue, and Economic Affairs, emphasized that establishing RMB clearing operations would interconnect Pakistani offshore and Chinese onshore RMB markets, fostering cross-border transactions in trade and investment fields. This initiative marks the maturation of Pakistan’s RMB clearing system, with China demonstrating commitment by allocating more resources to support its development.
Jameel Ahmad, the Governor of the State Bank of Pakistan, highlighted the rising importance of China in global trade, citing that over 12 percent of the International Monetary Fund’s Special Drawing Rights basket is represented by the Chinese currency RMB or yuan. Establishing a local RMB clearing system is projected to yield long-term benefits for the relationship between China and Pakistan, as well as for Pakistan’s economy and banking system.
Chinese Ambassador to Pakistan, Jiang Zaidong, emphasized the RMB clearing bank’s role in providing financial support for the two countries’ collaborative efforts under the Belt and Road Initiative (BRI). He expressed China’s readiness to work closely with Pakistan, implementing vital agreements between the leaders of both nations, enhancing the China-Pakistan Economic Corridor (CPEC), and contributing positively to the high-quality development of the BRI.
Zhang Weiwu, Vice President of ICBC, highlighted the bank’s role in promoting financial cooperation between the two countries. He emphasized the bank’s potential in advancing bilateral trade and supporting the construction of the CPEC for the mutual benefit and cooperation of both countries.
Launched in 2013, the China-Pakistan Economic Corridor (CPEC), a flagship project under the Belt and Road Initiative, focuses on energy, transportation, and industrial collaboration, connecting Gwadar port in southwestern Pakistan to Kashgar in northwest China’s Xinjiang Uygur Autonomous Region.
