KARACHI, Nov 10: Hongkong & Shanghai Banking Corporation (HSBC) has increased paid-up capital invested in Pakistan by 50 per cent or Rs500 million, and now has Rs1.5 billion in capital dedicated to Pakistan market.

This is only first step and further increase of Rs500 million will follow in 2005, said CEO HSBC Pakistan Guy Priestley here on Wednesday.

He said this was "a very emphatic" statement of HSBC's commitment to growing Pakistani financial sector and general economy.

"Although we are a foreign bank, during the 22 years we have been in Pakistan we have seen many changes and endured many vicissitudes side-by-side with Pakistani people. It is with great pleasure that we have seen return to solid and sustainable growth in recent years, which gave us confidence to bring more investment into Pakistan and increase our capital here," Mr Priestley noted.

He said the current year has been "a very good year" for HSBC Group's relations with Pakistan, not least when in October Pakistan government selected HSBC to co-lead its first sovereign Islamic bond issue.-PPI